Baxter board approves separation of biopharmaceuticals business

Baxter has announced that the planned separation of its biopharmaceuticals business has been ratified by its board of directors.

Coinciding with this announcement, a special dividend distribution of 80.5 percent of the outstanding shares of common stock in the new company has been declared, with Baxter to retain a 19.5 percent ownership stake in the business.

The new organisation will be called Baxalta and will be led by Dr Ludwig Hantson, the current president of Baxter BioScience. It will be headquartered in Illinois.

For each share of Baxter common stock held of record as of the close of business on June 17th 2015, Baxter shareholders will receive one share of Baxalta common stock, with payments to be made on July 1st.

The distribution of Baxalta common stock will complete the proposed separation process, with Baxalta set to begin trading at the start of July.

Robert Parkinson, Baxter's chief executive officer, said: "This announcement marks an important milestone towards the creation of two global independent healthcare companies that share a common heritage of saving and sustaining lives."