Baxter selects site for headquarters of spinoff company Baxalta

Baxter has announced that Baxalta, the biopharmaceutical company that is expected to separate from Baxter in mid-2015, is to be headquartered in Illinois.

The 260,000 sq ft facility at 1200 Lakeside Drive in Bannockburn has been selected for the new organisation, with a long-term lease agreement in place that extends for more than a decade.

Baxalta will be a leading provider of therapeutic treatments for people with rare conditions, chronic diseases or limited treatment options. Once it becomes an independent company, it is anticipated that the firm will generate global annual revenues of $6 billion (3.9 billion pounds).

It will be able to boast proven expertise in the fields of bleeding disorders and immunology, with new ventures planned in the areas of oncology and gene therapy.

Dr Ludwig Hantson, president of Baxter BioScience and chief executive officer-designate of Baxalta, said: "Selecting Baxalta's global headquarters is a key milestone on our journey to becoming a leading, independent biopharmaceutical company, and reaffirms our commitment to Northern Illinois and our strong employee base here."

This comes after Baxter sold off its vaccines business to Pfizer last year a part of efforts to streamline its strategic focus.