Baxter (NYSE:BAX) is reportedly weighing the divestiture of its renal care services and hemodialysis business.
According to a Bloomberg report, the company is considering splitting with its kidney care businesses as part of a refocusing effort after its $12.5 billion acquisition of Hillrom last year. The outlet cited anonymous sources familiar with the matter.
The sources told Bloomberg that the business units will likely be valued “well under $1 billion” in total. Interest could come from private equity firms, according to the report. Baxter officials declined to comment, Bloomberg said.
Baxter’s renal care business brought in $931 million in revenues in the company’s most recent fiscal quarter (ended June 30, 2022). It develops dialysis machines, infusion pumps and other products.
CEO José (Joe) E. Almeida said on the company’s second-quarter earnings call that the company has businesses sitting on the periphery of its “main area of vision.” He said the potential portfolio shifts are active on the minds of company leadership.
Bloomberg reported the news after the market closed on Sept. 13. This morning, shares of BAX are up 0.8% at $58.61 apiece. MassDevice‘s MedTech 100 Index, which includes stocks of the world’s largest medical device companies, was down more than 3%.