Deerfield, Ill.-based Baxter said will pay $190 million for Cheetah Medical upfront, with the potential for an additional $40 million based on clinical and commercial milestones.
The acquisition will provide Baxter with Newton, Mass.-based Cheetah Medical’s Starling SV system, designed to provide clinicians with fluid responsiveness measurements for maintenance of organ and tissue perfusion.
Baxter said it believes Cheetah’s monitoring technology will help shift fluid administration care away from a “one-size-fits-all” approach and allow clinicians to better manage patients with sepsis, acute kidney injury and other critical conditions, as well as patients undergoing surgery.
“The robust capabilities and innovative monitoring technologies we will gain with the acquisition of Cheetah Medical will be additional strategic growth drivers as we work to eliminate preventable harm and enable personalized therapy for hospitalized patients around the world,” said David Ferguson, Baxter’s GM of medication delivery, in a news release. “We are enthusiastic about the opportunity to bring these products to more patients and clinicians and look forward to building upon Cheetah Medical’s expertise and technology to enhance our leadership in medication delivery and critical care.
“Cheetah Medical brings a talented team with globally recognized experience in monitoring and fluid management,” Ferguson added. “We welcome the new employees who will help us grow our leadership in this space and join us in our mission to save and sustain lives.”
“We strongly believe in the power of our technology to help clinicians make more confident and informed treatment decisions in ways that can help improve patient outcomes and enhance healthcare efficiencies,” said Chris Hutchison, president & CEO of Cheetah Medical. “Becoming part of Baxter will enable us to continue to invest in clinical and commercial initiatives on a global basis, which will help ensure that the right therapy gets to the right patients at the right time.”
Baxter said it expects the acquisition to close in the fourth quarter of 2019 and that purchase will be immaterial to earnings in 2019 and 2020.
BAX shares were down -2.8% at $84.76 per share in early-morning trading today.