Thermo Fisher, Celltrion vie for Baxter's biopharma unit -sources

Celltrion

20/03/2023 21:49

(Adds Baxter market capitalization)
    By Anirban Sen and David  Carnevali
       March 20 (Reuters) - U.S. scientific instruments maker
Thermo Fisher Scientific Inc  TMO.N  and South Korea's Celltrion
Inc  068270.KS  are among those competing to acquire the
biopharma solutions business of medical device maker Baxter
International Inc  BAX.N , according to people familiar with the
matter. 
    The divestment, which the sources said could fetch more than
$4 billion, would help Baxter pay down debt following its $10.5
billion acquisition of medical device maker Hill-Rom Holdings in
2021. Baxter, which has a market value of $19 billion, had total
debt of $16.6 billion as of the end of December.
    Private equity firms, including KKR & Co  KKR.N  and Carlyle
Group  CG.O , have also expressed interest in the Baxter
business, the sources said. Other bidders could still emerge,
they added.
        The sources requested anonymity because the matter is
confidential. Baxter, Thermo Fisher and KKR declined to comment.
Celltrion and Carlyle did not immediately respond to requests
for comment.
    Baxter said in January it was exploring alternatives for its
biopharma solutions business and would also spin off its kidney
care units.
    The Deerfield, Illinois-based company focuses on areas such
as critical care, surgical products, nutrition and
pharmaceutical equipment.
    Baxter's biopharma solutions unit supports drugmakers in the
formulation, development and commercialization of drugs
typically given by infusion or injection, such as biologics and
vaccines. 
    Thermo Fisher, one of the world's largest suppliers of
scientific equipment, has been making acquisitions in recent
years to expand its offerings in contract research and
manufacturing, including  a $5.2 billion purchase of Patheon NV
in 2017 and a $17.4 billion takeover of PPD Inc in 2021. 
    Celltrion, whose co-founder and chairman Seo Jung-jin is
South Korea's richest person according to Forbes, is a
biopharmaceutical company that also has a contract research and
manufacturing arm. 

 (Reporting by Anirban Sen and David Carnevali in New York
Additional reporting by Chibuike Oguh in New York; Editing by
Bill Berkrot)
 ((Anirban.Sen@thomsonreuters.com; Twitter: @asenjourno; Reuters
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