Baxter Sells Vero Cell Vaccines Platform, Manufacturing Facility To Nanotherapeutics

Baxter International is selling its Vero cell technology to Nanotherapeutics, Inc. The companies announced the definitive agreement in a press release, stating that the deal includes Baxter’s manufacturing facility in Bohumil, Czech Republic. The deal follows Baxter’s divestiture of its vaccine business and manufacturing facilities to Pfizer Inc. Ludwig Hantson, Ph.D., president of Baxter BioScience, said, "The divestiture of the vaccines franchise will allow Baxter BioScience to enhance focus in core therapeutic areas of hematology, oncology and immunology, as it prepares to become an independent biopharmaceutical company. In addition, these transactions provide flexibility to direct resources toward strategic priorities that will drive future growth."

Baxter and Nanotherapeutics Agreement

Baxter is selling its Vero cell platform, a cell-based technology to produce vaccines. Included are all the assets in the system including H5N1, H1N1, and seasonal influenza vaccines. Investigational vaccines include those for the Ross River virus, Chikungunya disease, and West Nile virus. The companies did not disclose financial terms or any further details on the sale.

The Vero cell platform is a cell culture system, a continuous cell line (CCL). The technology has been used for over 30 years and is widely accepted by regulatory authorities. The system rapidly develops vaccines for a number of viral diseases. The facility in the Czech Republic was commissioned by Baxter to expand its vaccine production capacity and grow its vaccines business. The facility is located in Bohumile, east of Prague. The site has room for over 200 scientific and technical professionals.

Baxter’s Strategic Priorities

Baxter stated that it divested the Vero cell platform, related assets, and manufacturing facility in order to focus on its strategic priorities. One of those priorities is spinning off its biopharmaceutical business. The spin-off, expected to be complete mid-2015, creates two global healthcare companies. Baxter International Inc. will focus on medical products while the newly minted Baxalta Inc. will focus on developing biopharmaceuticals.

In December 2014, Baxter updated its progress on the spin-off, stating that it filed Form 10 Registration Statement with the U.S. Securities and Exchange Commission (SEC), an important step in separating the companies. Ludwig Hantson, Ph.D., future CEO of Baxalta, said, "Baxalta will debut as a new, world-class biopharmaceutical company, carrying forward our heritage as an innovator and legacy of global leadership as part of Baxter International.”