Is Baxter Going to Shed Two of its Kidney Care Businesses?

Baxter could be on the way to shedding two units within its kidney care business, according to a report from Bloomberg, citing people familiar with the matter.

The Deerfield, IL-based company could be doing this as a simple reset after it closed on its $12.4 billion acquisition of Hillrom late last year.

“Global sales for renal care were $931 million, increasing 2% on a constant currency basis,” said José Almeida, chairman president and CEO of Baxter, according to a transcript from Seeking Alpha.

According to the report from Bloomberg, the divested kidney care businesses would be valued at well under $1 billion.

There are a lot of big developments occurring in the renal care market – especially on the medtech side.

In May, Medtronic and DaVita announced the creation of a new kidney-focused medical device company. The new company, which has yet to be named, will develop kidney care products and solutions, including future home-based products, to make different dialysis treatments more accessible to patients.

And earlier this year, Fresenius Health Partners entered a three-way merger with InterWell Health, a physician organization driving innovation in the kidney care space and Cricket Health, a provider of value-based kidney care with a patient engagement and data platform. 

The new company, which will be fully consolidated by Fresenius Medical Care as the majority owner and operate under the InterWell Health brand, is valued at $2.4 billion.