Baxter International Inc. BAX recently announced the acquisition of biopharmaceutical company, SuppreMol, for $225 million. A privately held company based in Martinsried, Germany, SuppreMol is a developer of multiple treatment options for autoimmune and allergic diseases.
Post-acquisition, Baxter will gain access to SuppreMol’s early-stage development portfolio of novel biologic immunoregulatory therapeutics.
SuppreMol also possesses progressive capabilities to inflect Fcgamma receptors, the pathway that is expected to drive response from immune cells.
SuppreMol’s encouraging pipeline also includes SM101, an investigational immunoregulatory treatment which has completed Phase 2a studies in idiopathic thrombocytopenic purpura (ITP) and systemic lupus erythematosus (SLE) disorders.
Baxter is expected to continue SuppreMol’s operations in Munich, going forward. We feel the buyout of SuppreMol is an important development, from the stand-point of Baxter. SuppreMol is expected to significantly boost Baxter’s portfolio with one clinical asset and four preclinical agents. This, in turn, will aid Baxter gain better market traction.
Notably, in March 2014, Baxter had announced its intention to separate its biopharmaceuticals and medical device segments into two independent companies – Baxalta Inc. and Baxter International Inc.
While Baxter International will focus on lifesaving medical products, Baxalta Inc. will emphasize on the development and marketing of innovative biopharmaceuticals. Ahead of the spin-off, which is expected later this year, Baxter has taken a number of significant steps, which will help the newly formed Baxalta to gain traction in the market.
In July last year, Pfizer Inc. PFE had agreed to acquire a couple of marketed vaccines from Baxter for $635 million. The two vaccines include meningitis vaccine NeisVac-C and tick-borne encephalitis vaccine FSME-IMMUN/TicoVac. The divestiture will help Baxalta to focus on its core business.
Baxter has also completed the acquisition of AesRx, LLC, a privately-owned orphan drug producer in the U.S., which presents opportunities for further product expansion in the long run.
Zacks Rank
Currently, Baxter International has a Zacks Rank #4 (Sell). Better-ranked stocks in the medical sector at the current moment include Affymetrix AFFX and Abaxis ABAX. Both the stocks sport a Zacks Rank #1 (Strong Buy).
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