Baxter plans to spin off biotech business in 2015

(Reuters) - Baxter International Inc said on Thursday that it would spin off its biotechnology operations into a publicly traded company by the middle of next year and focus on its core medical technology business, sending its shares up more than 7 percent. The move, which is similar to Abbott Laboratories' spinoff of AbbVie Inc at the beginning of 2013, is part of a trend among healthcare companies to split off businesses that are not part of their primary operations. Novartis AG is considering divesting some smaller businesses, which include animal health, vaccines and over-the-counter medicines, while Merck & Co Inc is selling its consumer healthcare business. At Baxter, Chief Executive Officer Robert Parkinson will continue in his role, while Ludwig Hantson, president of its BioScience group, will lead the new, as-of-yet unnamed biopharmaceutical company.



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