Baxter’s BioPharma Solutions business will be renamed Simtra BioPharma Solutions (Simtra), which will continue to same solutions and capabilities to customers, as a standalone contract development and manufacturing organisation (CDMO)
Baxter closes sale of its BPS business. (Credit: Towfiqu barbhuiya on Unsplash)
US-based healthcare company Baxter International has completed the sale of its BioPharma Solutions (BPS) business to private equity investors Advent International and Warburg Pincus.
In May this year, Baxter agreed to divest its BPS business to Advent and Warburg Pincus, for a total of $4.25bn in cash along with net after-tax proceeds, estimated to be around $3.4bn.
As per the agreement, Baxter received $4.25bn cash, subject to certain closing adjustments.
The acquired BPS business will be operated as a standalone contract development and manufacturing organization (CDMO) under the name Simtra BioPharma Solutions (Simtra).
Simtra will continue to provide sterile contract manufacturing solutions, parenteral delivery systems and customised support services to the pharmaceutical and biotech industries.
In August this year, Franco Negron was announced as CEO of Simtra.
Franco Negron said: “I am thrilled to lead Simtra through this exciting time, augmenting the strong legacy that the team has built as part of Baxter.
“I look forward to collaborating with Advent and Warburg Pincus – two highly experienced investors within the healthcare space – to continue to grow Simtra’s mission-critical services across a variety of therapeutic areas.
“I am committed to delivering exceptional quality, service, and technical capabilities for our global customer base, and am excited to partner with our dedicated Simtra team members as we begin this new chapter.”
Advent has been investing in the healthcare sector and has completed more than 50 investments in 16 countries over the last three decades.
Warburg Pincus has invested more than $17bn in 180 healthcare companies, including Summit Health, Modernizing Medicine, Ensemble Healthcare, and Global Healthcare Exchange.
Simtra, in partnership with Advent and Warburg Pincus, is expected to become a fully independent, end-to-end CDMO providing a range of services for clients.
It will have a team of around 1,700 employees to operate manufacturing sites in Bloomington, Indiana and Halle, Germany, with new company corporate headquarters in New Jersey.
Advent managing partner John Maldonado said: “Companies across the pharmaceutical and biotech industries rely on Simtra for the premier contract manufacturing services and support services it provides.
“In partnership with Franco, the Simtra leadership team, and Warburg Pincus, we will strive to build on Simtra’s specialized capabilities and drive further product expansion that will ultimately benefit more patients with critical needs.”
Warburg Pincus managing director and healthcare head TJ Carella said: “Simtra is well-positioned to accelerate its go-to-market strategy under the new brand, expand its drug development offering, and execute on capacity expansion.”