Baxter asserted the strength of its soon-to-be-spun-out biopharma unit Baxalta this week, saying it will introduce 20 new products to the market between now and the end of the decade.
Pro forma sales will be $5.9bn in 2015 – roughly 4% down on 2014 – but will grow 6-8% a year between 2016 and 2020 thanks to the contribution of new drugs that will add around $2.5bn in revenues.
The specialist in haematology, immunology and cancer therapies has “a solid foundation and strong momentum,” according to Baxter’s chief executive-elect Ludwig Hantson, who is due to take charge when the spin-off completes on July 1.
Baxter first announced its intention to separate its biopharma and medical technology businesses in March 2014, following the trend among drugmakers to trim down and focus their operations by divesting non-core units.
The new crop of products that Baxalta is banking on include primary immunodeficiency therapy HyQvia, launched in the US last October, and long-acting haemophilia A therapy BAX 855 which is scheduled for introduction before the end of the year.
BAX 855 will help Baxalta maintain its haemophilia franchise – currently headed by recombinant Factor VIII product Advate – in the face of competition from Biogen and Bayer.
The company has also showed it is willing to license in additional candidates, announcing a $900m deal last week to buy leukaemia drug Oncaspar (pegaspargase) from Italy’s Sigma-Tau along with two follow-up products.
In March Baxter also cut a $225m deal to buy SuppreMol – adding a lead product for treatment of ITP and lupus in phase II trials to Baxalta’s portfolio – while last year it acquired AesRx to gain control of its Aes-103 (5-hydroxymethylfurfural) candidate for sickle cell disease.
The addition of Oncaspar will help Baxter’s cancer sales reach around $700m in 2020, with biosimilars adding another $150m. Meanwhile, Baxalta said it will “further augment its pipeline through external partnerships and strategic acquisitions.”
Baxter stands to receive approximately $4bn through a cash dividend from Baxalta once the spin-off takes place and will retain an equity stake in the biopharma company of approximately 19.5%.