Baxter International buying Asta Medica oncology unit for 525 million euros

Baxter International of the USA has signed an agreement withDusseldorf, Germany-based Degussa AG to acquire the company's Asta Medica oncology unit for approximately 525 million euros ($463.1 million). The companies expect the transaction to close before the end of 2001, pending the usual regulatory approvals, and Baxter noted that it will allocate "a significant portion of the purchase price to in-process R&D when the acquisition is closed." This will result in a one-time charge to 2001 earnings for the Illinois-based group, which added that the purchase should be accretive to 2002 earnings.

Harry Kraemer, Baxter's chief executive, said that the acquisition "is an excellent fit, both strategically and economically," as Asta Medica Oncology "is the perfect complement to our existing oncology portfolio." He claimed that the German firm brings "not only solid relationships with medical oncologists throughout the world and great market presence, but also exciting near- and long-term drug development opportunities and world-class production facilities."

Asta Medica Oncology's products are marketed in more than 100 countries, and have a significant market presence in the key regions of Europe, North America and Latin America. The unit's pro forma sales were approximately $130 million in 2000, and its principal products include Endoxan (cyclophosphamide), Holoxan and Ifex (both ifosfamide), and Uromitexan and Mesnex (both mesna).