Baxter to acquire Prism Pharmaceuticals for up to $338 million

With the aim of expanding its drug delivery offerings, USA-based drugs and medical device maker Baxter International (NYSE: BAX) says it has entered into a definitive agreement to acquire privately-held Prism Pharmaceuticals, a specialty pharmaceutical company based in King of Prussia, Pennsylvania.

The terms of the agreement include a total consideration of up to $338 million, consisting of an upfront cash payment of $170 million at closing and up to $168 million in future sales-based milestone payments. The transaction is expected to close in the second quarter of 2011, subject to customary closing conditions and expiration of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act. This transaction is not expected to have a material impact on Baxter’s 2011 financial results, the company said.

Will bring in FDA-approved Nexterone