Baxter has high hopes for new spin-off Baxalta

American health care company Baxter (NYSE: BAX) has said that it expects its spin-off company Baxalta to achieve constant-currency sales of 6%-8% between 2016 and 2020.

The split, expected for July 1, would see Baxter’s current bioscience division turning into Baxalta. The new company has implemented a new patient-centered research and development model, and has plans to launch 20 new products. These are anticipated to generate more than $2.5 billion in revenue by 2020. Hematology, immunology and oncology will be the three key areas of focus for Baxalta, as well as the products and technologies gained in recent acquisitions, such as Oncaspar (pegaspargase) from Sigma-Tau, expected to close in the second half of 2015.

Ludwig Hantson, president of Baxter's BioScience business, who will become chief executive of Baxalta, said: "Baxalta's vision is to be a global biopharmaceutical leader striving for excellence in advancing innovative therapies that improve patients' lives.”