DEERFIELD, Ill., Aug. 6 /PRNewswire-FirstCall/ -- Baxter International
Inc. (NYSE: BAX) announced today a collaboration with DEKA Research &
Development Corp. and HHD, LLC for the development of a next-generation
home hemodialysis machine, which will further expand the company's
leadership in home dialysis therapy.
"This collaboration highlights Baxter's ongoing commitment to
innovation in end-stage renal disease (ESRD) treatment," said Bruce
McGillivray, president, Baxter's Renal business. "In addition, this
reflects a strategic approach to expediting and enhancing product
development through targeted partnerships."
Baxter and DEKA have collaborated on other successful products in the
past, most notably on the design and development of Baxter's HomeChoice
automated peritoneal dialysis machine.
"Home hemodialysis represents the next advancement in home dialysis
therapy," said McGillivray. "Our global leadership in home dialysis
therapy, combined with DEKA's new medical product development expertise,
will allow us to advance this promising technology at a faster pace."
In connection with the collaboration, Baxter has purchased an option to
acquire the assets of HHD, LLC and will fund DEKA's related research and
development activities. Baxter may also make future royalty payments to
DEKA. In accordance with Generally Accepted Accounting Principles (GAAP),
Baxter expects to record a special net pre-tax charge of up to $25 million
(or $0.04 per diluted share) for in-process R&D associated with this
transaction in the third quarter of 2007.
About home dialysis therapy
Dialysis serves as a replacement kidney, removing waste products and
excess fluid from the body. Conventional in-center hemodialysis, in which
patients receive treatments for four hours a day three times a week, has
reached a plateau in the advancement of patient outcomes. The nephrology
community is now investigating more frequent dialysis of patients as a
potential breakthrough in improving clinical outcomes.
A number of small-scale clinical trials have found that more frequent
and longer dialysis treatments, which are more achievable through at-home
therapy options, may result in significant short-term and long-term
clinical benefits for patients such as fewer hospitalizations, better
anemia control and improved blood pressure management.
"This will give us the opportunity to offer two forms of highly
effective at-home dialysis, peritoneal dialysis and home hemodialysis,"
said Sarah S. Prichard, M.D., vice president of global medical/clinical
affairs and research for Baxter's Renal business. "In addition, patients
who are on a home dialysis therapy also see an improvement in their quality
of life, as they have greater flexibility and control as to when they
receive their treatment."
About DEKA and HHD, LLC
Based in Manchester, NH, DEKA is a research and development company of
almost 200 employees comprised of engineering, manufacturing and quality
assurance professionals focused on the development of new technologies that
span a diverse set of applications. The company was founded in 1982 by Dean
Kamen, an inventor who holds more than 250 U.S. and foreign patents, many
of them for innovative medical devices that have expanded the frontiers of
healthcare worldwide. HHD, LLC owns and licenses certain intellectual
property assets expected to be utilized in the home hemodialysis program.
Baxter International Inc., through its subsidiaries, assists healthcare
professionals and their patients with the treatment of complex medical
conditions, including hemophilia, immune disorders, cancer, infectious
diseases, kidney disease, trauma and other conditions. The company applies
its expertise in medical devices, pharmaceuticals and biotechnology to make
a meaningful difference in patients' lives.
This release includes forward-looking statements concerning
expectations related to the collaboration between the parties including
those expectations related to Baxter's leadership in home dialysis therapy
and its strategic approach to product development, the effect on patients
of more frequent and longer dialysis treatments, and the financial impact
of this transaction on Baxter's earnings, including any special charges
that may be recorded. The statements are based on assumptions about many
important factors, including the following, which could cause actual
results to differ materially from those in the forward-looking statements:
actions of regulatory bodies and other governmental authorities; product
development risks; changes in laws and regulations; the ability to develop,
manufacture and sell home dialysis products; product quality or patient
safety concerns; reimbursement policies of government agencies and private
payers; demand for and market acceptance risks for new and existing
products and other technologies; the ability to enforce patents; numerous
other matters of national, regional and global scale, including those of an
economic, business, competitive and regulatory nature; and other risks
identified in the company's most recent filing on Form 10-Q and other SEC
filings, all of which are available on the company's website. The company
does not undertake to update its forward-looking statements.
SOURCE Baxter International Inc.