Baxter BuysVaccine Company
DEERFIELD, Ill. (AP) _ Baxter International Inc., the world’s leading medical technology manufacturer, said Thursday it is acquiring North American Vaccine Inc. in a $390 million stock transaction.
North American Vaccine, based in Columbia, Md., develops, manufactures and sells vaccines for children and adults to prevent infectious diseases.
Its top product is Certiva, a whooping cough vaccine that has been combined with diphtheria and tetanus toxoids to form a single vaccine.
The vaccine company had been looking for a new distribution partner for Certiva after Abbott Laboratories terminated their partnership.
Baxter said the vaccines market is expected to grow from $7 billion in 2000 to $13 billion in 2005 as the global population shifts increasingly to large urban centers. That will increase the need for vaccines to prevent infectious diseases from spreading in densely populated areas.
Baxter will pay $7 per share in Baxter common stock and cash for North American Vaccine’s approximately 37 million shares. It also will assume $133 million in debt.
North American Vaccine has about 300 employees. Baxter, based in the Chicago suburb of Deerfield, employs some 42,000 people worldwide.
Baxter shares fell 62 1/2 cents to $67 in trading at 5:15 p.m. Thursday on the New York Stock Exchange. North American Vaccine stock rose 37 1/2 cents to $6.418 3/4 a share, a 6.5 percent rise.