Baxter Completes Division Spin-Off

Baxter International Inc. said Monday that it has completed the spin-off of its medical research division in Irvine, forming a new venture with a Delaware biotech company to develop treatments for cancer, AIDS and other diseases.

Wilmington-based Vimrx pharmaceuticals will have an 80.5% stake in the company, which is yet to be named. Baxter also will receive a 19.5% interest in the new company and warrants to purchase an additional 6% for $6 million.

Baxter will provide $30 million and Vimrx will provide $10 million to the new company as initial operating funds. The new company will pay Baxter milestone payments of up to $21 million over several years, the companies said.

The assets of Baxter’s Immunotherapy unit, which generated gross revenue of about $9 million in 1996, will be transferred to the new company. Baxter will continue to make and distribute cancer-related cell therapy products for the new company. The transaction should close by year-end.