Sector News

Categories

Borderless Insights

Image
The Skills-Forward Revolution:   Stretching the Boundaries of Professional Flexibility
Image
Sustainability: Business Leaders Must Secure the Long-Term Strategy Despite Short-Term Pressures
Image
Negotiating Terms with a New Employer

Can Baxalta deliver on its big growth promises? Baxter says yes

May 19, 2015
Life sciences
As Baxter prepares to spin off its biopharma unit into new drugmaker Baxalta, it’s touting strong, independent futures for both companies. But just how strong does Baxter expect its fledgling Baxalta to be?
 
For starters, it’s looking at sales growth of 6% to 8% in constant currencies, it said Monday. That’ll come, in part, from its anchor hematology products and immunology portfolio, which includes new launch HyQvia. And the company expects 20 new product rollouts by 2020, which will chip in more than $2.5 billion in annual sales by that point, it said.
 
“We have a solid foundation and strong momentum,” future Baxalta CEO Ludwig Hantson said in a statement.
 
All told, that sales growth should buoy Baxalta’s operating margin from about 29% in the second half of this year to between 30% and 31% in 2020, it predicted, and its adjusted EBITDA margin should jump from 33% to between 35% and 36% over that same span. It foresees a speed-up in free cash flow, too, to around $1.3 billion.
 
But with competition ramping up for key hemophilia moneymakers like Advate–Biogen, for one, has a long-acting competitor that’s priced on par with the older med, and others are on the way–Baxalta still has some moves to make. The company “plans to further augment its pipeline through external partnerships and strategic acquisitions,” it said, prioritizing those efforts around its core areas of focus.
 
Baxalta has already shown it’s willing to shell out for marketed therapies, too, such as the Oncaspar leukemia treatment it recently agreed to buy from Italy’s Sigma-Tau Finanziaria for $900 million. That buy will chip in $100 million in annual sales from countries including the U.S., Germany and Poland, Baxter said last week, bolstering a burgeoning oncology unit that Baxalta will need if it cedes any ground in the hemophilia space.
 
By Carly Helfand
 

comments closed

Related News

July 21, 2024

CordenPharma invests €900m in peptide platform expansion

Life sciences

CordenPharma announced its largest strategic investment to date, committing to spend ~€900m over the next three years to enhance its peptide technology platform. The planned investment consists of two major expansion initiatives occurring in parallel in the US and Europe, including both existing facilities and new constructions.

Read more
July 21, 2024

DSM-Firmenich to sell MEG-3 fish oil business to KD Pharma Group

Life sciences

DSM-Firmenich has announced the sale of its MEG-3 fish oil business to KD Pharma Group, a contract development and manufacturing organisation that is active in pharmaceutical and nutritional lipids. As part of the transaction, DSM-Firmenich will obtain a minority stake of 29% in KD Pharma’s parent company O³ Holding GmbH.

Read more
July 21, 2024

Veranova appoints Cécile Maupas as Senior Vice President, Chief Commercial Officer

Life sciences

Veranova, a development and manufacturing of specialist and complex APIs for the pharmaceutica l and biotech sectors, recently announced the appointment of Cécile Maupas as Senior Vice President, Chief Commercial Officer. Cécile will join the executive team and assume responsibility for business development, marketing, project management, commercial operations, and product management.

Read more
More news

How can we help you?

We're easy to reach