Baxter has settled on a name for its $4.5 billion kidney care division, which is slated to strike out on its own as an independent portfolio of dialysis machines, acute renal therapies and services.
Vantive is expected to make its debut as a publicly traded company next year, by July 2024 at the latest, the company announced Tuesday. It will shepherd an organ support portfolio that has spanned nearly 70 years and currently reaches more than 1 million patients across 70 countries.
“The Vantive name reflects our dedicated employees’ steadfast commitment to patients and our passion for helping them lead full and meaningful lives in partnership with our customers,” Chris Toth, Baxter’s group president of kidney care, said in the announcement.
Toth is set to become CEO of the new company and its approximately 15,000 employees following the spinoff. A new logo and branding will be unveiled at a later date, the company said.
Vantive’s offerings will span the hospital, clinic and home, with hemodialysis machines and organ support hardware for intensive care units as well as self-performed peritoneal dialysis systems. The company will also support digital platforms for in-center and remote patient monitoring.
Vantive won’t be the only newly revarnished kidney player on the scene. Earlier this year, Medtronic completed the spinout of its renal division, establishing Mozarc Medical this past April through a joint venture with DaVita Kidney Care.
Word began to spread in September 2022 that Baxter was eyeing a potential sale of its kidney portfolio, which makes up the largest of the company’s core business divisions.
Over the 2022 calendar year, renal care accounted for $3.75 billion in revenue, while acute treatments—a segment that includes continuous renal replacement therapies and ICU life support—added about $700 million. Both segments saw declines compared to 2021, of 4% and 10%, respectively.
The news also followed Baxter’s multibillion-dollar deal to acquire Hill-Rom. In the time since first announcing the Vantive spinoff in January of this year, Baxter has begun cutting thousands of jobs as part of a cost-cutting plan after disappointing 2022 financial results.
A workforce reduction of less than 5%, among other cutbacks, aims to save the company more than $300 million this year. Baxter’s second-quarter earnings call for 2023 is scheduled for July 27.