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news.US-based healthcare company Baxter International has signed an exclusive three-year distribution agreement in the US and international markets with Sigma International General Medical Apparatus for infusion pumps.
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The agreement enables Baxter to immediately provide Spectrum large volume infusion pumps to customers and grants Baxter access to Sigma’s product development pipeline, which will complement Baxter’s current infusion systems portfolio and next generation technologies.
The agreement includes an upfront cash payment by Baxter of $100 million for exclusive distribution rights in the US and international markets, a 40% equity stake for Baxter in Sigma, and an option to purchase the remaining portion of the company in the future.
Baxter may make additional payments of up to $130 million for the exercise of its option to purchase the remaining portion of the company as well as for the achievement of certain R&D, regulatory, and commercial milestones. The agreement is not expected to have a material impact on Baxter’s 2009 financial results.
Roger Hungerford, founder and CEO of Sigma, said: “We are excited to work with Baxter to more rapidly introduce and expand Spectrum’s presence in hospital and homecare settings. This will also allow us to focus further on our R&D work, the very core of Sigma.”