Baxalta (BAX.US) announced that it has entered into a definitive agreement with global investment firm Carlyle (CG.US) to sell its Vantive dermatology business for $3.8 billion. The transaction is expected to close in late 2024 or early 2025, and Baxalta expects to receive approximately $3.5 billion in cash, with an estimated net after-tax proceeds of approximately $3 billion, which the company plans to use to reduce debt.
The sale is part of Baxalta's strategic reorganization, aimed at improving performance and creating value for all stakeholders through the creation of an independent dermatology company. The plan was announced in January 2023 and further refined in March 2023 to include the possibility of selling the business.
Baxalta emphasized in its press release that the sale was the result of a rigorous assessment process to ensure maximization of shareholder value and provide greater capital flexibility to accelerate the growth objectives of both Baxalta and Vantive.
Following the transaction, Baxalta expects its annual revenue growth rate to be approximately 4% to 5%. For 2025, the company expects an adjusted operating margin of approximately 16.5% on a continuing basis. This outlook includes the expected 100 basis point negative impact of stranded costs, while excluding the expected transition services agreement revenue and the impact of the manufacturing supply agreement that the company expects to sign following the transaction.
As of the time of publication, Baxalta's stock price was down nearly 4% to $35.50.