DEERFIELD, Ill., January 7, 2008 — Baxter Healthcare Corporation today announced an agreement with Nycomed that grants Baxter exclusive rights to market and distribute the company’s TachoSil^® patch in the United States. TachoSil is a patented Nycomed product, which is currently available in more than 50 markets outside of the United States including Europe and Japan. The product is a fixed combination of a collagen patch coated with human thrombin and fibrinogen. It is used in a variety of surgical procedures to seal tissue and control bleeding, requires little preparation and can be stored at room temperature. The currently approved indication in Europe is “for supportive treatment in surgery for improvement of hemostasis where standard techniques are insufficient.” TachoSil is not yet an approved product in the United States.

 

“TachoSil complements Baxter BioSurgery’s portfolio of surgical products offered in the United States as it is well-established in Europe and Japan as a device to help control bleeding and seal tissues in a variety of surgical procedures ,” said Ron Lloyd, vice president and general manager of Baxter’s BioSurgery business. “We look forward to bringing this product into the operating room in the United States through Baxter’s established sales force once it has been cleared by the FDA. Our sales representatives work with surgeons every day to offer them innovative biomaterials to help achieve hemostasis and tissue sealing in surgical procedures. We see TachoSil as an ideal addition to Baxter’s portfolio of TISSEEL, FloSeal and CoSeal products.”

 

The agreement with Nycomed allows Baxter to distribute TachoSil in the United States through 2022, while Nycomed will manufacture the product, hold the license and will be responsible for the regulatory filing expected later this year.

 

“We are delighted with this agreement,” says Dick Söderberg, Nycomed’s executive vice president, international marketing. “Our strategy in the United States is to work with the best available partners for marketing and commercialization and we really could not have found a better partner than Baxter that has such a depth of experience and expertise.”

 

In accordance with generally accepted accounting principles, Baxter expects to record a special pre-tax charge of $10 million for in-process research and development associated with the transaction in the fourth quarter of 2007. The arrangement also includes potential additional payments in the future based on the successful achievement of specified development, regulatory and sales milestones.

 

About Nycomed

 

Nycomed is a pharmaceutical company that provides medicines for hospitals, specialists and general practitioners, as well as over-the-counter medicines in selected markets.

 

The company is active within a range of therapeutic areas, including cardiology, gastroenterology, osteoporosis, respiratory, pain and tissue management. New products are sourced both from own research and from external partners. Operating throughout Europe and in fast-growing markets such as Latin America, Russia/CIS and the Asia-Pacific region Nycomed has a presence in about 50 markets worldwide.

 

Privately owned, the combined group had annual sales of approximately € 3.4 billion and an EBITDA of € 933.4 million (2006 results).

 

For more information visit www.nycomed.com.

 

About Baxter

 

For more information about TISSEEL click here.

 

For more information about CoSeal click here.

 

Baxter Healthcare Corporation is the principal U.S. operating subsidiary of Baxter International Inc. (NYSE:BAX). Baxter International Inc., through its subsidiaries, assists healthcare professionals and their patients with the treatment of complex medical conditions, including cancer, hemophilia, immune disorders, kidney disease and trauma. The company applies its expertise in medical devices, pharmaceuticals and biotechnology to make a meaningful difference in patients' lives.

 

This release includes forward-looking statements concerning Baxter’s expectations related to the new relationship between Nycomed and Baxter including statements related to the exclusive distribution rights and the approval to launch the products described in this release. The statements are based on assumptions about many important factors, including the following, which could cause actual results to differ materially from those in the forward-looking statements: the success of certain regulatory events regarding gaining regulatory approval for the products described in this release; the effectiveness of the products described in this release; the ability of Baxter to effectively capitalize on opportunities in existing and new markets for the products described in this release; demand for and market acceptance for the products described in this release; the impact of competitive products and pricing and disruptive technologies; internal and external factors that could impact commercialization; and other risks discussed in Baxter’s filings with the Securities and Exchange Commission (SEC) that could cause actual results to differ materially from those in the forward-looking statements. Baxter’s SEC filings are available on its website. Baxter does not undertake any obligation to update any forward-looking statements as a result of new information, future events, changes assumptions or otherwise, and all forward-looking statements speak only as of the time when made. Actual results or experience could differ materially from the expectations contained in the forward-looking statements.