Baxter enters deal with SIGMA

Deerfield-based Baxter International Inc. announced an exclusive three-year distribution agreement with SIGMA International General Medical Apparatus for infusion pumps.

The agreement includes an upfront cash payment by Baxter of $100 million for exclusive distribution rights in the U.S. and international markets, a 40 percent 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.

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.

Spectrum is one of the latest generation smart pumps. Weighing approximately 2.5 pounds and measuring 1/10 the size of many other large volume pumps, it features a wireless connectivity option and smart pump technology intended to help reduce medication errors through the use of drug libraries that eliminate the need for clinicians to manually enter commonly used drugs and dosage rates.