Baxter said the move will split its biopharmaceuticals business from its medical equipment unit. The medical equipment business generated revenue of about $9 billion last year, compared to about $6 billion for the biopharmaceutical unit. Baxter indicated that both of the new companies will be headquartered in Illinois, Reuters notes.
Charges relating to the separation of the Baxter units are not expected to alter its previously-issued financial outlook for 2014.
The split will have to be cleared by regulators. If approval is given, Baxter expects to complete the separation by mid-2015.
BAX stock closed at $68.39 per share on Wednesday. Over the past 12 months, BAX stock has slipped about 2%.