Baiyunshan and Baxter plan to form Parenteral Nutrition Joint Venture in China

11-16-2006: Baxter International Inc. and Guangzhou Baiyunshan Pharmaceutical Co. Ltd. announced plans to establish a joint venture to produce and sell parenteral nutrition products in China. Under the terms of a framework agreement, subsidiaries of the two companies will form a 50/50 joint venture during the first half of 2007. The companies expect to invest between (US)$65 and $70 million over the life of the joint venture. The agreement is subject to government review and approval.

To establish the new business, Guangzhou Baiyunshan Pharmaceutical will contribute its existing parenteral nutrition business and assets located in Guangzhou, China, through one of its subsidiaries, Baiyunshan Qiaoguang Pharmaceutical Co., Ltd. Baxter will help fund the venture and strengthen its product line, and manufacturing, clinical, and marketing expertise. The new business will manufacture and sell current Qiaoguang parenteral nutrition products and gradually expand its portfolio to include Baxter's products.