Baxter to acquire Cheetah Medical in $230m deal

Baxter acquisition of Cheetah Medical : US health care company Baxter International has agreed to acquire Cheetah Medical, a provider of non-invasive hemodynamic monitoring technologies in a deal worth up to $230 million.

As per the terms of the deal, Baxter will make upfront cash payment of $190 million followed by an additional payment of $40 million to Cheetah Medical subject to clinical and commercial milestones.

Cheetah Medical’s non-invasive hemodynamic technologies are used in operating room, critical care, and emergency conditions for a wide range of patient populations.

Baxter acquisition of Cheetah Medical is expected to accelerate the former’s footprint in the specialized patient monitoring space with key technology used for guiding fluid management, which is considered to be an important aspect of patient care, as too little or excess fluid can increase chances of death and risk of complications.

Cheetah Medical’s technology is said to focus on fluid administration that is data-driven and customized to individual patient needs rather than a “one-size-fits-all” approach. According to Baxter, this integrated approach to delivery of medication and monitoring of patients, clinicians will be better able to handle patients with sepsis, acute kidney injury (AKI), and other critical conditions, and also patients going through a surgery.

Commenting on Baxter acquisition of Cheetah Medical, David Ferguson – general manager of Baxter Medication Delivery, said: “The robust capabilities and innovative monitoring technologies we will gain with the acquisition of Cheetah Medical will be additional strategic growth drivers as we work to eliminate preventable harm and enable personalized therapy for hospitalized patients around the world.

“We are enthusiastic about the opportunity to bring these products to more patients and clinicians and look forward to building upon Cheetah Medical’s expertise and technology to enhance our leadership in medication delivery and critical care.”

After the acquisition, Baxter will have access to Cheetah Medical’s non-invasive hemodynamic monitoring systems, including the Starling SV system. The monitoring technologies are said to offer dynamic measurements of fluid responsiveness to help clinicians to make more confident and informed treatment decisions about the proper amount of fluid needed to sustain organ and tissue perfusion.

Chris Hutchison – president, and CEO of Cheetah Medical, commenting on Baxter acquisition of Cheetah Medical, said: “We strongly believe in the power of our technology to help clinicians make more confident and informed treatment decisions in ways that can help improve patient outcomes and enhance healthcare efficiencies. Becoming part of Baxter will enable us to continue to invest in clinical and commercial initiatives on a global basis, which will help ensure that the right therapy gets to the right patients at the right time.”

Baxter acquisition of Cheetah Medical, which is subject to meeting of customary closing conditions, is expected to be wrapped up in Q4 2019.