Baxter acquires Chilean I.V. solutions producer Forgen. ; Sueros Forgen Sociedad Ltda. – Baxter International Inc. Deerfield, Illinois
Supporting its strategy of expanding into high-growth overseas health care markets, Baxter World Trade Corp., the chief international operating subsidiary of Baxter International Inc., Deerfield, Ill., has purchased Sueros Forgen Sociedad Ltda. The Chilean company, known as Forgen, is a privately held I.V. solutions manufacturer and distributor based in Santiago, Chile.
The transaction is expected to provide the impetus to give Baxter World Trade an immediate leadership position in the Chilean private hospital I.V. solutions market. Perhaps more importantly, the deal will also provide Baxter with an outlet to increase sales of its other products such as medical gloves, I.V. pumps and administration sets.
The deal is the second recent international transaction engineered by Baxter. In late February the company reached agreement with Stille AB of Stockholm, Sweden for the distribution of precision surgical instruments in North America by the V. Mueller division of Baxter Healthcare Corp., McGaw Park, Ill. Baxter will use about 55 sales specialists to sell the Stille products, the best known of which is its “Super Cut” scissors. That product combines a knife edge ground on one blade with a scissor edge ground on the paired blade to provide precision cutting in such procedures as reconstructive and plastic surgery.
Baxter opened a sales office in Santiago in 1993. Before that, local distributors were used to sell Baxter products in the South American nation. In addition, Baxter will upgrade its existing manufacturing plant to produce I.V. solutions in its Viaflex[R] bags, products that are said to be of higher quality than bags previously available in that market. Baxter World Trade will also gain a local filling site for continuous ambulatory peritoneal dialysis (CAPD) products, supplies used to treat kidney disease. Estimates are that nearly 2,500 patients with end-stage renal disease are being treated in Chile alone, and that number could grow to about 4,000 by 1999. The Chilean government began full reimbursement for pediatric dialysis therapy in January. Reimbursement for all age groups is anticipated by next year.
Besides the Chile office, Baxter World Trade opened sales offices in Ecuador, Peru and Argentina between 1993 and 1994. The company also has two manufacturing operations in Brazil and one each in Colombia and Mexico.
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