SOURCE: Edwards Lifesciences Corporation

Edwards Lifesciences Corporation

June 23, 2009 08:00 ET

Edwards Lifesciences to Sell Its Hemofiltration Product Line to Baxter

IRVINE, CA--(Marketwire - June 23, 2009) - Edwards Lifesciences Corporation (NYSE: EW), the global leader in the science of heart valves and hemodynamic monitoring, announced today that it has entered into a definitive agreement with Baxter International Inc. (NYSE: BAX) to sell certain assets related to its hemofiltration product line, also known as continuous renal replacement therapy (CRRT). The transaction is expected to close in the third quarter of 2009, pending regulatory approvals.

Under the terms of the agreement, Edwards will receive an initial cash payment of approximately $56 million from Baxter upon the close of the transaction. Additionally, Edwards will provide transition services to Baxter and expects to receive up to an additional $9 million based on revenue objectives to be achieved over the next two years. Edwards is not revising its previous 2009 earnings guidance as a result of this transaction.

"This transaction allows Edwards to better focus on its global strategic priorities," said Carlyn D. Solomon, Edwards' corporate vice president, Critical Care and Vascular. "Baxter has been our long-term supplier and partner for this business and we believe this product line will thrive under Baxter's ownership. We express our sincere gratitude to the employees and clinicians that have partnered with us to make it a success."

Hemofiltration, or CRRT, mimics the function of the kidneys 24 hours a day for patients with life-threatening kidney injuries or edema (fluid overload). CRRT provides a method of continuous, yet adjustable, fluid removal that can gradually remove excess fluid and the waste products that build up with the acute impairment of kidney function, and is usually administered in an intensive care setting in the hospital. Baxter currently supplies solutions used in CRRT treatment globally, and is the exclusive distributor of Edwards' product in China, Latin America and the United States. This product line is part of Edwards' Critical Care business and represented approximately $50 million in sales in 2008, primarily in Europe.

About Edwards Lifesciences

Edwards Lifesciences is the global leader in the science of heart valves and hemodynamic monitoring, with more than five decades of experience in partnering with clinicians to develop life-saving innovations. Headquartered in Irvine, Calif., Edwards treats advanced cardiovascular disease with its market-leading heart valve therapies, and critical care and vascular technologies, which are sold in approximately 100 countries. The company's global brands include Carpentier-Edwards, Cosgrove-Edwards, Edwards SAPIEN, FloTrac, Fogarty, PERIMOUNT Magna and Swan-Ganz. Additional company information can be found at http://www.edwards.com.

This news release includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These forward-looking statements can sometimes be identified by the use of words such as "may," "will," "should," "anticipate," "believe," "plan," "project," "estimate," "expect," "intend," or other similar expressions and include, but are not limited to, those related to the expectation that regulatory approvals will be timely received and that revenue objectives will be achieved. Forward-looking statements are based on estimates and assumptions made by management of the company and are believed to be reasonable, though they are inherently uncertain and difficult to predict. Our forward-looking statements speak only as of the date on which they are made and we do not undertake any obligation to update any forward-looking statement to reflect events or circumstances after the date of the statement.

Forward-looking statements involve risks and uncertainties that could cause actual results or experience to differ materially from that expressed or implied by the forward-looking statements. Factors that could cause actual results or experience to differ materially from that expressed or implied by the forward-looking statements include those and other risks detailed in the company's filings with the Securities and Exchange Commission including its Annual Report on Form 10-K for the year ended December 31, 2008.

Edwards is a trademark of Edwards Lifesciences Corporation. Edwards Lifesciences, the stylized E logo, Carpentier-Edwards, Cosgrove-Edwards, Edwards SAPIEN, FloTrac, Fogarty, PERIMOUNT Magna and Swan-Ganz are trademarks of Edwards Lifesciences Corporation and are registered in the United States Patent and Trademark Office.

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