Monday, March 20, 2023

Baxter BioPharma Solutions to Go PEU?

The Carlyle Group and KKR expressed interest in Baxter International's BioPharma unit.  Reuters reported:

Baxter's biopharma solutions unit supports drugmakers in the formulation, development and commercialization of drugs typically given by infusion or injection, such as biologics and vaccines.

Thermo Fischer Scientific and Celltrion are also exploring buying the division.  

Carlyle has a huge healthcare portfolio.  It would behoove officials to remember Carlyle's driving nursing home giant ManorCare into bankruptcy.  

They also may wish to recall KKR's ownership of hospital giant HCA.  KKR bled HCA of billions in management fees, dividends and distributions.  KKR and Bain Capital's HCA ownership added an unnecessary $15 billion in costs to our absurdly expensive healthcare non-system.

The Fed and FDIC just saved Silicon Valley Bank which directly marketed to private equity CFOs.  Private equity underwriters (PEU) win, time and time again.  

Let's hope the greed and leverage boys don't land another important healthcare company.  Our nation can't afford it.

Update 3-30-23:  Carlyle is using Atmas Health to bid on Medtronic's patient monitoring and respiratory interventions businesses.