Baxter International Inc., the world's second-biggest maker of medical products, said it will spin off its large cardiovascular division to shareholders next year to make it more aggressive in a highly competitive industry.
The move, approved Sunday by Baxter's board in Deerfield, Ill., will create one of the largest cardiovascular businesses in the country.
The new Irvine-based firm, as yet unnamed, makes the world's best-selling tissue heart valves and is expected to generate nearly $1 billion in revenue this year.
Investors greeted the news of the spinoff by snapping up Baxter stock. The shares rose $3.31, or 5%, to $64.19 in heavy trading on the New York Stock Exchange.