The American Red Cross moved to exit the plasma-therapeutics business, signing a long-term procurement contract with Baxter Healthcare Corp. and terminating its long-standing contract manufacturing agreement for the processing of plasma products. Financial terms were not disclosed. Baxter will buy plasma from the Red Cross beginning July 1. The company said the change to direct sales from contract manufacturing would increase its annual revenue from antibody therapy and other plasma products by approximately $100 million in 2006. Red Cross officials said the decision to divest the plasma business and become strictly a plasma supplier like other blood banks was part of a strategic initiative at the Red Cross to concentrate on its core mission of blood services. -- by Cinda Becker
Red Cross to pass plasma-therapeutics business to Baxter
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