Baxter International announced on Monday that the company has agreed to sell its biopharma solutions unit for $4.25 billion as it seeks to dedicate more resources to its primary goal of developing a treatment for kidney disease and other acute chronic conditions.

Baxter’s biopharma solutions branch develops sterile contract manufacturing solutions and will be selling to the private equity firms Advent International and Warburg Pincus. Baxter believes that after taxes the company will receive roughly $3.4 billion from the sale. The proceeds will then be used to reduce the company’s debt moving forward.

Since the announcement of the deal Baxter’s stock price fell by 9.8% leaving the share price at $46.

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‍Source: Wall Street Journal