Baxter International Inc. and Guangzhou Baiyunshan Pharmaceutical Co. Ltd. have formally established a joint venture to produce and sell parenteral nutrition products in China as Guangzhou Baxter Qiaoguang Healthcare Co. Ltd., based in Guangzhou, China.

Consistent with the agreement, announced in November 2006, the companies are participating in a 50/50 joint venture and are each investing between (US) $65 and $70 million. Guangzhou Baiyunshan Pharmaceutical has contributed its existing parenteral nutrition manufacturing facility located in Guangzhou, China. Baxter is providing new product technologies, technical expertise, product line management and clinical and marketing support.

Parenteral nutrition products used primarily by hospitals in clinical settings such as surgical, critical care, oncology and intensive care wards are essential to overall patient health, healing and recovery. These products are administered intravenously to provide life-sustaining support for patients who cannot achieve adequate nutrition through other means.

The company will manufacture and sell current Baiyunshan parenteral nutrition offerings along with Baxter's nutrition products. Baxter's ClinOleic, an olive oil-based parenteral emulsion, and Clinimix, a dual-chamber bag parenteral solution are currently produced in Belgium. Baiyunshan's parenteral products will continue to be produced at the Guangzhou facility, which will gradually expand to include the production of Baxter's products.