Turning its back on the diversified healthcare model, Baxter has announced plans to separate into two companies, one focused on biopharmaceuticals and the other on medical products. The transaction will be effected via a tax-free distribution to Baxter shareholders of a new publicly traded stock in the new biopharmaceuticals company and is expected to complete by mid-year 2015, subject to certain approvals. The spin-off is in similar vein to the January 2013 separation of AbbVie from Abbott and comes at a time when a number of large pharmaceutical companies are streamlining their operations.