Baxter to Form Cancer Treatment Venture

Baxter International Inc. said it will spin off an Irvine-based medical research unit, forming a new venture with a small Delaware biotech company to develop treatments for cancer, AIDS and other diseases. Wilmington-based Vimrx Pharmaceuticals would own a controlling stake in the new company, which would be based in Irvine. The new company, which has yet to be named, would receive a $30-million infusion--$20 million from Baxter and $10 million from Vimrx--to fund research and development of various treatments. The new firm would seek to develop technologies for preparing cells to treat various diseases, as alternatives or adjuncts to drugs, said John Osth, who is expected to take a leadership role in the new company. Executives said they have yet to decide the fate of the division’s 130 employees, including 85 in Irvine.