Bayer Leveraged its $6 billion in debt to create the Bayers next generation of medical devices.
The biotech company announced that its medical device manufacturing business was valued at $2 billion.
It will have $4 billion in cash, $500 million in cash and $400 million in marketable securities.
The announcement was made at the annual Bayer Global Investors Conference in Beijing.
The company will also report a net loss for the first time in five years, the Wall Street Journal reported.
The deal with Bayer, which was completed in January 2018, will give the company a global market share of nearly 14%.
Bayer will take on $1.3 billion of debt and $2 million of debt in the initial public offering.
It expects the IPO to raise $2 to $3 billion.
Bayer CEO Peter Biederman has said that the company will focus on the next generation products that will help it to better protect itself against bioterrorism threats.
Biedermans goal is to develop a new class of medical technologies that will make medical devices more effective and cost-effective.
In 2018, Bayer launched a $1 billion research and development fund.
In 2019, it invested $1 in an unnamed pharmaceutical company.
The $1 million was later used to develop several new drugs.
In 2020, Bayer invested $500,000 in a medical device maker.
In 2021, Bayer paid $400,000 for a company that makes biotechnology-based drugs.
Bayer will pay a $5 billion cash payment to the federal government in the 2021 fiscal year.
Bayer said that it has been working on a biotechnology solution for a long time.
In a statement, Biederemans spokesperson said, “Bayer is proud to announce a new investment to accelerate our plans to improve our business and strengthen our leadership in the medical device and medical device-related industries.”
The new $2 in debt payment comes on the heels of the $2bn in debt that Bayer received from the U.S. Department of Energy in 2016.
In 2017, the company was forced to lay off more than 2,000 employees.
The layoffs led to a $2,400 million stock buyback.
The Bayer stock price has gained about 9% this year.
The Bayer stock price is now up about 6% this week.
The stock price of the biotechnology company was up 1.8% last year.