NEW YORK (TheStreet) -- Shares of Baxter International Inc (BAX) were climbing, up 0.53% to $72.02 in early afternoon trading on Thursday, after Jim Cramer explained why he thinks the company has "real value" on CNBC's Mad Money show Wednesday night.
He added that it has been a tough year for Baxter, but a turnaround may be near now that the company is set to spin off its bioscience division.
"Once Baxter spins off its biosciences unit, it will be a much cleaner and simpler story," Cramer said.
Baxter announced it will spin off its bioscience division as a company called Baxalta, which will trade under the symbol "BXLT" on the New York Stock Exchange.
Baxter will retain a 19.5% stake in Baxalta after the spin off, which is scheduled to be completed by July 1.
Once the spin-off is complete, Cramer noted that the new Baxter will be easy to value.
It will be known as the medical supplies company, which is also easier to understand than the current hybrid company of medial supplies and biotech, Cramer explained.
Deerfield, Ill.-based Baxter is a global, diversified healthcare company that develops, manufactures and markets products that sustain the lives of people with hemophilia, immune disorders, infectious diseases, kidney disease, trauma, and other chronic and acute medical conditions.