(Corrects year-earlier net adjusted income figure in paragraph 2 to $659 million from $639 million. Also corrects year-ago per-share figure to $1.20 from $1.16)

July 17 (Reuters) - Medical device and drug maker Baxter International Inc reported higher-than-expected quarterly earnings and revenue, helped by surging sales in its medical products division.

Net adjusted income rose to $692 million, or $1.26 per share in the second quarter ended June 30, from $659 million, or $1.20 per share, a year earlier.

Revenue rose about 16 percent to $4.26 billion.

Analysts on average had expected earnings of $1.22 per share, excluding items, on revenue of $4.12 billion, according to Thomson Reuters I/B/E/S.

The medical products business, which includes intravenous fluid systems, dialysis, biosurgery and some specialty pharmaceuticals such as anesthesia and nutrition, rose about 24 percent to $2.51 billion.

Baxter's biotech business, which includes plasma-based proteins to treat hemophilia and other bleeding disorders, jumped about 7 percent to $1.75 billion.

The company said in March it planned to spin off its biotechnology operations into a publicly traded company by the middle of the next year and focus on its core medical technology business.

Baxter also tightened its full-year adjusted profit forecast on Thursday to $5.10-$5.20 per share from $5.05-$5.25.

Analysts on average were expecting earnings of $5.15 per share.

Deerfield, Illinois-based Baxter's stock closed at $76.60 on the New York Stock Exchange on Wednesday.

(Reporting by Natalie Grover in Bangalore; Editing by Maju Samuel)