Baxter International Inc. (NYSE: BAX), is an American health care company with headquarters in Deerfield, Illinois.[3] The company primarily focuses on products to treat hemophilia, kidney disease, immune disorders and other chronic and acute medical conditions. The company had 2009 sales of $12.6 billion, across three manufacturing divisions: BioScience (producing recombinant and blood plasma proteins to treat hemophilia and other bleeding disorders; plasma-based therapies to treat immune deficiencies and other chronic and acute blood-related conditions; products for regenerative medicine; and vaccines); Medication Delivery (producing intravenous solutions and other products used in the delivery of fluids and drugs to patients, as well as inhalation anesthetics and contract manufacturing services); and Renal (providing products to treat end-stage renal disease, or irreversible kidney failure, including solutions and other products for peritoneal dialysis and hemodialysis).[4]
The company was involved in several controversies. In 2001, malfunctioning dialysis machines resulted in several deaths; in 2008 the company supplied contaminated heparin; in 2009 lethal H5N1 avian flu virus was delivered to laboratories across Europe mixed with seasonal influenza vaccines; also, the company was charged with excessive billing of Kentucky Medicaid.
Baxter International is recognized leader in environmental controls and commitments.
Baxter International Inc. (Baxter), incorporated in 1931, is a global, diversified healthcare company. The Company, through its subsidiaries, develops, manufactures and markets products that save and sustain the lives of people with hemophilia, immune disorders, infectious diseases, kidney disease, trauma, and other chronic and acute medical conditions. It operates in three segments: The BioScience, Medication Delivery and Renal segments. Baxter is engaged in the medical devices, pharmaceuticals and biotechnology to create products that advance patient care worldwide. These products are used by hospitals, kidney dialysis centers, nursing homes, rehabilitation centers, doctors’ offices, clinical and medical research laboratories, and by patients at home under physician supervision. Baxter manufactures products in 27 countries and sells them in more than 100 countries.
BioScience
The BioScience business processes recombinant and plasma-based proteins to treat hemophilia and other bleeding disorders; plasma-based therapies to treat immune deficiencies, alpha-1 antitrypsin deficiency, burns and shock, and other chronic and acute blood-related conditions; products for regenerative medicine. These include biosurgery products and select vaccines.
Medication Delivery
The Medication Delivery business manufactures intravenous (IV) solutions and administration sets, premixed drugs and drug-reconstitution systems, pre-filled vials and syringes for injectable drugs, IV nutrition products, infusion pumps, and inhalation anesthetics. The business also provides products and services related to pharmacy compounding, drug formulation and packaging technologies. In October 2010, the Company announced an agreement providing for the divestiture of its United States generic injectables business to Hikma Pharmaceuticals PLC.
Renal
Renal. The Renal business provides products to treat end-stage renal disease, or irreversible kidney failure. The business manufactures solutions and other products for peritoneal dialysis (PD), a home-based therapy, and also distributes products for hemodialysis, which is generally conducted in a hospital or clinic. In October 2010, the Company announced the combination of its Medication Delivery and Renal businesses into a single global business unit, Medical Products.
Two years later, Baxter acquired Caremark Inc., an alternative site health care business that provided products and services for use outside of hospitals. The purchase doubled Baxter's holdings in that segment, which soon became its fastest-growing business. However, Baxter's traditional hospital customers soon began to resent the threat Caremark posed to their own home health care programs. Moreover, in 1991 a criminal investigation of Caremark for alleged Medicare kickbacks was initiated. Baxter decided to spin Caremark off to shareholders in 1992.
Rumors that the Baxter-American merger had resulted in difficulties between the divergent corporate cultures seemed to be confirmed in ensuing years, as the firm entered a state of frequent restructuring. Early in 1990, the company announced the largest restructuring in its history, involving the closing of 21 plants, divesting marginal businesses, and laying off about ten percent of the work force. The 1990 retrenchment focused largely on Baxter's hospital supply businesses, and the revamp two years later eliminated its alternative site health care business.
During this time, Baxter lost several lucrative contracts, having gained a reputation as a high-cost, high-priced distributor whose practices tended to anger and frustrate hospital purchasing managers. According to an October 1993 Health Industry Today article, Baxter's contract with Premier Health Alliance Inc., which represented $32 million in 1992 sales, was not renewed in 1993. Furthermore, the Veterans Administration proposed to exclude Baxter from bidding on and being awarded contracts for the next year, following allegations by the VA that Baxter knowingly misled and provided false information to the government agency's officials. In a conciliatory measure, Baxter accelerated programs to revamp its sales structure and lines of authority as well as slash executive pay.
In spite of the firm's efforts to improve its reputation, damaging information continued to emerge. In March 1993, Loucks admitted that Baxter had violated laws against aiding the Arab League's boycott of Israel when it sold its Travenol Laboratories Ltd. operations in Israel and entered into a joint venture with the Syrian army. Asserting that such illegal actions were inadvertent, the corporation nevertheless plead guilty to federal charges and agreed to pay $6.5 million in fines. Also that year, Baxter was implicated in a lawsuit brought by hemophiliacs infected by HIV-tainted clotting agents, and took a $700 million charge for divesting some divisions and reorganizing its diagnostics subsidiary. At year's end, President James Tobin quit, and Baxter's stock plunged to a four-year low. Moreover, Baxter's proposed merger with third-ranking Stuart Medical Inc. was terminated, and Stuart quickly engaged another suitor, Owens & Minor Inc. Their combined operations promised to threaten Baxter's top position in medical/surgical supply, as the new company would follow Baxter by only about $300 million in annual revenues.
Loucks's 1993 letter to shareholders acknowledged that the company's 'earnings and stock price [had] not performed well,' and announced 1993 losses of $268 million. Nevertheless, sales at Baxter had increased every year from 1988 through 1993, with net sales increasing over $400 million from 1992 to 1993. Loucks vowed to 'achieve the potential that exists for Baxter International' by emphasizing service, international growth, and technological innovation through its new 'Network 2000,' a $400 million plan to expand, consolidate, and modernize facilities and operations.
Principal Subsidiaries: Baxter Diagnostics Inc.; Baxter Export Corporation; Baxter Vascular Systems; Bentley; Biotech Group; Clinical Alternate Site; Clintec Nutrition Company; Dietary Products; Edwards Critical Care; Edwards CVS; Hospital Supply; Hospitex; Interventional Cardiology; I.V. Systems; Novacor; Renal; Scientific Products; Scientific Products Industrial and Life Sciences; Surgical Group; Valuelink Business Center
OVERALL
Beta: 0.53
Market Cap (Mil.): $32,648.09
Shares Outstanding (Mil.): 573.78
Annual Dividend: 1.24
Yield (%): 2.18
FINANCIALS
BAX Industry Sector
P/E (TTM): 16.28 5.56 40.56
EPS (TTM): 31.55 -- --
ROI: -- 2.56 1.91
ROE: -- 3.75 2.49
Statistics:
Public Company
Incorporated: 1931
Employees: 60,400
Sales: $8.88 billion
Stock Exchanges: New York
SICs: 2834 Pharmaceutical Preparations; 3841 Surgical and Medical Instruments; 5122 Drugs, Proprietaries and Sundries; 5047 Medical and Hospital Equipment; 3845 Electromedical Equipment; 3842 Surgical Appliances and Supplies; 2830 Drugs
Name Age Since Current Position
Parkinson, Robert 60 2004 Chairman of the Board, Chief Executive Officer
Hombach, Robert 45 2011 Chief Financial Officer, Vice President
Riedel, Norbert 53 2001 Corporate Vice President, Chief Scientific Officer
Scharf, David 43 2009 Corporate Vice President and General Counsel
Baughman, Michael 46 2006 Corporate Vice President, Controller
Mason, Jeanne 55 2006 Corporate Vice President - Human Resources
Gatling, James 61 1996 Corporate Vice President - Manufacturing
Davis, Robert 44 2010 Corporate Vice President and President - Medical Products
Hantson, Ludwig 48 2010 Corporate Vice President and President - BioScience
Batchelor, Phillip 49 2010 Corporate Vice President - Quality
Saccaro, James 2011 Treasurer
Boomer, Walter 72 2008 Lead Independent Director
Stallkamp, Thomas 64 2008 Independent Director
Fosler, Gail 63 2001 Independent Director
Martin, Joseph 71 2002 Independent Director
Gavin, James 65 2003 Independent Director
Storm, Kornelis 69 2003 Independent Director
Forsyth, John 63 2003 Independent Director
Stroucken, Albert 63 2004 Independent Director
Devitt, Blake 64 2005 Independent Director
Shapazian, Carole 67 2003 Independent Director
Hellman, Peter 61 2005 Independent Director
Hockmeyer, Wayne 66 2007 Independent Director
Address:
One Baxter Parkway
Deerfield, Illinois 60015-4633
U.S.A.
The company was involved in several controversies. In 2001, malfunctioning dialysis machines resulted in several deaths; in 2008 the company supplied contaminated heparin; in 2009 lethal H5N1 avian flu virus was delivered to laboratories across Europe mixed with seasonal influenza vaccines; also, the company was charged with excessive billing of Kentucky Medicaid.
Baxter International is recognized leader in environmental controls and commitments.
Baxter International Inc. (Baxter), incorporated in 1931, is a global, diversified healthcare company. The Company, through its subsidiaries, develops, manufactures and markets products that save and sustain the lives of people with hemophilia, immune disorders, infectious diseases, kidney disease, trauma, and other chronic and acute medical conditions. It operates in three segments: The BioScience, Medication Delivery and Renal segments. Baxter is engaged in the medical devices, pharmaceuticals and biotechnology to create products that advance patient care worldwide. These products are used by hospitals, kidney dialysis centers, nursing homes, rehabilitation centers, doctors’ offices, clinical and medical research laboratories, and by patients at home under physician supervision. Baxter manufactures products in 27 countries and sells them in more than 100 countries.
BioScience
The BioScience business processes recombinant and plasma-based proteins to treat hemophilia and other bleeding disorders; plasma-based therapies to treat immune deficiencies, alpha-1 antitrypsin deficiency, burns and shock, and other chronic and acute blood-related conditions; products for regenerative medicine. These include biosurgery products and select vaccines.
Medication Delivery
The Medication Delivery business manufactures intravenous (IV) solutions and administration sets, premixed drugs and drug-reconstitution systems, pre-filled vials and syringes for injectable drugs, IV nutrition products, infusion pumps, and inhalation anesthetics. The business also provides products and services related to pharmacy compounding, drug formulation and packaging technologies. In October 2010, the Company announced an agreement providing for the divestiture of its United States generic injectables business to Hikma Pharmaceuticals PLC.
Renal
Renal. The Renal business provides products to treat end-stage renal disease, or irreversible kidney failure. The business manufactures solutions and other products for peritoneal dialysis (PD), a home-based therapy, and also distributes products for hemodialysis, which is generally conducted in a hospital or clinic. In October 2010, the Company announced the combination of its Medication Delivery and Renal businesses into a single global business unit, Medical Products.
Two years later, Baxter acquired Caremark Inc., an alternative site health care business that provided products and services for use outside of hospitals. The purchase doubled Baxter's holdings in that segment, which soon became its fastest-growing business. However, Baxter's traditional hospital customers soon began to resent the threat Caremark posed to their own home health care programs. Moreover, in 1991 a criminal investigation of Caremark for alleged Medicare kickbacks was initiated. Baxter decided to spin Caremark off to shareholders in 1992.
Rumors that the Baxter-American merger had resulted in difficulties between the divergent corporate cultures seemed to be confirmed in ensuing years, as the firm entered a state of frequent restructuring. Early in 1990, the company announced the largest restructuring in its history, involving the closing of 21 plants, divesting marginal businesses, and laying off about ten percent of the work force. The 1990 retrenchment focused largely on Baxter's hospital supply businesses, and the revamp two years later eliminated its alternative site health care business.
During this time, Baxter lost several lucrative contracts, having gained a reputation as a high-cost, high-priced distributor whose practices tended to anger and frustrate hospital purchasing managers. According to an October 1993 Health Industry Today article, Baxter's contract with Premier Health Alliance Inc., which represented $32 million in 1992 sales, was not renewed in 1993. Furthermore, the Veterans Administration proposed to exclude Baxter from bidding on and being awarded contracts for the next year, following allegations by the VA that Baxter knowingly misled and provided false information to the government agency's officials. In a conciliatory measure, Baxter accelerated programs to revamp its sales structure and lines of authority as well as slash executive pay.
In spite of the firm's efforts to improve its reputation, damaging information continued to emerge. In March 1993, Loucks admitted that Baxter had violated laws against aiding the Arab League's boycott of Israel when it sold its Travenol Laboratories Ltd. operations in Israel and entered into a joint venture with the Syrian army. Asserting that such illegal actions were inadvertent, the corporation nevertheless plead guilty to federal charges and agreed to pay $6.5 million in fines. Also that year, Baxter was implicated in a lawsuit brought by hemophiliacs infected by HIV-tainted clotting agents, and took a $700 million charge for divesting some divisions and reorganizing its diagnostics subsidiary. At year's end, President James Tobin quit, and Baxter's stock plunged to a four-year low. Moreover, Baxter's proposed merger with third-ranking Stuart Medical Inc. was terminated, and Stuart quickly engaged another suitor, Owens & Minor Inc. Their combined operations promised to threaten Baxter's top position in medical/surgical supply, as the new company would follow Baxter by only about $300 million in annual revenues.
Loucks's 1993 letter to shareholders acknowledged that the company's 'earnings and stock price [had] not performed well,' and announced 1993 losses of $268 million. Nevertheless, sales at Baxter had increased every year from 1988 through 1993, with net sales increasing over $400 million from 1992 to 1993. Loucks vowed to 'achieve the potential that exists for Baxter International' by emphasizing service, international growth, and technological innovation through its new 'Network 2000,' a $400 million plan to expand, consolidate, and modernize facilities and operations.
Principal Subsidiaries: Baxter Diagnostics Inc.; Baxter Export Corporation; Baxter Vascular Systems; Bentley; Biotech Group; Clinical Alternate Site; Clintec Nutrition Company; Dietary Products; Edwards Critical Care; Edwards CVS; Hospital Supply; Hospitex; Interventional Cardiology; I.V. Systems; Novacor; Renal; Scientific Products; Scientific Products Industrial and Life Sciences; Surgical Group; Valuelink Business Center
OVERALL
Beta: 0.53
Market Cap (Mil.): $32,648.09
Shares Outstanding (Mil.): 573.78
Annual Dividend: 1.24
Yield (%): 2.18
FINANCIALS
BAX Industry Sector
P/E (TTM): 16.28 5.56 40.56
EPS (TTM): 31.55 -- --
ROI: -- 2.56 1.91
ROE: -- 3.75 2.49
Statistics:
Public Company
Incorporated: 1931
Employees: 60,400
Sales: $8.88 billion
Stock Exchanges: New York
SICs: 2834 Pharmaceutical Preparations; 3841 Surgical and Medical Instruments; 5122 Drugs, Proprietaries and Sundries; 5047 Medical and Hospital Equipment; 3845 Electromedical Equipment; 3842 Surgical Appliances and Supplies; 2830 Drugs
Name Age Since Current Position
Parkinson, Robert 60 2004 Chairman of the Board, Chief Executive Officer
Hombach, Robert 45 2011 Chief Financial Officer, Vice President
Riedel, Norbert 53 2001 Corporate Vice President, Chief Scientific Officer
Scharf, David 43 2009 Corporate Vice President and General Counsel
Baughman, Michael 46 2006 Corporate Vice President, Controller
Mason, Jeanne 55 2006 Corporate Vice President - Human Resources
Gatling, James 61 1996 Corporate Vice President - Manufacturing
Davis, Robert 44 2010 Corporate Vice President and President - Medical Products
Hantson, Ludwig 48 2010 Corporate Vice President and President - BioScience
Batchelor, Phillip 49 2010 Corporate Vice President - Quality
Saccaro, James 2011 Treasurer
Boomer, Walter 72 2008 Lead Independent Director
Stallkamp, Thomas 64 2008 Independent Director
Fosler, Gail 63 2001 Independent Director
Martin, Joseph 71 2002 Independent Director
Gavin, James 65 2003 Independent Director
Storm, Kornelis 69 2003 Independent Director
Forsyth, John 63 2003 Independent Director
Stroucken, Albert 63 2004 Independent Director
Devitt, Blake 64 2005 Independent Director
Shapazian, Carole 67 2003 Independent Director
Hellman, Peter 61 2005 Independent Director
Hockmeyer, Wayne 66 2007 Independent Director
Address:
One Baxter Parkway
Deerfield, Illinois 60015-4633
U.S.A.
Last edited: