uploads///hospital products

Innovation Drove Baxter’s Hospital Products Sales in 1Q16


May. 2 2016, Updated 11:07 a.m. ET

1Q16 performance

Baxter International (BAX) reported ~$2.4 billion in total revenues in 1Q16. Of that, ~$1.5 billion was contributed by the company’s Hospital Products business. The segment accounted for about 62% of Baxter’s total revenues. These sales figures represent an ~4% YoY (year-over-year) increase in 1Q16 on an operational basis.

However, the sales were negatively impacted by the continued foreign exchange impact. Additionally, in 1Q16, Baxter did not register any impact of competition surrounding US cyclophosphamide on the IPS (integrated pharmacy solutions) segment sales, as substantiated by the US cyclophosphamide sales of around $60 million in the equivalent quarter to that generated in the previous quarter.

hospital products

The Fluid Systems franchise witnessed strong YoY operational sales growth of approximately 11%. This compares to the IPS franchise YoY sales growth of ~3% and the decline of ~2% in the Surgical Care franchise revenues.

Article continues below advertisement

Key growth drivers

Baxter International (BAX) is a leading medical devices manufacturer with wide geographical presence and a broad portfolio of hospital products, leading the company’s growth primarily through innovation. The recently relaunched SIGMA SPECTRUM infusion pump and demand for IV (intravenous) solutions in the United States were the primary contributors to the fluid systems franchise sales.

In the IPS (integrated pharmacy solutions) franchise, 1Q16 sales mainly grew due to the broadening of the product portfolio through the launch of NUMETA G13 and Vancomycin saline. Vancomycin saline is a premixed drug used in the Baxter’s Galaxy flexible container, which is a drug delivery system.

NUMETA G13 is a nutrition product for the preterm infants (born before 37 weeks of gestation) that the company plans to launch in 20 countries in 2016. Although the Surgical Care segment sales declined in 1Q16 due to lower biosurgery sales, innovation is expected to drive segment growth in the near future.

Some of Baxter’s major competitors include Becton Dickinson (BDX), Thermo Fisher Scientific (TMO), and CR Bard (BCR). Investors seeking exposure to Baxter International can invest in the iShares MSCI USA Minimum Volatility ETF (USMV). BAX accounts for approximately 0.53% of USMV’s total holdings.


More From Market Realist

  • CONNECT with Market Realist
  • Link to Facebook
  • Link to Twitter
  • Link to Instagram
  • Link to Email Subscribe
Market RealistLogo
Do Not Sell My Personal Information

© Copyright 2021 Market Realist. Market Realist is a registered trademark. All Rights Reserved. People may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.