Overview of Baxter
Baxter International (BAX) is a leading medical technology company in the United States. It provides products and services through its Hospital Products and Renal segments. Hospital Products is comprised of the IPS (integrated pharmacy solutions) division along with fluid systems, surgical care, and biosurgery. Hospital Products had sales of $1.6 billion in 2Q17, which represents an operational growth of 4.0%. IPS contributed $568.0 million to Hospital Products’ sales. In 2017, the IPS segment is expected to register operational sales growth of 4.0%–5.0%.
Baxter International is focused on strengthening its position in the IPS business. The company has made a number of strategic low-margin business exits. It has also recently acquired Claris Injectables and entered into some key collaborations and partnerships.
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Partnerships and collaborations
On August 22, 2017, Baxter International entered into a collaboration with ASPEN (American Society for Parenteral and Enteral Nutrition) and launched SmartPN. SmartPN refers to the collaboration initiative to provide educational tools to healthcare professionals for using PN (parenteral nutrition) therapy appropriately. Parenteral nutrition refers to a method for getting nutrition into the body through the veins. The collaboration will help increase awareness about nutrition care and expand its reach to more patients in need of PN therapy.
In June 2017, Baxter International announced an agreement with Dorizoe Lifesciences, a global contract research and development organization. The collaboration accelerated the company’s efforts toward its goal of establishing its leadership in the generic injectables market where it faces competition from Pfizer (PFE), Mylan (MYL), and Novartis (NVS). The deal enables accelerated development of more than 20 generic injectables.
With the same goal of strengthening its generic injectables market position, Baxter entered into a partnership with ScinoPharm for the development and manufacturing of five generic oncology injectable therapies. The deal also includes an option for the addition of 15 more injectable molecules to the current list in the future. According to the deal, Baxter International will have the commercialization rights for all these products, which are estimated to be launched starting in 2020.