Healthy Skepticism Library item: 12826

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Publication type: news

Baxter International Shares Decline
Yahoo Finance 2008 Feb 14
http://biz.yahoo.com/ap/080214/baxter_out_of_the_gate.html?.v=2

Abstract:

Heparin Probe Weighs on Baxter Stock; Drug Brought in $10 Million in 2007 Revenue

Full text:

Shares of Baxter International Inc. fell Thursday after news of an investigation into manufacturing issues with the company’s blood thinner heparin.
The Food and Drug Administration is investigating a Chinese factory that makes one ingredient of the drug, along with Baxter’s New Jersey facility, to find the source of hundreds of allergic reactions and four deaths linked to heparin.

Baxter recalled nine production lots of heparin last month, but said the drug has little impact on its results.

“Sales of this low margin product totaled approximately $10 million in 2007,” said Baxter Chief Financial Officer Rob Davis in a statement. That was less than 0.1 percent of the company’s $11.26 billion in sales for the year.

Shares fell $1.39, or 2.2 percent, to $60.47.

Analysts said Medicines Co.‘s drug Angiomax is superior to heparin in catheter procedures, making that drug significantly more popular. Parsippany, N.J.-based Medicines expects to gain $320 million to $335 million in Angiomax sales in 2008.

“The recall of heparin by Baxter is not expected to impact Angiomax usage significantly,” said Leerink Swann and Company analyst Joseph Schwartz. “While heparin is difficult to work with and to manufacture, it continues to remain a mainstay of medicine.”