Baxter International
 | |
| Company type | Public (NYSE: BAX) |
|---|---|
| Founded | 1931 |
| Headquarters | Deerfield, Illinois |
Key people | Robert L. Parkinson Jr., Chairman, CEO and President[1] |
| Products | Medical supplies to treat hemophilia, kidney disease and provide intravenous therapy |
| Revenue | 15,113,000,000 United States dollar (2022)  |
| −1,943,000,000 United States dollar (2022) | |
| −2,433,000,000 United States dollar (2022) | |
Number of employees | 48,500 |
| Website | www.Baxter.com |
Baxter International Inc. (NYSE: BAX), is an American health care company with headquarters in Deerfield, Illinois. The company primarily focuses on products to treat hemophilia, kidney disease, immune disorders and other chronic and acute medical conditions. The company claims to have world-wide sales of $12.3 billion in sales, across three manufacturing divisions (BioScience, producing blood plasma proteins; Medication Delivery producing intravenous therapy products and liquids; and Renal producing equipment for dialysis and the treatment of kidney disorders).[2] The company is also involved in the production of a vaccine for the H1N1 influenza.
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 the wrong strain of H5N1 avian flu virus was transported to laboratories across Europe and the company was charged with excessive billing of Kentucky Medicaid.
Baxter International is a leader in environmental controls and commitments, recognized for their excellence in the area.
History
Baxter International was founded in 1931 by Davis Baxter, a medical doctor, as a manufacturer and distributor of intravenous therapy solutions. Baxter's interest was bought out in 1935 by Ralph Falk, who established a research and development function. In 1939 the company developed a vacuum-type collection container, extending the shelf life of blood from hours to weeks. In 1953 William Graham became the company's chief executive officer, and in 1954 expanded operations outside of the United States by opening an office in Belgium. In 1956 Baxter International introduced the first functioning artificial kidney, and in 1971 became a member of the Fortune 500. Vernon Loucks became president and CEO in 1980; throughout the 1980s and 1990s the company expanded to deliver a wider variety of products and services (including vaccines, a greater variety of blood products) through acquisitions of various companies. Sales and production facilities also expanded throughout the world.[3] In 1993 the company pled guilty to a felony in relation to an anti-boycott law in the United States[4] and in 1996, the company entered into a four-way, $640 million settlement with haemophiliacs 1999 in relation to blood clotting concentrates that were infected with HIV.[5] Under pressure from shareholders due to poor performance and an unsuccessful merger, Loucks was forced to resign[4] and was replaced by Harry Kraemer, who was replaced by Robert Parkinson in 2004.[3]
Environmental activities
Baxter International is recognized as a leading company in environmental performance and reporting, having an explicit focus on environmental issues since 1976; actions included an environmental policy and manual, a series of audits, regular environmental conferences, efforts to prevent and clean up site contamination and staff dedicated to environmental improvements. In 1997, a report produced by the company indicated that changes made to reduce environmental impacts generated savings that exceeded their cost, producing a net profit. Reporting was company-wide, with a variety of aggregation and reporting, including on the company's internet and intranet sites.[6] The company was an early joiner in the "green and greedy" movement, which aims to lessen the environmental impacts of manufacturing its products while saving the company money.[7] In 2009 the company announced it had reached a variety of its environmentally-friendly goals, and that it would continue to try to reduce waste, emissions, energy use and environmental incidents over the coming years.[8]
Structure
| Name | Focus | 2008 sales (In billions) | Percentage |
|---|---|---|---|
| BioScience | Vaccines and biopharmaceuticals | $5.3 | 44% |
| Medication Delivery | Intravenous solutions and equipment | $4.6 | 37% |
| Renal | Peritoneal dialysis | $2.3 | 19% |
Sales are primarily in the United States (41%) and Europe (35%), with a similar breakdown of regional employees (42% and 29% respectively. In 2008, Baxter International claimed to have spent $868 million on research and development.[9]
H1N1 vaccine
In June 2009, Baxter International announced it expected to have the first commercial vaccine for the H1N1 ("swine flu") influenza as early as July of the same year. The company was one of several working with the World Health Organization and United States Centers for Disease Control and Prevention on the vaccine, and uses a cell-based rather than egg-based technology that allows a shorter production time.[11]
Acquisitions
In June 2009, Baxter International announced an agreement to acquire hemofiltration equipment from Edwards Lifesciences Corporation in the third quarter of the year, pending regulatory approval.[12]
Controversies
Dialyzer crisis
On August 15th, 2001, two elderly patients in Spain died within hours of receiving dialysis from Baxter products. Eventually 51 more patients would die; though the cause was unclear, the company issued a world-wide recall of two lines of filters, the sole common link between all the equipment used by the patients. Harry Kraemer, the company president at the time, apologized for the errors, shut down the factory producing filters, alerted competitors of the issue and took a 40% pay cut along with a 20% cut for other executives.[13] The company's earnings dropped by $189 million as a result of the issues. The company took quick action to reduce the impact of the event and prevent future recurrence and as a result suffered minimal damage to its reputation.[10]
2008 Chinese heparin contamination
In 2008, the quality of blood thinning products produced by Baxter was brought into question when they were linked to 19 deaths in the United States.[14] Upon inspection one of the raw ingredients used by Baxter were found to be contaminated - between 5 and 20 percent - with a substance that was similar, but not identical, to the ingredient itself. The company initiated a voluntary recall, temporarily suspended the manufacture of heparin, and launched an investigation.
Investigation into the contamination has focused on raw heparin produced by Changzhou Scientific Protein Laboratories, a China based branch of Scientific Protein Laboratories, based in Waunakee, Wisconsin. Due to procedural errors Changzhou SPL's facilities was never subject to an inspection by US FDA official, as required by FDA rules. The factory's products were also never certified as safe for use in pharmaceutical products by Chinese FDA officials as Changzhou SPL was itself registered as a chemical company and not a drugs manufacturer.[15][16][17] Though Baxter was first to recall heparin because of increased adverse reactions, after the contaminant was identified and testing protocols were shared with other manufacturers globally, over a dozen other companies in nearly a dozen countries issued recalls, which linked back to certain supply points in China.
2009 avian flu contamination
In early 2009 supplies of Influenza A virus subtype H5N1 provided by Baxter International were erroneously sent to a series of European laboratories. The deadly H5N1 strain was mixed with the less harmful H3N2 subtype of the seasonal flu virus, and was detected after it killed test animals more quickly than expected in a lab in the Czech Republic. Though there was a risk of serious consequences,[18] Baxter claimed the controls over the distribution of the virus were stringent and there was little chance of the virus harming humans.[19]
Kentucky settlement
On July 2nd, 2009, Kentucky Attorney General Jack Conway announced a settlement between the state and Baxter Healthcare Corporation, a subsidiary of Baxter International, worth $2 million. The company had been inflating the cost of the intravenous drugs sold to Kentucky Medicaid, at times as much as 1300%.[20]
References
- ^ "Company Leadership". Baxter International. Retrieved 2009-07-07.
- ^ "Corporate Overview". Baxter International. Retrieved 2009-06-14.
- ^ a b "History". Baxter International. Retrieved 2009-07-08.
- ^ a b Mintzberg, Henry (2004). Managers Not MBAs: A Hard Look at the Soft Practice of Managing and Management Development. San Francisco, Calif: Berrett-Koehler Publishers. pp. 115-6. ISBN 1-57675-275-5.
- ^ Feldman, EA (1999). Blood feuds: AIDS, blood, and the politics of medical disaster. Oxford University Press. pp. 49-50, 320. ISBN 0195131606.
{{cite book}}: Unknown parameter|coauthors=ignored (|author=suggested) (help) - ^ Bennett M; James P (1999). "The Evolution of Integrated Environmental Performance Evaluation and Reporting". Sustainable Measures: Evaluation and Reporting of Environmental and Social Performance. Greenleaf Pubns. pp. 253-282. ISBN 1-874719-16-0.
{{cite book}}: Unknown parameter|editors=ignored (|editor=suggested) (help)CS1 maint: multiple names: authors list (link) - ^ Adelson, G. Environment: An Interdisciplinary Anthology. Yale University Press. pp. 254-5. ISBN 0300110774.
{{cite book}}: Unknown parameter|coauthors=ignored (|author=suggested) (help) - ^ "Baxter Cuts GHG Emissions by 21%". Environmentalleader.com. 2009-06-19. Retrieved 2009-07-03.
- ^ a b "Corporate overview". Baxter International. Retrieved 2009-07-08.
- ^ a b Davis, JA (2003). "Purifying an image: Baxter International and the Dialyzer Crisis". In Feigenbaum AV (ed.). The power of management capital: utilizing the new drivers of innovation, profitability, and growth in a demanding global economy. McGraw-Hill Professional. pp. 349-364. ISBN 0070217335.
- ^ "Baxter to release flu vaccine in July". United Press International. 2009-06-13. Retrieved 2009-07-02.
- ^ "Baxter to Acquire Continuous Renal Replacement Therapy Business from Edwards Lifesciences". Press release. 2009-06-30. Retrieved 2009-07-03.
- ^ Ind, Nicholas (2003). Beyond branding: how the new values of transparency and integrity are changing the world of brands. London: Kogan Page. pp. 7. ISBN 0-7494-4399-5.
- ^ "Heparin's Deadly Side Effects". Time magazine. 2008. Retrieved 2008-11-16.
{{cite news}}: Cite has empty unknown parameter:|coauthors=(help) - ^ "Contaminant Found in Blood Thinner", Washington Post (Online edition), 2008-03-05
- ^ "Baxter probe focuses on US-owned China plant - WSJ", Reuters, 2008-02-15
- ^ "China Washes Hands on Heparin Purity", Wall Street Journal (Online edition) 2008-02-27
- ^ "Baxter admits flu product contained live bird flu virus". The Canadian Press. 2009-02-27. Retrieved 2009-07-04.
{{cite news}}:|first=missing|last=(help) - ^ Jack, A (2009-03-16). "WHO mulls stricter transport of bio products". Financial Times. Retrieved 2009-06-16.
- ^ Tracy, B (2009-07-03). "Conway Announces Multi-Million Dollar Settlement With Drug Company". Kentucky Post. E. W. Scripps Company. Retrieved 2009-07-03.