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Baxter International

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Baxter International Inc.
Company typePublic
NYSE: BAX
S&P 500 Component
IndustryMedical equipment
Founded1931
HeadquartersDeerfield, Illinois, U.S.
Key people
José E. Almeida, (Chairman & CEO)
Jay Saccaro, (CFO)
ProductsMedical supplies to treat hemophilia, kidney disease and provide intravenous therapy
RevenueUS$16.3B (FY 2014)[1]
−1,943,000,000 United States dollar (2022) Edit this on Wikidata
US$2.012B (FY 2014)[1]
Total assetsUS$25.9B (FY 2014)[1]
Total equityUS$8.5B (FY 2014)[1]
Number of employees
61,500
Websitehttps://www.baxter.com

Baxter International Inc. is a global healthcare company with headquarters in Deerfield, Illinois.[2] The company primarily focuses on products to treat kidney disease, and other chronic and acute medical conditions. The company had 2015 sales of $10 billion across two businesses: hospital products and renal. Baxter’s Hospital Products business manufactures products used in the delivery of fluids and drugs to patients across the continuum of care, including IV solutions and administration sets, premixed drugs and drug-reconstitution systems, IV nutrition products, infusion pumps and inhalation anesthetics. Its renal portfolio addresses the needs of patients with kidney failure and kidney disease, incorporating innovative technologies and therapies for peritoneal dialysis, in-center and home hemodialysis, continuous renal replacement therapy, multi-organ extracorporeal support therapy and additional dialysis services.[1]

History

For more than 80 years, Baxter has introduced significant medical innovations, including the first commercially produced intravenous (IV) solutions and the first home-based dialysis system as an alternative to hemodialysis in a hospital or clinic. Baxter has been highly innovative in providing healthcare solutions to unmet needs through scientific advancement as well as strategic acquisitions and partnerships.

Baxter International was founded in 1931 by Donald 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 1954, the company 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. 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.[7]

In July 2014, Baxter announced that it was exiting the vaccines business—divesting its commercial vaccine portfolio to Pfizer (with sale expected to close by the end of the year) and exploring options for its vaccines R&D program, including influenza.[3]

In March 2014, Baxter announced plans to separate into independent global healthcare companies—one focused on developing and marketing biopharmaceuticals and the other on medical products. The medical products company retained the name Baxter International Inc. and the biopharmaceuticals company is named Baxalta and spun off as a new public company as of July 1, 2015 CE.[4]

In October 2015, José E. Almeida was named Chairman and Chief Executive Officer.[5]

Corporate Responsibility

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 the establishment of the company's first formal environmental program, policy and energy conservation initiatives. In 1992, the company released its first environmental report. In 1993, Baxter created the Corporate Responsibility Office to oversee the company's ethics and compliance practices. In 2000, the company published its first sustainability report. In 2001, Baxter developed its Global Business Practice Standards for Suppliers. In 2007, Baxter established the Corporate Responsibility Council. The company was recognized in 2013 as one of the most civic-minded companies in the United States for the first time by Points of Light as part of the Civic 50. In 2015, the company conducted its first comprehensive, non-financial, corporate responsibility materiality assessment. Cite error: A <ref> tag is missing the closing </ref> (see the help page).[6] |- ! Name !! Focus !! 2013 sales (In billions) !! Percentage total sales |- | BioScience || Hemophilia therapy; antibody therapy; critical care therapy; pulmonology therapy; biosurgery products; vaccines || $6.4 || 43% |- | Medical Products || IV solutions, premixed drugs, infusion pumps and administration sets; parenteral nutrition products; anesthesia; drug formulation and pharma partnering; peritoneal dialysis products; hemodialysis products; continuous renal replacement therapy || $10.3 || 57% |- |}

The company had 2014 sales of $16.7 billion, across two businesses: BioScience (2013 sales - $6.6 billion) and Medical Products ($8.7 billion).[1] Sales in 2013 were 42% in the United States, 30% in Europe, 16% in Asia Pacific, 12% in Latin America and Canada. In 2011, Baxter had approximately 61,500 employees. The breakdown of regional employees in 2013 was 36% in the United States; 34% in Europe; 16% in Asia Pacific; 14% in Latin America and Canada. In 2013, Baxter International spent more than $1.2 billion on research and development.[7]

Corporate governance

In 1953 William Graham became the company's CEO. Vernon Loucks became president and CEO in 1980. Loucks was forced to resign by shareholders.[8] When shareholders forced Loucks to resign,[9]

"In January, as Baxter International Inc.'s Vernon Loucks relinquished his CEO duties after 18 years, directors handed him a special stock-option grant of 950,000 shares "for the specific purposes of motivating" him "to implement a smooth transition of his responsibilities." If Mr. Loucks sells all the 400,000 shares he can exercise at year end and Baxter's stock price remains at its current level, he will make more than $4 million."

— The Wall Street April 29th, 1999

Loucks was succeeded by Harry Kraemer, who was succeeded by Robert Parkinson, who took the CEO position in 2004.[10]

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 has been 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]

Philanthropy

In 2008, Baxter launched Science@Work: Expanding Minds with Real-World Science, which supports teacher training and student development in healthcare and biotechnology in Chicago Public Schools.[12]: 17 

In 2013, the company was included in The Civic 50, a list of the most community-minded companies in America from The National Conference on Citizenship and Points of Light, published by Bloomberg.[13]

In 2014, roughly 6,300 Baxter employees volunteered in their communities through The Baxter International Foundation’s Dollars for Doers program, addressing local concerns such as healthcare, the environment and education.[14]: 104  In 2014, Baxter and The Baxter International Foundation gave over $50 million.[15]

Baxter was included for the 13th year in Corporate Responsibility magazine’s 100 Best Corporate Citizens list in 2014 for its social responsibility performance.[16]

Controversies

1975 Hemofil - Hepatitis B outbreak

In August 1975, Baxter / Travenol withdrew a clotting factor product "Hemofil" after the product was associated with an outbreak of Hepatitis B.[17]

1983 Prison Plasma Collection

Baxter, unbeknownst to the FDA, continued to use prison plasma in factor concentrate production until October 1983, despite having entered into an agreement with the FDA (11 months earlier), that they would no longer use US prison plasma, which posed a high-risk of virus transmission.[18]

2001 Althane disaster

Main article: Baxter Althane disaster

The Baxter Althane disaster in autumn 2001 was a series of 56 sudden deaths of renal failure patients in Spain, Croatia, Italy, Germany, Taiwan, Colombia and the USA (mainly Nebraska and Texas). All had received hospital treatment with Althane hemodialysis equipment, a product range manufactured by Baxter International, USA.[19][20]

2008 Chinese heparin adulteration

Main article: 2008 Chinese heparin adulteration

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.[21] Upon inspection, one of the raw ingredients used by Baxter was 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 were never subjected to inspection by US FDA officials, as required by FDA regulations. In addition, Changzhou SPL's products were also never certified as safe for use in pharmaceutical products by Chinese FDA officials, due to Changzhou SPL's registration as a chemical company rather than a pharmaceutical manufacturer.[22][23][24] 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, samples of viral material supplied by Baxter International to a series of European laboratories were found to be contaminated with live Avian flu virus (Influenza A virus subtype H5N1).[25] Samples of the less harmful seasonal flu virus (subtype H3N2) were found to be mixed with the deadly H5N1 strain after a vaccine made from the material killed test animals in a lab in the Czech Republic. Though the serious consequences were avoided by the lab in the Czech Republic,[26] Baxter then claimed the failed controls over the distribution of the virus were 'stringent' and there was 'little chance' of the lethal virus harming humans.[27]

2009 drug cost inflation

On July 2, 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%.[28]

2010 Hepatitis C infections

In 2010, a jury in Las Vegas, Nevada ordered Baxter to pay $144 million to patients who had been infected with Hepatitis C after doctors wrongly reused dirty medical supplies to administer propofol to patients. The jury granted the award, despite the fact that the label for propofol clearly states that it is for single-patient use only and that aseptic procedures should be used at all times.[29]

2010 infusion pump recall

In 2010, Baxter was ordered by the FDA to recall all of their Colleague infusion pumps from the market due to 87 recalls and deaths associated with the pump.[30]

2008–2010 tax dodging

In December 2011, the non-partisan organization Public Campaign criticized Baxter for spending $10.45 million on lobbying and not paying any taxes during 2008–2010, instead getting $66 million in tax rebates, despite making a profit of $926 million.[31]

See also

References

  1. ^ a b c d e f "2013 Form 10-K" (PDF).
  2. ^ "Contact Us." Baxter International. Retrieved on February 2, 2011. "Corporate address: One Baxter Parkway Deerfield, IL 60015-4625."
  3. ^ http://www.baxter.com/press_room/press_releases/2014/07_30_14_vaccines.html
  4. ^ "Baxalta Added and QEP Resources Deleted". sandp500changes.whw1.com. July 1, 2015. Retrieved July 1, 2015.
  5. ^ Russell, John. "Baxter names new CEO". The Chicago Tribune. The Chicago Tribune.
  6. ^ 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 0-07-021733-5.
  7. ^ "Corporate overview".
  8. ^ Cite error: The named reference Mintzberg was invoked but never defined (see the help page).
  9. ^ Schellhardt, Timothy D. (April 29, 1999). "To a Pile of CEO Perks, Add the 'Special' Bonus". The Wall Street Journal. Retrieved October 18, 2015.
  10. ^ Cite error: The named reference history was invoked but never defined (see the help page).
  11. ^ "Baxter to release flu vaccine in July". United Press International. June 13, 2009. Archived from the original on June 16, 2009. Retrieved July 2, 2009. {{cite news}}: Unknown parameter |deadurl= ignored (|url-status= suggested) (help)
  12. ^ "Education and Critical Community Needs" (PDF), Baxter, Baxter sustainability report, 2015, retrieved October 18, 2015
  13. ^ The Civic 50 website, 2013 results: http://www.civic50.org/2013_results.php
  14. ^ "Employee Involvement" (PDF), Baxter, Baxter sustainability report, 2015, retrieved October 18, 2015
  15. ^ "Community Support" (PDF), Baxter, Baxter sustainability report, 2015, retrieved October 18, 2015
  16. ^ Baxter press release, “Baxter’s Fifteenth Sustainability Report Highlights Commitment to Innovative Programs and Sustainable Design”: http://www.baxter.com/press_room/press_releases/2014/06_25_14_sustainability.html
  17. ^ http://health.gov.ie/wp-content/uploads/2014/04/Tribunal-of-Inquiry-into-the-Infection-with-HIV-and-Hep-C-of-persons-with-Haemophilia-and-Related-Matters.pdf
  18. ^ Class Action Complaint (2004) Case No. C032572 PJH. Page 24.
  19. ^ "Baxter Dialyzer Recall". Major Recalls of Organ Replacement Devices. Retrieved October 12, 2013.
  20. ^ "Baxter Faces Suit On Dialysis Deaths". New York Times. November 14, 2001. Retrieved October 12, 2013.
  21. ^ "Heparin's Deadly Side Effects". Time magazine. November 13, 2008. Archived from the original on November 21, 2008. Retrieved November 16, 2008. {{cite news}}: Unknown parameter |deadurl= ignored (|url-status= suggested) (help)
  22. ^ "Contaminant Found in Blood Thinner", Washington Post (Online edition), March 5, 2008
  23. ^ "Baxter probe focuses on US-owned China plant – WSJ", Reuters, February 15, 2008
  24. ^ "China Washes Hands on Heparin Purity", Wall Street Journal (Online edition) February 27, 2008
  25. ^ "Baxter Sent Bird Flu Virus to European Labs by Error". Bloomberg L.P. February 24, 2009. Retrieved August 8, 2009.
  26. ^ "Baxter admits flu product contained live bird flu virus". CTV. The Canadian Press. February 27, 2009. Retrieved July 4, 2009.[dead link‍]
  27. ^ Jack, A (March 16, 2009). "WHO mulls stricter transport of bio products". Financial Times. Retrieved June 16, 2009.
  28. ^ Tracy, B (July 3, 2009). "Conway Announces Multi-Million Dollar Settlement With Drug Company". Kentucky Post. E. W. Scripps Company. Retrieved July 3, 2009.
  29. ^ Teva, Baxter Will Fight $500 Million in Damages Over Propofol, Business Week, May 8, 2010
  30. ^ "FDA Issues Statement on Baxter's Recall of Colleague Infusion Pumps". FDA. FDA. Retrieved May 3, 2010.
  31. ^ Portero, Ashley. "30 Major U.S. Corporations Paid More to Lobby Congress Than Income Taxes, 2008–2010". International Business Times. Archived from the original on December 26, 2011. Retrieved December 26, 2011. {{cite web}}: Unknown parameter |deadurl= ignored (|url-status= suggested) (help)
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