Baxter International Inc.
) reached a lifetime high of $76.80 in mid-day trading on Jul 11.
The company's shares closed marginally lower at $76.59 on the same
day, translating to a decent one-year return of 8.5%.
Since the beginning of this year, shares of this global healthcare
company have been on the rise, posting an impressive year-to-date
return of 12.3%, which is much higher than the S&P 500 return
BAX has a market cap of $41.6 billion while average volume of
shares traded over the last three months stands at approximately
Catalysts for Growth
BAX witnessed a string of U.S. Food and Drug Administration (FDA)
approvals for its new products in the first half of 2014. The
company also executed several acquisitions which are anticipated to
be potential growth drivers over the long term.
Last week, BAX completed the acquisition of AesRx, LLC, a
privately-owned orphan drug producer in the U.S. Per the deal, BAX
will acquire the development and commercialization rights of
Aes-103 - AesRx's novel drug used in the treatment for sickle cell
disease (SCD). With the AesRx acquisition, BAX intends to address
the highly unmet clinical needs of patients suffering from
In April this year, BAX revealed its plans to takeover NC-based
gene therapy-mediated cures developer, Chatham Therapeutics, LLC.
Extending its collaboration with Chatham Therapeutics since May
2012, BAX plans to gain a broader access to the former's gene
therapy platform, supporting the development and commercialization
of hemophilia treatments.
In the same month, the FDA also approved BAX's new reconstitution
system for ADVATE (Antihemophilic Factor [Recombinant]), which was
developed to reduce the number of steps in the reconstitution
process for hemophilia A patients and caregivers. The clearance
reflects strongly on the company's ongoing efforts in developing
innovative therapies to meet the evolving needs of the hemophilia
In May 2014, BAX's next-generation SIGMA Spectrum Infusion Pump
received 510(k) clearance from the FDA. Featuring a Master Drug
Library and dose error reduction software, the advanced infusion
pump from BAX supports data integration into a hospital's
electronic medical record system and helps create continuous
quality improvement reports.
BAX released a promising guidance, both for the second quarter and
full-year 2014. For the second quarter of 2014, the company expects
revenues to grow between 12 and 13%, barring the impact of foreign
currency. Meanwhile, BAX projects adjusted earnings in the range of
$1.18 to $1.22 per share for the quarter. The current Zacks
Consensus Estimate of $1.21 lies within the guided range.
For full-year 2014, BAX continues to anticipate revenue growth in
the range of 9 to 10%, excluding the impact of foreign exchange.
Also, the company expects adjusted earnings between $5.05 and $5.25
per share for 2014, reflecting year-over-year growth of 7.4 to
11.7%. The current Zacks Consensus Estimate for the same is pegged
Currently, BAX carries a Zacks Rank #4 (Sell). Better-ranked stocks
in the medical products industry include
OraSure Technologies, Inc.
Wright Medical Group Inc.
). All these stocks sport a Zacks Rank #1 (Strong Buy).
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