) presented encouraging data from the Advate [Antihemophilic
Factor (Recombinant), Plasma/Albumin-Free Method] prophylaxis
study at the International Society on Thrombosis and Haemostasis
(ISTH) in Amsterdam, the Netherlands. Advate is meant for the
avoidance or curtailment of bleeding in victims of hemophilia A.
A post-hoc analysis has identified an interrelation between peak
levels of factor VIII (FVIII) in a patient's body in the first
few hours after infusion and the efficiency of prophylaxis
treatment in patients with hemophilia A. The duration of the
factor remaining active in the body will aid doctors determine
the optimal dosage of the drug required to reduce bleeding.
Additional findings from a survey of 76 adults living with
hemophilia and 86 parents of children with hemophilia in the U.S.
revealed that patients prefer lower bleeding rate in comparison
to lesser infusion per week.
Last week, the company had presented a meta-analysis of
post-authorization safety studies (PASS) of the Advate at the
ISTH, which demonstrated that the product lowers inhibitor rate
and is safe and effective for use in routine clinical practices.
The results were consistent with that of the trials conducted in
controlled, interventional settings. Another integrated 10-year
data from 12 interventional clinical studies showed that the
offering is safe for children and adults with moderately severe
or severe hemophilia A.
Positive findings from the Advate clinical trials should boost
sales of Advate, which is a part of Baxter's Recombitants product
category under the BioScience segment. Revenues from the
BioScience business grew 5% in the first quarter of 2013, partly
led by higher demand for Advate.
Baxter is striving to grow its hemophilia business through the
international expansion of its product line. According to the
World Federation of Hemophilia, there are about 400,000
hemophilia patients in the world. Advate is approved in 58
countries across the globe, including the U.S., Canada, and
several countries in the European Union.
Recently, the product received regulatory approval in China for
the control and prophylaxis of bleeding episodes in individuals
with hemophilia A. We believe that Advate has considerable scope
to capture significant market share in the world's second largest
Although we believe that the recent developments including a
strong product line and several products in late stage clinical
development are encouraging, we are concerned about the relative
stagnation in sales, a difficult outlook for hospital spending
and tightening of reimbursement.
The stock currently carries a Zacks Rank #3 (Hold). While we
choose to remain on the sidelines for Baxter, medical device
stocks worth a look are
Wright Medical Group
). While WMGI and RMD carry a Zacks Rank #1 (Strong Buy), HGR
carries a Zacks Rank #2 (Buy).
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