Malta regulators announced this week that healthcare giant,
Baxter International Inc.
) is slated to add 30 new jobs at its Malta facility over the
next 18 months and is also set to invest in the infrastructure
BAXTER INTL (BAX): Free Stock Analysis Report
ENZYMOTEC LTD (ENZY): Free Stock Analysis
SURMODICS (SRDX): Free Stock Analysis Report
MERIDIAN BIOSCI (VIVO): Free Stock Analysis
To read this article on Zacks.com click here.
Following the announcement, shares of BAX inched up 0.3% to close
at $73.39 yesterday. Shares of BAX have already been rising since
the announcement of its decision last week to split its
pharmaceuticals and medical products businesses into separate
BAX will add new members to its research & development
workforce at the Malta facility. The new positions will consist
of engineers who will operate in different technical disciplines
within the Baxter's Medical Products business, complementing
other existing R&D resources around the world.
In March 2013, BAX had reportedly dismissed 97 employees from the
Malta office, which represented about 16% of its workforce in
Malta at the time. The current additions would only partly make
up for the reported job cuts last year.
BAX is seen making efforts to meet its current and future
business needs by investing in its manufacturing infrastructure
and employee capabilities while also increasing its manufacturing
capacity over the coming years.
Last week, BAX revealed that it will split-up its
biopharmaceuticals and medical device segments into two
independent companies in an attempt to boost innovation and
profitability by separately managing the two businesses.
The split-up would enable BAX to lay greater management focus on
the two businesses, effectively commercialize product offerings,
optimally allocate resources to high-growth areas and bring
flexibility in decision-making with respect to growth and
BAX anticipates completing the split-up by mid-2015 in the form
of a tax-free distribution of publicly traded shares in the new
biopharmaceuticals company to its shareholders. The company
expects to incur one-time charges due to the split-up during the
reporting periods preceding the separation. However, BAX does not
expect it to impact its financial guidance for 2014.
Over the last seven days, BAX has witnessed rising estimate
revisions mainly on account of its planned business split-up. For
2014, one estimate moved upward causing the Zacks Consensus
Estimate to improve 0.6% to its current level of $5.16 per share.
Currently, BAX carries a Zacks Rank #3 (Hold). Some better-ranked
stocks in the medical products industry are
Meridian Bioscience, Inc.
). While Enzymotec sports a Zacks Rank #1 (Strong Buy), Meridian
Bioscience and Surmodics carry a Zacks Rank #2 (Buy).