Baxter International
{{Short description|American multinational healthcare company}}
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{{Infobox company
| name = Baxter International Inc.
| logo = Baxter.svg
| type = Public
| traded_as = {{Unbulleted list|{{NYSE|BAX}}|S&P 500 component}}
| industry = Medical equipment
| founder = Donald Baxter
| key_people = José E. Almeida (chairman & CEO)
Jay Saccaro (CFO)
| products = Medical supplies to treat haemophilia and kidney disease and provide intravenous therapy
| revenue = {{increase}} {{US$|10.6 billion|link=yes}} (2024)
| operating_income = {{decrease}} {{US$|14 million}} (2024)
| net_income = {{decrease}} {{US$|-649 million}} (2024)
| assets = {{decrease}} {{US$|25.8 billion}} (2024)
| equity = {{decrease}} {{US$|6.96 billion}} (2024)
| num_employees = {{circa|38,000}} (2024)
| location = Deerfield, Illinois, U.S.
| foundation = {{Start date and age|1931}}
| website = {{URL|baxter.com}}
| footnotes = {{cite web |url=https://www.sec.gov/ix?doc=/Archives/edgar/data/10456/000162828025007201/bax-20241231.htm |title=Baxter International Inc. 2024 Annual Report (Form 10-K) |date=February 24, 2025 |publisher=U.S. Securities and Exchange Commission |access-date=February 25, 2025 }}
}}
Baxter International Inc. is an American multinational healthcare company with headquarters in Deerfield, Illinois."[http://www.baxter.com/about_baxter/contact_us/index.html Contact Us] {{Webarchive|url=https://web.archive.org/web/20101212020228/http://baxter.com/about_baxter/contact_us/index.html |date=December 12, 2010 }}." Baxter International. Retrieved on February 2, 2011. "Corporate address: One Baxter Parkway Deerfield, IL 60015-4625."
The company primarily focuses on products to treat chronic and acute medical conditions. The company had 2023 global net sales of $14.8 billion (+2% vs 2022), across three business: "Medical Product and Therapies", "Healthcare Systems and Technologies" and Pharmaceuticals.
Baxter's Medical Product and Therapies business comprise two divisions: the first named "Advanced Surgery" that produce technologies to enhance surgeons' technique, increase efficiencies and improve outcomes. The second named "Infusion Therapies and Technologies" produces intravenous products and other products used in the delivery of fluids and drugs to patients.
Baxter's Healthcare System and Technologies business has four divisions "Front Line Care", "Digital Platform and Innovations", "Care and Connectivity Solutions" and "Global Services".
Baxter's Pharmaceuticals business produce inhalational anaesthetics and other differentiated hospital pharmaceuticals in areas of pain, critical care, anti-infection and oncology.
History
Baxter International was founded in 1931 by Donald Baxter, a Los Angeles-based medical doctor, as a manufacturer and distributor of intravenous therapy solutions. Seeing a need for products closer to the Midwest, the company opened a manufacturing plant in Glenview, Illinois, in 1933. Baxter's interest was bought out in 1935 by Ralph Falk, who established a research and development function.{{cite web |last=Library |first=HBS Baker |title=Baxter Laboratories, Inc. {{!}} Baker Library {{!}} Bloomberg Center {{!}} Harvard Business School |url=https://www.library.hbs.edu/hc/lehman/data-resources/companies-deals/baxter-laboratories-inc |access-date=2022-09-14 |website=www.library.hbs.edu |language=en}} 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.{{cite web |title=Baxter opens r&d facility in Alliance Park, Belgium |url=https://www.manufacturingchemist.com/news/article_page/Baxter_opens_r_and_d_facility_in_Alliance_Park_Belgium/55316 |access-date=2022-09-14 |website=www.manufacturingchemist.com |language=en |archive-date=September 14, 2022 |archive-url=https://web.archive.org/web/20220914185605/https://www.manufacturingchemist.com/news/article_page/Baxter_opens_r_and_d_facility_in_Alliance_Park_Belgium/55316 |url-status=live }} In 1956 Baxter International introduced the first functioning artificial kidney, and in 1971 became a member of the Fortune 500.
In 1971, Baxter built a major manufacturing plant in Ashdod, Israel. As a result, the company was placed on the Arab League boycott list in the early 1980s.{{cite book|last=Feiler|first=Gil|title=From Boycott to Economic Cooperation: The Political Economy of the Arab Boycott of Israel|publisher=Frank Cass Publishers|year=2005|page=70}}
Throughout the 1980s and 1990s, the company expanded to deliver a wider variety of products and services (including vaccines and a greater variety of blood products) through acquisitions of various companies. Sales and production facilities also expanded throughout the world.{{cite web | url=http://www.baxter.com/about_baxter/company_profile/sub/history.html | title=History | publisher=Baxter International | access-date=July 8, 2009 | archive-url=https://web.archive.org/web/20090602055413/http://www.baxter.com/about_baxter/company_profile/sub/history.html | archive-date=June 2, 2009 }}
In 1982, Baxter acquired Medcom, Inc., a New York-based firm founded by Richard Fuisz and his brother, that had large markets in the United States and Saudi Arabia.{{cite news|last=Morris|first=Steven|title=Baxter Told To Pay Firm $15 Million|newspaper=Chicago Tribune|date=March 17, 1990|url=https://www.chicagotribune.com/1990/03/17/baxter-told-to-pay-firm-15-million/|access-date=November 30, 2016|archive-date=March 4, 2016|archive-url=https://web.archive.org/web/20160304073042/http://articles.chicagotribune.com/1990-03-17/business/9001220565_1_dr-richard-fuisz-baxter-spokesman-baxter-international|url-status=live}}{{cite web |url=http://edgar.secdatabase.com/2993/95013397001096/filing-main.htm |title=FUISZ TECHNOLOGIES LTD, Form 10-K, Annual Report, Filing Date Mar 31, 1997 |publisher=secdatabase.com |access-date=May 15, 2018 |archive-date=May 16, 2018 |archive-url=https://web.archive.org/web/20180516174702/http://edgar.secdatabase.com/2993/95013397001096/filing-main.htm |url-status=live }}{{cite news|last=Kupper|first=Thom|title='Whistle-blower' Left L.v. For Career|newspaper=The Morning Call|date=January 29, 1992|url=https://www.mcall.com/1992/01/29/whistle-blower-left-lv-for-career/|access-date=November 30, 2016|archive-date=January 12, 2016|archive-url=https://web.archive.org/web/20160112114703/http://articles.mcall.com/1992-01-29/news/2844691_1_richard-fuisz-medcom-products-baxter|url-status=live}} Baxter chief executive Vernon Loucks fired Fuisz who then brought anti-boycott charges against Baxter to the U.S. Commerce Department Office of Anti-Boycott Compliance (OAC). Fuisz alleged that Baxter had sold their profitable Ashdod facility to Teva Pharmaceutical Industries in 1988 while simultaneously negotiating the construction of a similar plant in Syria in partnership with the Syrian military in order to be removed from the Arab League blacklist in 1989.{{cite news|last=Curtiss|first=Richard|title=People Watch|newspaper=Washington Report on Middle East Affairs|page=45|date=July–August 1994|url=http://www.wrmea.org/wrmea-archives/156-washington-report-archives-1994-1999/july-august-1994/7546-pollard-mentor-rafael-eitan-turns-up-in-castros-cuba.html|access-date=November 30, 2016|archive-date=February 28, 2014|archive-url=https://web.archive.org/web/20140228170717/http://www.wrmea.org/wrmea-archives/156-washington-report-archives-1994-1999/july-august-1994/7546-pollard-mentor-rafael-eitan-turns-up-in-castros-cuba.html|url-status=live}}{{cite news|last=Morris|first=Steven|title=$6 Million From Baxter|newspaper=Chicago Tribune|date=March 26, 1993|url=https://www.chicagotribune.com/1993/03/26/6-million-from-baxter/|access-date=November 30, 2016|archive-date=January 12, 2016|archive-url=https://web.archive.org/web/20160112114703/http://articles.chicagotribune.com/1993-03-26/business/9303260280_1_dr-richard-fuisz-anti-boycott-baxter-international|url-status=live}} In 1993 Baxter pleaded guilty to a felony in relation to an anti-boycott law in the United States.{{cite web | url=https://www.bloomberg.com/bw/stories/1991-10-06/the-case-against-baxter-international | title=The case against Baxter International | publisher=Bloomberg | date=October 6, 1991 | access-date=October 17, 2015 | archive-date=March 4, 2016 | archive-url=https://web.archive.org/web/20160304193605/http://www.bloomberg.com/bw/stories/1991-10-06/the-case-against-baxter-international | url-status=live }}
On July 15, 1985, American Hospital Supply Corporation CEO Karl D. Bays and Baxter's then-CEO Vernon R. Loucks Jr. signed an agreement that merged two of the United States' "largest producers of medical supplies".{{cite news | url=https://www.nytimes.com/1985/07/16/business/baxter-s-merger-bid-accepted.html | title=Baxter's Merger Bid Accepted Published: July 16, 1985 | work=New York Times | date=July 16, 1985 | access-date=October 17, 2015 | author=Crudele, John | archive-date=October 13, 2022 | archive-url=https://web.archive.org/web/20221013231435/https://www.nytimes.com/1985/07/16/business/baxter-s-merger-bid-accepted.html | url-status=live }} This was a "one-Baxter approach" in which the company provided "70% to 80% of what a hospital needed."
In 1991, Baxter's home infusion subsidiary, Caremark International, "was accused by the government of paying doctors to steer patients to its intravenous drug service"{{cite news | url=https://www.chicagotribune.com/1995/06/19/caremark-wounds-not-deep/ | title=Caremark Wounds Not Deep Penalty Could Have Been More Damaging | newspaper=Chicago Tribune | date=June 19, 1995 | access-date=October 17, 2015 | author=Yates, Ronald E. | archive-date=January 12, 2016 | archive-url=https://web.archive.org/web/20160112114703/http://articles.chicagotribune.com/1995-06-19/business/9506190063_1_baxter-international-million-settlement-bear-stearns | url-status=live }} In 1992 Caremark spun off from Baxter International. Caremark was fined $160 million for the "four-year-long federal mail-fraud and kickback" scheme in which the "home-infusion business unit made weekly payments to scores of doctors that averaged about $75 per patient for referring those patients to its services. Some doctors earned as much as $80,000 a year from the kickbacks, according to government documents."
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.{{cite book | isbn = 0-19-513160-6 | title = Blood feuds: AIDS, blood, and the politics of medical disaster | publisher=Oxford University Press | year = 1999 | last = Feldman | first = EA |author2=Bayer R | pages = [https://books.google.com/books?id=mcRp6cvcTm4C&pg=PA49 49–50]; [https://books.google.com/books?id=mcRp6cvcTm4C&pg=PA320 320]}} Under pressure from shareholders due to poor performance and an unsuccessful merger, Loucks was forced to resign.{{cite book |author=Mintzberg, Henry |title=Managers Not MBAs: A Hard Look at the Soft Practice of Managing and Management Development |publisher=Berrett-Koehler Publishers |location=San Francisco, Calif |year=2004 |url=https://archive.org/details/managersnotmbash00mint |url-access=registration |page=[https://archive.org/details/managersnotmbash00mint/page/115 115] |isbn=1-57675-275-5 }}{{rp|115}}
Baxter acquired medical device firm Baxa on November 10, 2011.{{cite news | url=http://articles.boston.com/2011-11-10/business/30382914_1_baxter-international-baxa-syringes | archive-url=https://archive.today/20120707122636/http://articles.boston.com/2011-11-10/business/30382914_1_baxter-international-baxa-syringes | url-status=dead | archive-date=2012-07-07 | work=The Boston Globe | title=Baxter Int'l finishes $380M Baxa Corp purchase }} In 2011, Hikma Pharmaceuticals PLC completed the acquisition of Baxter Healthcare Corporation's US generic injectables business (Multi-Source Injectables or MSI).{{cite news | url=https://www.reuters.com/finance/stocks/HIK.L/key-developments/article/2304890 | work=Reuters. Retrieved May 3, 2011 | title=Hikma Pharmaceuticals Plc Completes Acquisition of Baxter Healthcare Corporation's Multi-Source Injectables Business | access-date=June 30, 2017 | archive-date=October 18, 2012 | archive-url=https://web.archive.org/web/20121018051926/http://www.reuters.com/finance/stocks/HIK.L/key-developments/article/2304890 | url-status=dead }}{{cite web | url=http://www.hikma.com/en/about-hikma/our-history.aspx | work=Hikma Pharmaceuticals PLC | title=History | access-date=May 11, 2012 | archive-url=https://web.archive.org/web/20130626185157/http://www.hikma.com/en/about-hikma/our-history.aspx | archive-date=June 26, 2013 | url-status=dead | df=mdy-all }}
In July 2013, EU antitrust regulators approved Baxter's bid for Sweden's Gambro.{{cite news | url=https://www.reuters.com/article/us-baxterinternational-gambro-eu-idUSBRE9690ML20130710 | title=EU to clear Baxter's $4 billion buy of Sweden's Gambro: sources | author=Foo Yun Chee | work=Reuters | date=10 July 2013 | access-date=June 30, 2017 | archive-date=January 12, 2015 | archive-url=https://web.archive.org/web/20150112230558/http://www.reuters.com/article/2013/07/10/us-baxterinternational-gambro-eu-idUSBRE9690ML20130710 | url-status=live }}
In March 2014, Baxter announced plans to create two independent global healthcare companies—one focused on developing and marketing bio-pharmaceuticals and the other on medical products. The medical products company retained the name Baxter International Inc. and the bio-pharmaceuticals company is named Baxalta and spun-off as a new public company that showed on trading boards as of July 1, 2015.{{cite web|url=http://sandp500changes.whw1.com/#D20150701-BXLT-QEP|title=Baxalta Added and QEP Resources Deleted|publisher=SandP500changes.whw1.com|date=July 1, 2015|access-date=July 1, 2015|archive-date=October 23, 2018|archive-url=https://web.archive.org/web/20181023053146/http://sandp500changes.whw1.com/#D20150701-BXLT-QEP|url-status=dead}}
In July 2014, Baxter announced that it was exiting the vaccines business—divesting its commercial vaccine portfolio to Pfizer (with the sale expected to close by the end of the year) and exploring options for its vaccines R&D program, including influenza.{{cite web |url=http://www.baxter.com/press_room/press_releases/2014/07_30_14_vaccines.html |title=Baxter U.S. - Baxter Announces Divestiture of Commercial Vaccines Business to Pfizer |access-date=November 18, 2014 |archive-url=https://web.archive.org/web/20141128175339/http://www.baxter.com/press_room/press_releases/2014/07_30_14_vaccines.html |archive-date=November 28, 2014 |url-status=dead }} In October 2015, José E. Almeida was named chairman and chief executive officer.{{cite web|last1=Russell|first1=John|title=Baxter names new CEO|url=http://www.chicagotribune.com/business/ct-baxter-names-new-ceo-1029-biz-20151028-story.html|website=The Chicago Tribune|date=October 28, 2015|access-date=October 29, 2015|archive-date=October 13, 2022|archive-url=https://web.archive.org/web/20221013135259/https://www.chicagotribune.com/business/ct-baxter-names-new-ceo-1029-biz-20151028-story.html|url-status=live}} In January 2016 Shire PLC agreed to acquire Baxalta for $32 billion.{{cite news|last1=Ward|first1=Andrew|title=Shire agrees $32bn takeover of Baxalta|url=https://www.ft.com/content/bb4b97d4-b2cf-11e5-b147-e5e5bba42e51 |archive-url=https://ghostarchive.org/archive/20221211/https://www.ft.com/content/bb4b97d4-b2cf-11e5-b147-e5e5bba42e51 |archive-date=December 11, 2022 |url-access=subscription |url-status=live|publisher=FT}}
In December 2016, Baxter announced it would acquire Claris Lifesciences injectables subsidiary, Claris Injectables, for $625 million.{{cite web|url=http://www.genengnews.com/gen-news-highlights/baxter-buys-claris-generic-injectables-subsidiary-for-625m/81253563|title=Baxter Buys Claris' Generic Injectables Subsidiary for $625M - GEN Genetic Engineering & Biotechnology News - Biotech from Bench to Business - GEN|website=GEN|date=December 15, 2016|access-date=July 16, 2017|archive-date=December 21, 2016|archive-url=https://web.archive.org/web/20161221011946/http://www.genengnews.com/gen-news-highlights/baxter-buys-claris-generic-injectables-subsidiary-for-625m/81253563|url-status=live}}
In December 2019, the company announced it would acquire Seprafilm from Sanofi for $350 million.{{cite web|url=https://www.biospace.com/article/releases/baxter-to-expand-advanced-surgery-portfolio-with-acquisition-of-seprafilm-adhesion-barrier/?s=79|title=Baxter to Expand Advanced Surgery Portfolio with Acquisition of Seprafilm Adhesion Barrier|date=December 2, 2019 |access-date=December 8, 2019|archive-date=October 13, 2022|archive-url=https://web.archive.org/web/20221013231432/https://www.biospace.com/article/releases/baxter-to-expand-advanced-surgery-portfolio-with-acquisition-of-seprafilm-adhesion-barrier/?s=79|url-status=live}}{{cite press release|url=https://www.businesswire.com/news/home/20191202005209/en/|title=Baxter to Expand Advanced Surgery Portfolio with Acquisition of Seprafilm Adhesion Barrier|date=December 2, 2019|access-date=December 8, 2019|archive-date=October 20, 2022|archive-url=https://web.archive.org/web/20221020085556/https://www.businesswire.com/news/home/20191202005209/en|url-status=live}}
In September 2021, Baxter announced it would acquire Hill-rom for $12.4 billion.{{cite news|last=Linnane|first=Ciara|title=Baxter to acquire Hillrom in all-cash deal with enterprise value of about $12.4 billion|url=https://www.marketwatch.com/story/baxter-to-acquire-hillrom-in-all-cash-deal-with-enterprise-value-of-about-124-billion-2021-09-02|access-date=2021-09-02|website=MarketWatch|language=EN-US|archive-date=October 13, 2022|archive-url=https://web.archive.org/web/20221013083012/https://www.marketwatch.com/story/baxter-to-acquire-hillrom-in-all-cash-deal-with-enterprise-value-of-about-124-billion-2021-09-02|url-status=live}} The acquisition was completed in December 2021 for $12.5 billion.{{cite news|title=Baxter officially acquires Hillrom|url=https://news.yahoo.com/baxter-officially-acquires-hillrom-045900620.html|publisher=Greensburg Daily News|via=Yahoo! News|date=December 13, 2021|access-date=December 20, 2021|archive-date=December 20, 2021|archive-url=https://web.archive.org/web/20211220005658/https://news.yahoo.com/baxter-officially-acquires-hillrom-045900620.html|url-status=live}}
In May 2023, Baxter announced it was selling its biopharma solutions business, which offers drugmakers support in the form of products like injectable delivery systems and services that include regulatory resources, help with drug formulation and development, and packaging capabilities, to private equity firms Warburg Pincus and Advent International for $4.25 billion in cash.{{Cite web |title=Private Equity Steps up for Baxter Biopharma {{!}} CHEManager |url=https://www.chemanager-online.com/en/news/private-equity-steps-baxter-biopharma |access-date=2023-05-23 |website=www.chemanager-online.com |archive-date=September 19, 2023 |archive-url=https://web.archive.org/web/20230919155725/https://www.chemanager-online.com/en/news/private-equity-steps-baxter-biopharma |url-status=live }}{{Cite news |last1=Carnevali |first1=David |last2=Sen |first2=Anirban |date=2023-05-07 |title=Exclusive: Warburg and Advent in the lead to acquire Baxter's biopharma unit |language=en |work=Reuters |url=https://www.reuters.com/markets/deals/warburg-advent-lead-acquire-baxters-biopharma-unit-sources-2023-05-07/ |access-date=2023-05-23 |archive-date=May 19, 2023 |archive-url=https://web.archive.org/web/20230519214733/https://www.reuters.com/markets/deals/warburg-advent-lead-acquire-baxters-biopharma-unit-sources-2023-05-07/ |url-status=live }}
In August 2024, Baxter agreed to divest its kidney care business unit, Vantive, to private equity firm Carlyle Group for $3.8 billion.{{Cite news |last=Wang |first=Echo |date=August 13, 2024 |title=Carlyle to buy Baxter's kidney-care spinoff Vantive for $3.8 billion |url=https://www.reuters.com/business/healthcare-pharmaceuticals/carlyle-buy-baxters-kidney-care-spinoff-vantive-38-billion-2024-08-13/ |publisher=Reuters}}
In September 2024, Hurricane Helene caused significant flooding in North Carolina, affecting a Baxter International facility in Marion. This facility produces approximately 60% of the intravenous (IV) fluids used in the United States. The disruption led to nationwide IV fluid shortages, prompting hospitals to ration supplies and implement strategies to conserve fluids. This also prompted questions from medical professionals about why such a large portion of the country's IV manufacturing capacity is tied to a single facility. As of November 7, 2024, the facility resumed producing some IV fluids. However, with the onset of flu season, hospitals continued to prioritize conservation efforts.{{cite web | last=Fortiér | first=Jackie | title=Nationwide IV fluid shortage changing how hospitals manage patient hydration | website=NPR | date=2024-11-19 | url=https://www.npr.org/sections/shots-health-news/2024/11/19/nx-s1-5193027/nationwide-iv-fluid-shortage-intravenous-drugs-hospitals-patient-hydration-helene-hurricane-baxter | access-date=2024-11-20}}
Environmental activities
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.{{cite book |editor=Klinkers L |editor2=Bennett M |editor3=James P | author=Bennett M; James P |title=Sustainable Measures: Evaluation and Reporting of Environmental and Social Performance |publisher=Greenleaf Pubns |year=1999 |pages= [https://books.google.com/books?id=I0iChJeHaC4C&pg=PA253 253–282]|isbn=1-874719-16-0 | chapter = The Evolution of Integrated Environmental Performance Evaluation and Reporting}} 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.{{cite book | pages = [https://books.google.com/books?id=_Cy9xMIoCdUC&pg=PA254 254–5] | isbn = 978-0-300-11077-7 | publisher=Yale University Press | last = Adelson | first = G |author2=Engell J |author3=Ranalli B |author4=Van Anglen KP | title = Environment: An Interdisciplinary Anthology | year = 2008 }} 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.{{cite web | title = Baxter Cuts GHG Emissions by 21% | url = http://www.environmentalleader.com/2009/06/19/baxter-cuts-ghg-emissions-by-21/ | date = June 19, 2009 | access-date = July 3, 2009 | publisher = Environmentalleader.com | archive-url = https://web.archive.org/web/20090621075303/http://www.environmentalleader.com/2009/06/19/baxter-cuts-ghg-emissions-by-21/ | archive-date = June 21, 2009 | url-status = dead }}
Structure
The company had 2014 sales of $16.7 billion, across two businesses: BioScience (2013 sales - $6.6 billion) and Medical Products ($8.7 billion).{{cite web |title=2013 Form 10-K |url=http://www.baxter.com/downloads/investors/reports_and_financials/annual_report/2013/2013_baxter_form10-K.pdf#page=51 |url-status=dead |archive-url=https://web.archive.org/web/20140703204142/http://www.baxter.com/downloads/investors/reports_and_financials/annual_report/2013/2013_baxter_form10-K.pdf#page=51 |archive-date=July 3, 2014 |access-date=July 14, 2014}} 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.{{cite web|title=Corporate overview|url=http://www.baxter.com/about_baxter/company_profile/corporate_overview.html|access-date=November 5, 2010|archive-date=November 20, 2010|archive-url=https://web.archive.org/web/20101120024936/http://baxter.com/about_baxter/company_profile/corporate_overview.html|url-status=live}} As of December 31, 2016, the company had approximately 48,000 employees.{{cite web|url=http://phx.corporate-ir.net/External.File?item=UGFyZW50SUQ9MzcwODQxfENoaWxkSUQ9LTF8VHlwZT0z&t=1&cb=636253845617338842|title=Baxter Form 10-K for year ended 2016}}{{Dead link|date=February 2022 |bot=InternetArchiveBot |fix-attempted=yes }}
=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.{{cite news | url=https://www.wsj.com/articles/SB925337647950346340 | title=To a Pile of CEO Perks, Add the 'Special' Bonus | newspaper=The Wall Street Journal | date=April 29, 1999 | access-date=October 18, 2015 | author=Schellhardt, Timothy D. | archive-date=July 26, 2024 | archive-url=https://web.archive.org/web/20240726165532/https://www.wsj.com/articles/SB925337647950346340 | url-status=live }}
{{quote|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.{{nbsp}}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{{nbsp}}million.|The Wall Street Journal, April{{nbsp}}29, 1999}}
During the tenure of Vernon Loucks, who was Baxter's CEO from 1980 to 1998 and chairman from 1987 to 1999, company sales "more than quadrupled to $5.7 billion while its workforce rose from 30,000 to 42,000." During that time, Loucks hired and groomed staff who went on to become CEOs elsewhere. Baxter alumni groomed by Loucks included Terry Mulligan of MedAssets, Lance Piccolo at Caremark, Mike Mussallem of Edwards Lifesciences Corp and CEOs of Boston Scientific Corp. and Cardinal Health.{{cite web | url=http://www.modernhealthcare.com/article/20060327/NEWS/60823001 | title=Profile of Vernon Loucks Spinning off success: Loucks helped mentor a cadre of future leaders at Baxter | work=Modern Healthcare | date=March 27, 2006 | access-date=October 17, 2015 | author=Finkel, Ed}}
Loucks was succeeded by Harry Kraemer, who was succeeded by Robert Parkinson, who took the CEO position in 2004.
H1N1 vaccine
In July 2009, Baxter International announced completion of the first commercial vaccine for the H1N1 ("swine flu") influenza.{{Cite news |date=2009-08-05 |title=Baxter completes first swine flu vaccine batches |language=en |work=Reuters |url=https://www.reuters.com/article/us-baxter-idUSTRE5746VY20090805 |access-date=2022-09-14 |archive-date=January 17, 2023 |archive-url=https://web.archive.org/web/20230117042836/https://www.reuters.com/article/us-baxter-idUSTRE5746VY20090805 |url-status=live }} 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.{{cite news | url = http://www.upi.com/Health_News/2009/06/13/Baxter-to-release-flu-vaccine-in-July/UPI-41571244908860/ | title = Baxter to release flu vaccine in July | publisher=United Press International | date = June 13, 2009 | access-date = July 2, 2009 | archive-url= https://web.archive.org/web/20090616050354/http://www.upi.com/Health_News/2009/06/13/Baxter-to-release-flu-vaccine-in-July/UPI-41571244908860/| archive-date= June 16, 2009 | url-status= live}}
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.{{citation |series=Baxter sustainability report |title=Education and Critical Community Needs |url=http://www.baxter.com/assets/downloads/baxter-sustainability-report-2014.pdf |date=2015 |work=Baxter |access-date=October 18, 2015 |archive-date=September 11, 2015 |archive-url=https://web.archive.org/web/20150911221112/http://www.baxter.com/assets/downloads/baxter-sustainability-report-2014.pdf |url-status=dead }}{{rp|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.{{cite web|url=http://www.civic50.org/2013_results.php|title=The Civic 50 website, 2013 results|website=Civic50.org|access-date=July 16, 2017|archive-url=https://web.archive.org/web/20140706034058/http://www.civic50.org/2013_results.php|archive-date=July 6, 2014|url-status=dead|df=mdy-all}}
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.{{citation |series=Baxter sustainability report |title=Employee Involvement |url=http://www.baxter.com/assets/downloads/baxter-sustainability-report-2014.pdf |date=2015 |work=Baxter |access-date=October 18, 2015 |archive-date=September 11, 2015 |archive-url=https://web.archive.org/web/20150911221112/http://www.baxter.com/assets/downloads/baxter-sustainability-report-2014.pdf |url-status=dead }}{{rp|104}} In 2014, Baxter and The Baxter International Foundation gave over $50 million.{{citation |series=Baxter sustainability report |title=Community Support |url=http://www.baxter.com/assets/downloads/baxter-sustainability-report-2014.pdf |date=2015 |work=Baxter |access-date=October 18, 2015 |archive-date=September 11, 2015 |archive-url=https://web.archive.org/web/20150911221112/http://www.baxter.com/assets/downloads/baxter-sustainability-report-2014.pdf |url-status=dead }}
Baxter was included for the 13th year in Corporate Responsibility magazine's 100 Best Corporate Citizens list in 2014 for its social responsibility performance.{{cite web|url=http://www.baxter.com/press_room/press_releases/2014/06_25_14_sustainability.html|title=Press Room: Press Releases – Baxter|date=June 2014|website=www.Baxter.com|access-date=July 16, 2017|archive-url=https://web.archive.org/web/20150603072124/http://www.baxter.com/press_room/press_releases/2014/06_25_14_sustainability.html|archive-date=June 3, 2015|url-status=dead}}
Product defects and contamination
In August 1975, Baxter / Travenol withdrew a clotting factor product Hemofil after the product was associated with an outbreak of hepatitis B.{{cite web |url=https://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 |title=Report of the Tribunal of Inquiry into the Infection with HIV and Hepatitis C of Persons with Haemophilia and Related Matters |date=2014 |website=health.gov.ie |access-date=2019-06-02 |archive-date=June 2, 2019 |archive-url=https://web.archive.org/web/20190602205025/https://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 |url-status=live }}
Baxter, unknown 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.Class Action Complaint (2004) Case No. C032572 PJH. Page 24.
It was announced in quarter 1 of 1996 that Baxter had agreed to settle a lawsuit involving 200 Japanese haemophilia patients who had become infected with HIV as a result of using contaminated haemophilia products which were unheated. The Japanese courts ordered for each victim to receive $411,460 by March 29 that year.{{cite web|last1=Letter|first1=The Pharma|title=Baxter Agrees To Settle Japan HIV Lawsuit|url=http://www.thepharmaletter.com/article/baxter-agrees-to-settle-japan-hiv-lawsuit|website=www.ThePharmaLetter.com|access-date=January 15, 2017|archive-date=July 28, 2020|archive-url=https://web.archive.org/web/20200728231717/https://www.thepharmaletter.com/article/baxter-agrees-to-settle-japan-hiv-lawsuit|url-status=live}}
In 2010, a jury in Las Vegas, Nevada, ordered Baxter and Teva Pharmaceuticals 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, although the label for propofol clearly states that it is for single-patient use only and that aseptic procedures should be used at all times.[https://web.archive.org/web/20100513152559/http://www.businessweek.com/news/2010-05-08/teva-baxter-will-fight-500-million-in-damages-over-propofol.html "Teva, Baxter Will Fight $500 Million in Damages Over Propofol", Business Week, May 8, 2010] Per a 2009 indemnity agreement between Teva (the manufacturer) and Baxter (acting as a distributor on behalf of Teva), the litigation and related settlements were defended and paid by Teva.{{cite web|url=http://investor.baxter.com/phoenix.zhtml?c=86121&p=irol-reportsannual;|title=2011 annual report, page 87|website=Baxter.com|access-date=July 16, 2017}}
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.{{cite news|title=FDA Issues Statement on Baxter's Recall of Colleague Infusion Pumps|url=https://www.fda.gov/NewsEvents/Newsroom/PressAnnouncements/ucm210664.htm|archive-url=https://web.archive.org/web/20100505181433/http://www.fda.gov/NewsEvents/Newsroom/PressAnnouncements/ucm210664.htm|url-status=dead|archive-date=May 5, 2010|access-date=May 3, 2010|agency=FDA|publisher=FDA}}
=2001 Althane disaster=
{{Main|Baxter Althane disaster}}
The Baxter Althane disaster in autumn 2001 was a series of 56 sudden deaths of kidney 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.{{cite web|title=Baxter Dialyzer Recall|url=http://biomed.brown.edu/Courses/BI108/BI108_2007_Groups/group05/pages/baxter.html|work=Major Recalls of Organ Replacement Devices|access-date=October 12, 2013|archive-url=https://web.archive.org/web/20131012151427/http://biomed.brown.edu/Courses/BI108/BI108_2007_Groups/group05/pages/baxter.html|archive-date=October 12, 2013|url-status=dead|df=mdy-all}}{{cite news|title=Baxter Faces Suit On Dialysis Deaths|url=https://www.nytimes.com/2001/11/14/business/baxter-faces-suit-on-dialysis-deaths.html|access-date=October 12, 2013|newspaper=New York Times|date=November 14, 2001|archive-date=October 12, 2013|archive-url=https://web.archive.org/web/20131012162610/http://www.nytimes.com/2001/11/14/business/baxter-faces-suit-on-dialysis-deaths.html|url-status=live}}
=2008 Chinese heparin adulteration=
{{Main|2008 Chinese heparin adulteration}}
In 2008, the quality of blood thinning products produced by Baxter was brought into question when they were linked to 81 deaths and 785 severe allergic reactions in the United States according to the FDA.{{cite book |last1=Hubbard |first1=Douglas |title=The Failure of Risk Management: Why It's Broken and How to Fix It |url=https://archive.org/details/failureriskmanag00hubb |url-access=limited |date=15 May 2009 |publisher=John Wiley & Sons |isbn=978-0470387955 |page=[https://archive.org/details/failureriskmanag00hubb/page/n32 15]}} 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.
The investigation into the contamination has focused on raw heparin produced by one of Baxter's subcontractors Changzhou Scientific Protein Laboratories, a China-based branch of Scientific Protein Laboratories, based in Waunakee, Wisconsin. Changzhou SPL's facilities were never subjected to inspection by US FDA officials. 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."Contaminant Found in Blood Thinner", Washington Post (Online edition), March 5, 2008"Baxter probe focuses on US-owned China plant – WSJ", Reuters, February 15, 2008"China Washes Hands on Heparin Purity", Wall Street Journal (Online edition) February 27, 2008
Upon investigation of these adverse events by the FDA, academic institutions, and the involved pharmaceutical companies, the contaminant was identified as an "over-sulfated" derivative of chondroitin sulfate, a closely related substance obtained from mammal or fish cartilage and often used as a treatment for arthritis.{{cite news |title=Heparin's Deadly Side Effects |url=http://www.time.com/time/magazine/article/0,9171,1858870,00.html |work=Time magazine |access-date=November 16, 2008 |date=November 13, 2008 |archive-url=https://web.archive.org/web/20081121194220/http://www.time.com/time/magazine/article/0%2C9171%2C1858870%2C00.html |archive-date=November 21, 2008 |url-status=dead |df=mdy-all }}{{cite web|url=https://www.fda.gov/downloads/NewsEvents/Newsroom/MediaTranscripts/UCM169335.pdf|title=FDA Media Briefing on Heparin|publisher=U.S. Food and Drug Administration|first=Julie|last=Zawisza|date=2008-03-29|access-date=2008-04-23|archive-date=May 8, 2017|archive-url=https://web.archive.org/web/20170508091011/https://www.fda.gov/downloads/NewsEvents/Newsroom/MediaTranscripts/UCM169335.pdf|url-status=dead}} Since over-sulfated chondroitin is not a naturally occurring molecule, it costs a fraction of true heparin precursor chemical, and mimics the in-vitro properties of heparin, the counterfeit was almost certainly intentional as opposed to an accidental lapse in manufacturing.{{cite news | first=Walt | last=Bogdanich | author-link=Walt Bogdanich | title=Heparin Find May Point to Chinese Counterfeiting | url=https://www.nytimes.com/2008/03/20/health/20heparin.html?hp=&adxnnl=1&adxnnlx=1206032448-8vAmKaxtXzpFTH3rUaNgBg | work=The New York Times | date=March 20, 2008 | access-date=2008-03-20 | archive-date=November 26, 2020 | archive-url=https://web.archive.org/web/20201126050437/https://www.nytimes.com/2008/03/20/health/20heparin.html?hp=&adxnnl=1&adxnnlx=1206032448-8vAmKaxtXzpFTH3rUaNgBg | url-status=live }} The raw heparin batches were found to have been cut from 2–60% with the counterfeit substance, and motivation for the adulteration was attributed to a combination of cost effectiveness and a shortage of suitable pigs in Mainland China. In mid-January 2008 Baxter voluntarily recalled some lots of multi-dose vials of Heparin in February in consultation with the FDA Baxter recalled the rest of their Heparin products.
=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).{{cite news | work = Bloomberg L.P. | url = https://www.bloomberg.com/apps/news?pid=newsarchive&sid=aTo3LbhcA75I | title = Baxter Sent Bird Flu Virus to European Labs by Error | date = February 24, 2009 | access-date = August 8, 2009 | archive-date = July 15, 2011 | archive-url = https://web.archive.org/web/20110715234330/http://www.bloomberg.com/apps/news?pid=newsarchive&sid=aTo3LbhcA75I | url-status = live }} 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,{{cite news | agency = The Canadian Press | url = https://www.ctvnews.ca/baxter-admits-flu-product-contained-live-bird-flu-virus-1.374503 | archive-url = https://web.archive.org/web/20090302043044/http://www.ctv.ca/servlet/ArticleNews/story/CTVNews/20090227/Bird_Flu_090227/20090227?hub=Health | url-status = live | archive-date = March 2, 2009 | title = Baxter admits flu product contained live bird flu virus | work = CTV | date = February 27, 2009 | access-date = July 4, 2009 | df = mdy-all }} 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.{{cite news | work = Financial Times | url = http://www.ft.com/cms/s/0/d7a3e3d6-1237-11de-b816-0000779fd2ac.html?nclick_check=1 | title = WHO mulls stricter transport of bio products | last = Jack | first = A | date = March 16, 2009 | access-date = June 16, 2009 | archive-date = May 17, 2011 | archive-url = https://web.archive.org/web/20110517124809/http://www.ft.com/cms/s/0/d7a3e3d6-1237-11de-b816-0000779fd2ac.html?nclick_check=1 | url-status = live }}
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%.{{cite news | url = http://www.kypost.com/content/news/commonwealth/story/Conway-Announces-Multi-Million-Dollar-Settlement/srxPJ5GaiU2gqFfhozY9-g.cspx | title = Conway Announces Multi-Million Dollar Settlement With Drug Company | last = Tracy | first = B | work = Kentucky Post | publisher = E. W. Scripps Company | date = July 3, 2009 | access-date = July 3, 2009 | archive-url = https://web.archive.org/web/20090709064537/http://www.kypost.com/content/news/commonwealth/story/Conway-Announces-Multi-Million-Dollar-Settlement/srxPJ5GaiU2gqFfhozY9-g.cspx | archive-date = July 9, 2009 | url-status = dead }}
References
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External links
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