07.20.22
Rank: #10 (Last year: #10)
$12.78 Billion
Prior Fiscal: $11.67 Billion
Percentage Change: +9.5%
R&D Expenditure: $534M
Best FY21 Quarter: Q4 $3.51B
Latest Quarter: Q1 $3.71B
No. of Employees: 60,000
Global Headquarters: Deerfield, Ill.
KEY EXECUTIVES:
José (Joe) E. Almeida, Chairman, President, and CEO
James (Jay) Saccaro, Exec. VP and CFO
Giuseppe Accogli, Exec. VP and COO
Amy Dodrill, President, Patient Support Systems and Global Surgical Solutions
Heather Knight, President, U.S. Hospital Products, Latin America and Canada
Reaz Rasul, President, Front Line Care
Lee Ann Schuette, President, Renal Care
Another year, another blockbuster medical device industry deal.
Baxter international proclaimed an agreement to acquire global medical technology leader—and previous top 30 member—Hillrom for about $12.4 billion last September.
“Baxter and Hillrom share a common vision for transforming healthcare to better serve all patients and providers,” Baxter chairman, president, and CEO Joe Almeida told the press. “Patients increasingly want to receive their care at home or nearby, while hospitals and other care providers are increasingly using digital health technologies to expand access, improve quality and lower costs. Baxter and Hillrom are uniting to meet the challenges of a rapidly evolving global healthcare landscape, while also creating significant value for all the stakeholders we serve.”
The Baxter-Hillrom combo creates a product offering that can support patients in hospitals, at home, and alternate care sites. Their combined therapeutic delivery, monitoring, blood purification, diagnostics, and communications capabilities stand to boost connected care opportunities to improve outcomes, workflow efficiencies, and data-driven insights—all while lowering the overall cost of healthcare.
Baxter will use its combined expertise in connectivity technology and integration, digital health solutions, data visualization and analytics, therapy development, and monitoring and sensing for a connected system that surrounds the patient and care team.
The deal was completed just 12 days before Christmas last year, creating a global medtech leader worth about $15 billion.
“We are invigorated by the potential to create value for patients and customers in new ways as a combined company,” said Almeida, “and we are energized by the power we bring together as one team united in our Mission to Save and Sustain Lives. We are very excited to welcome our Hillrom colleagues to Baxter.”
The deal created three new Baxter businesses: Patient Support Systems (connected care solutions: devices, software, communications, and integration technologies), Front Line Care (integrated patient monitoring and diagnostic technologies for respiratory therapy, cardiology, vision screening, and physical assessment), and Surgical Solutions (surgical video technologies, tables, lights, pendants, precision positioning devices, and other accessories). Integrating Hillrom aided the firm’s 10% revenue growth in 2021 and landed Baxter with $12.78 billion in sales for the year. U.S. sales captured $5.18 billion—rising 6% over the year prior—and international proceeds rose 12% with $7.6 billion.
The company’s Renal Care business posted $3.9 billion in sales last year, rising 4% over the prior year. This was mainly driven by positive foreign exchange rates and global peritoneal dialysis patient growth, according to Baxter’s annual report.
The next-gen Artificial Kidney 98 (AK 98) dialysis machine earned U.S. Food and Drug Administration (FDA) clearance last March. The latest version has encrypted, two-way connectivity so prescriptions can be pulled directly from an electronic medical record. Automatic alert resolution self-clears already corrected pressure alarms and helps avoid treatment stoppage due to brief pressure fluctuations related to patient movement. AK 98’s stable base design permits easy concentrate or portable reverse osmosis storage and transport as well.
Last June saw the release of the Sharesource Analytics 1.0 premium module, a digital health tool for home-based peritoneal dialysis (PD). The clinical management resource provides a dashboard with simplified trend data from home dialysis treatments to identify slow-building issues over 180 days of therapy. It also gives evidence-based guidance to resolve potential complications home patients may experience. The data offers clarity for patient adherence, catheter function, and therapy fatigue.
Medication Delivery revenue increased 4% in 2021, garnering $2.9 billion. The growth was due to favorable comparison over the COVID-stifled 2020 results, which came because of lower infusion system and related IV administration set demands. The business was also impacted by two Urgent Medical Device Corrections.
The first went out last June with an update in August and concerned Spectrum IQ infusion pumps. Two customers had informed Baxter of system errors happening in multiple pumps in their fleets after they had implemented changes to their network and server configurations. Performance anomalies caused multiple pump connectivity errors and placed stress on the pump’s processor, initiating a “watchdog” system error alarm and causing the pump to enter a fail-safe mode stopping all processes.
The customers’ issues were resolved by restoring network and server system performance to expected levels. To date, there had been no reports of adverse events or injuries. In response, Baxter developed a software upgrade for all Spectrum IQ pumps to assist how the pump responds to unstable network and server systems by reducing stress on pump memory and processing functions. The updated software became available in Q4 2021.
The second notice came last August with an update a month later concerning the Dose IQ Safety Software desktop application. The defect created a mismatch between linked drug identifiers in the Dose IQ interface and binary drug library loaded on the Spectrum IQ pump. Due to this, a linked drug ID may appear on the user interface but not the pump’s drug library. At the time, Baxter had received one report of a serious injury possibly associated with the issue. Baxter released a standalone validated software tool to identify linked drug IDs within each drug library related to the issue in Q4 2021.
Pharmaceuticals revenue climbed 9% last year to reach $2.3 billion. The growth came from Baxter’s buy of Caelyx and Doxil rights outside the U.S., which contributed $108 million in sales.
The company’s premix norepinephrine bitartrate in 5% dextrose injection, indicated to raise blood pressure in severe, acute hypotension patients, was released last September. Baxter’s formulation of norepinephrine has a shelf life of up to 21 months in a refrigerator, or up to 90 days at room temperature in overwrap and can be stored in automated dispensing cabinets at the point of care.
Clinical Nutrition proceeds rose 6% to $964 million, driven by U.S. PN therapy growth as well as positive foreign exchange rate changes. This was partially curtailed by lower vitamin sales internationally due to supply constraints.
Advanced Surgery sales climbed 10% to $977 million last year. The recovery of elective surgeries after the crux of COVID-19 mainly fueled this growth. The company’s February 2020 acquisition of Seprafilm also contributed $8 million in sales in Q1 2021.
Last July, the company also acquired assets related to the PerClot polysaccharaide hemostatic system from CryoLife for $68 million. The plant starch-based powder is used as an adjunctive hemostat to facilitate capillary, venous, or arteriolar vessel bleeding during multiple open and laparoscopic gynecologic, general, cardiovascular, and urology procedures. PerClot rapidly absorbs water from blood to create a gelled matrix that adheres to and forms a mechanical barrier with the bleeding tissue.
Acute Therapies raked in $782 million last year, rising 6%. Strong demand for continuous renal replacement therapy (CRRT) systems during COVID-19 were the main driver, as well as positive foreign exchange rates.
PrisMax 2 hit the market last May. The next-gen platform aims to simplify continuous renal replacement therapy (CRRT) and other organ therapy delivery. The system features new tools in the TruVue digital health portfolio and PrismaLung+ blood-gas exchanger to deliver extracorporeal carbon dioxide removal (ECCO2R) therapy to manage acute respiratory dysfunction. New advancements also improve critical information visibility and offer step-by-step onscreen instructions. Integrated safety features combine preventive measures to reduce clinical risk and human error with smart alarms to alert users.
The NEPHROCLEAR CCL14 test to predict persistent acute kidney injury (PS-AKI) gained CE mark approval in October with partner bioMérieux. Recently published studies have suggested CCL14 is the most predictive biomarker of PS-AKI compared with other AKI biomarkers like NGAL, CHI3L1, L-FABP, Cystatin C, Proenkephalin, and KIM-1. The test can help determine personalized treatment approaches including level of care and need for appropriate interventions.
BioPharma Solutions experienced the most meteoric rise last year, growing an impressive 38% to $669 million due to positive foreign exchange rates and, most notably, two new manufacturing partnerships with COVID-19 vaccine makers.
The business began a partnership last January for sterile manufacturing services in its Halle/Westfalen, Germany, facility for NVX-CoV2373, Novavax’s COVID-19 recombinant nanoparticle vaccine. The agreement expanded commercial-scale manufacturing to distribute the vaccine in the U.K. and Europe.
“The quest to develop vaccines for COVID-19 has reinforced the opportunity for industry partners to work together and contribute their unique capabilities and expertise for the benefit of all,” Marie Keeley, VP of BioPharma Solutions, told the press.
Last March, Baxter partnered with Moderna to provide fill/finish sterile manufacturing services and supply packaging in its Bloomington, Ind., facility for about 60-90 million doses of Moderna’s COVID-19 vaccine. The site has capabilities and expertise in parenteral delivery systems and clinical and commercial vaccine manufacturing, including preventive and seasonal vaccines.
The new Patient Support Systems, Front Line Care, Surgical Solutions businesses acquired from Hillrom earned $115 million, $70 million, and $27 million respectively, last year. Remaining revenue (categorized as “Other” in the firm’s annual report) collected $109 million, rising 4% over the prior year.
Last August Baxter extended its existing partnership with Amazon Web Services (AWS) to enable cloud technology solutions for the company’s ongoing digital transformation. The companies have been working for years to move Baxter’s physical data centers to the cloud, and the work is nearly complete. The benefits from this transformation are potentially increased speed to market for new tools and solutions; the ability to quickly expand technology solutions to new geographies; and significant cost savings.
“Baxter is using AWS’s broad and deep portfolio of cloud services to deliver new insights and digital health solutions for the millions of patients and caregivers that use their portfolio of medical products,” Greg Pearson, VP of worldwide commercial sales at AWS, told the press. “Baxter’s digital transformation is helping the company unlock the potential of healthcare data and develop a more personalized approach to care, using the unmatched reliability and proven security of one of the world’s leading cloud providers.”
$12.78 Billion
Prior Fiscal: $11.67 Billion
Percentage Change: +9.5%
R&D Expenditure: $534M
Best FY21 Quarter: Q4 $3.51B
Latest Quarter: Q1 $3.71B
No. of Employees: 60,000
Global Headquarters: Deerfield, Ill.
KEY EXECUTIVES:
José (Joe) E. Almeida, Chairman, President, and CEO
James (Jay) Saccaro, Exec. VP and CFO
Giuseppe Accogli, Exec. VP and COO
Amy Dodrill, President, Patient Support Systems and Global Surgical Solutions
Heather Knight, President, U.S. Hospital Products, Latin America and Canada
Reaz Rasul, President, Front Line Care
Lee Ann Schuette, President, Renal Care
Another year, another blockbuster medical device industry deal.
Baxter international proclaimed an agreement to acquire global medical technology leader—and previous top 30 member—Hillrom for about $12.4 billion last September.
“Baxter and Hillrom share a common vision for transforming healthcare to better serve all patients and providers,” Baxter chairman, president, and CEO Joe Almeida told the press. “Patients increasingly want to receive their care at home or nearby, while hospitals and other care providers are increasingly using digital health technologies to expand access, improve quality and lower costs. Baxter and Hillrom are uniting to meet the challenges of a rapidly evolving global healthcare landscape, while also creating significant value for all the stakeholders we serve.”
The Baxter-Hillrom combo creates a product offering that can support patients in hospitals, at home, and alternate care sites. Their combined therapeutic delivery, monitoring, blood purification, diagnostics, and communications capabilities stand to boost connected care opportunities to improve outcomes, workflow efficiencies, and data-driven insights—all while lowering the overall cost of healthcare.
Baxter will use its combined expertise in connectivity technology and integration, digital health solutions, data visualization and analytics, therapy development, and monitoring and sensing for a connected system that surrounds the patient and care team.
The deal was completed just 12 days before Christmas last year, creating a global medtech leader worth about $15 billion.
“We are invigorated by the potential to create value for patients and customers in new ways as a combined company,” said Almeida, “and we are energized by the power we bring together as one team united in our Mission to Save and Sustain Lives. We are very excited to welcome our Hillrom colleagues to Baxter.”
The deal created three new Baxter businesses: Patient Support Systems (connected care solutions: devices, software, communications, and integration technologies), Front Line Care (integrated patient monitoring and diagnostic technologies for respiratory therapy, cardiology, vision screening, and physical assessment), and Surgical Solutions (surgical video technologies, tables, lights, pendants, precision positioning devices, and other accessories). Integrating Hillrom aided the firm’s 10% revenue growth in 2021 and landed Baxter with $12.78 billion in sales for the year. U.S. sales captured $5.18 billion—rising 6% over the year prior—and international proceeds rose 12% with $7.6 billion.
The company’s Renal Care business posted $3.9 billion in sales last year, rising 4% over the prior year. This was mainly driven by positive foreign exchange rates and global peritoneal dialysis patient growth, according to Baxter’s annual report.
The next-gen Artificial Kidney 98 (AK 98) dialysis machine earned U.S. Food and Drug Administration (FDA) clearance last March. The latest version has encrypted, two-way connectivity so prescriptions can be pulled directly from an electronic medical record. Automatic alert resolution self-clears already corrected pressure alarms and helps avoid treatment stoppage due to brief pressure fluctuations related to patient movement. AK 98’s stable base design permits easy concentrate or portable reverse osmosis storage and transport as well.
Last June saw the release of the Sharesource Analytics 1.0 premium module, a digital health tool for home-based peritoneal dialysis (PD). The clinical management resource provides a dashboard with simplified trend data from home dialysis treatments to identify slow-building issues over 180 days of therapy. It also gives evidence-based guidance to resolve potential complications home patients may experience. The data offers clarity for patient adherence, catheter function, and therapy fatigue.
Medication Delivery revenue increased 4% in 2021, garnering $2.9 billion. The growth was due to favorable comparison over the COVID-stifled 2020 results, which came because of lower infusion system and related IV administration set demands. The business was also impacted by two Urgent Medical Device Corrections.
The first went out last June with an update in August and concerned Spectrum IQ infusion pumps. Two customers had informed Baxter of system errors happening in multiple pumps in their fleets after they had implemented changes to their network and server configurations. Performance anomalies caused multiple pump connectivity errors and placed stress on the pump’s processor, initiating a “watchdog” system error alarm and causing the pump to enter a fail-safe mode stopping all processes.
The customers’ issues were resolved by restoring network and server system performance to expected levels. To date, there had been no reports of adverse events or injuries. In response, Baxter developed a software upgrade for all Spectrum IQ pumps to assist how the pump responds to unstable network and server systems by reducing stress on pump memory and processing functions. The updated software became available in Q4 2021.
The second notice came last August with an update a month later concerning the Dose IQ Safety Software desktop application. The defect created a mismatch between linked drug identifiers in the Dose IQ interface and binary drug library loaded on the Spectrum IQ pump. Due to this, a linked drug ID may appear on the user interface but not the pump’s drug library. At the time, Baxter had received one report of a serious injury possibly associated with the issue. Baxter released a standalone validated software tool to identify linked drug IDs within each drug library related to the issue in Q4 2021.
Pharmaceuticals revenue climbed 9% last year to reach $2.3 billion. The growth came from Baxter’s buy of Caelyx and Doxil rights outside the U.S., which contributed $108 million in sales.
The company’s premix norepinephrine bitartrate in 5% dextrose injection, indicated to raise blood pressure in severe, acute hypotension patients, was released last September. Baxter’s formulation of norepinephrine has a shelf life of up to 21 months in a refrigerator, or up to 90 days at room temperature in overwrap and can be stored in automated dispensing cabinets at the point of care.
Clinical Nutrition proceeds rose 6% to $964 million, driven by U.S. PN therapy growth as well as positive foreign exchange rate changes. This was partially curtailed by lower vitamin sales internationally due to supply constraints.
Advanced Surgery sales climbed 10% to $977 million last year. The recovery of elective surgeries after the crux of COVID-19 mainly fueled this growth. The company’s February 2020 acquisition of Seprafilm also contributed $8 million in sales in Q1 2021.
Last July, the company also acquired assets related to the PerClot polysaccharaide hemostatic system from CryoLife for $68 million. The plant starch-based powder is used as an adjunctive hemostat to facilitate capillary, venous, or arteriolar vessel bleeding during multiple open and laparoscopic gynecologic, general, cardiovascular, and urology procedures. PerClot rapidly absorbs water from blood to create a gelled matrix that adheres to and forms a mechanical barrier with the bleeding tissue.
Acute Therapies raked in $782 million last year, rising 6%. Strong demand for continuous renal replacement therapy (CRRT) systems during COVID-19 were the main driver, as well as positive foreign exchange rates.
PrisMax 2 hit the market last May. The next-gen platform aims to simplify continuous renal replacement therapy (CRRT) and other organ therapy delivery. The system features new tools in the TruVue digital health portfolio and PrismaLung+ blood-gas exchanger to deliver extracorporeal carbon dioxide removal (ECCO2R) therapy to manage acute respiratory dysfunction. New advancements also improve critical information visibility and offer step-by-step onscreen instructions. Integrated safety features combine preventive measures to reduce clinical risk and human error with smart alarms to alert users.
The NEPHROCLEAR CCL14 test to predict persistent acute kidney injury (PS-AKI) gained CE mark approval in October with partner bioMérieux. Recently published studies have suggested CCL14 is the most predictive biomarker of PS-AKI compared with other AKI biomarkers like NGAL, CHI3L1, L-FABP, Cystatin C, Proenkephalin, and KIM-1. The test can help determine personalized treatment approaches including level of care and need for appropriate interventions.
BioPharma Solutions experienced the most meteoric rise last year, growing an impressive 38% to $669 million due to positive foreign exchange rates and, most notably, two new manufacturing partnerships with COVID-19 vaccine makers.
The business began a partnership last January for sterile manufacturing services in its Halle/Westfalen, Germany, facility for NVX-CoV2373, Novavax’s COVID-19 recombinant nanoparticle vaccine. The agreement expanded commercial-scale manufacturing to distribute the vaccine in the U.K. and Europe.
“The quest to develop vaccines for COVID-19 has reinforced the opportunity for industry partners to work together and contribute their unique capabilities and expertise for the benefit of all,” Marie Keeley, VP of BioPharma Solutions, told the press.
Last March, Baxter partnered with Moderna to provide fill/finish sterile manufacturing services and supply packaging in its Bloomington, Ind., facility for about 60-90 million doses of Moderna’s COVID-19 vaccine. The site has capabilities and expertise in parenteral delivery systems and clinical and commercial vaccine manufacturing, including preventive and seasonal vaccines.
The new Patient Support Systems, Front Line Care, Surgical Solutions businesses acquired from Hillrom earned $115 million, $70 million, and $27 million respectively, last year. Remaining revenue (categorized as “Other” in the firm’s annual report) collected $109 million, rising 4% over the prior year.
Last August Baxter extended its existing partnership with Amazon Web Services (AWS) to enable cloud technology solutions for the company’s ongoing digital transformation. The companies have been working for years to move Baxter’s physical data centers to the cloud, and the work is nearly complete. The benefits from this transformation are potentially increased speed to market for new tools and solutions; the ability to quickly expand technology solutions to new geographies; and significant cost savings.
“Baxter is using AWS’s broad and deep portfolio of cloud services to deliver new insights and digital health solutions for the millions of patients and caregivers that use their portfolio of medical products,” Greg Pearson, VP of worldwide commercial sales at AWS, told the press. “Baxter’s digital transformation is helping the company unlock the potential of healthcare data and develop a more personalized approach to care, using the unmatched reliability and proven security of one of the world’s leading cloud providers.”