Baxter's New Look
Following its 1985 acquisition of American Hospital Supply, Baxter International reigned as one of the leading hospital suppliers, with a strong distribution component and an extremely broad product line. But though the strategy seemed right to appeal to a new kind of hospital customer, it did little to help Baxter grow as a corporation, and the company's stock hit a fallow period in the late 1980s and early 1990s. Beginning in the mid 1990s, Baxter embarked on a program to bring focus and discipline, in the process turning itself into a very different kind of business. By the end of the decade, it had shed virtually all of the businesses it acquired in the AHSC deal, re-focused on long-time efforts in dialysis and IV/medication delivery, and quietly built a huge biopharmaceutical business. Some questions linger for Baxter as it pursues a strategy with one foot in the medical device industry and one in biotech, most notably whether Baxter's R&D team can expertly maneuver in biopharmaceuticals. Still, the strategy seems to be working: Baxter is a leader in dialysis and IV solutions, has built a $2.5 billion biotech business, and has seen its market cap soar.
You may also be interested in...
New data seems to indicate an uptick in the percentage of premarket applications that receive a major deficiency letter. See what US FDA spokesperson Alison Hunt said about strategies to avoid them.
Japanese firm says it will end SHP647 development after trying unsuccessfully to find takers for GI drug similar to its blockbuster Entyvio, first flagged by European authorities over competition worries.
The Environmental Working Group and US PIRG suggest that beauty and personal-care firms should avoid using talc in loose powders, if not all cosmetic products, and that the US FDA should consider banning the ingredient due to the potential for asbestos contamination, among other concerns.