Morningstar Rating

Stock Research and Analysis

by Karen Andersen, CFA

Bulls Say

More than two thirds of Baxter's revenue stems from market-leading products, a tribute to its global competitive advantages with products like Advate and Gammagard.
Following the biopharmaceuticals spin-off in 2015, we think this new firm and the new medical-products-focused Baxter will remain diversified and retain significant competitive advantages.
Emerging markets are a prime source of growth for many drug firms, and hemophilia demographics point to a large unmet need in countries such as Brazil, Russia, and China. Read more 

Bears Say

Biogen's Eloctate is taking aim at Baxter's Advate, and more disruptive threats like Roche's ACE910 or Alnylam's ALN-AT3 could provide patients with an even more convenient option by 2020.
Baxter shut down its Los Angeles plasma fractionation facility in 2012; while now operational, its near-term capacity does not allow for above-market growth.
While Baxter's acquisition of Gambro strengthens the firm's position in the dialysis market, Gambro's historical growth has been flat. Baxter's goal of accelerating organic and Gambro-sourced growth over the next few years could prove lofty. Read more 

Management

We assign Baxter a Standard stewardship rating. Robert Parkinson Jr. has been chairman and CEO since 2004. Before arriving at Baxter, he spent 25 years at Abbott Labs, serving for a time as president and COO. Parkinson has focused on investing in Baxter's   Read more 

Profile

Baxter manufactures and markets therapies for a wide range of diseases. BioScience products include plasma-based therapies (such as Gammagard for immune disorders) and recombinant   Read more 

Baxter's Spin-Off Strategy Is Promising 
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