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 Idec and Novo Nordisk are taking aim at Baxter's Advate, and a less-frequent dosing schedule may be enough to convince physicians and patients to switch from Baxter's established brand.
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 

5 utfordringer for investorer 
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