Baxter International Inc. Case Study

Introduction

Baxter International Inc. is a healthcare company that leads in the manufacture of drugs and medical equipment. The company makes medical products with its three divisions such as drugs and vaccines, dialysis equipment, and IV supplies. The bioscience or biotechnology division of Baxter specifically manufactures protein and plasma therapies to treat hemophilia and other immune disorders. It also includes the vaccines and biological sealants that are used to close wounds from surgeries. Baxter excels in making intravenous supplies and systems through the Medication Delivery business, including infusion pumps and inhaled analgesics (Baxter, 2008). Its renal business makes dialyzers and other products intended for the process of treating an end-stage renal disease or ESRD (Baxter Corporate Presentation). Generally, the company is known for its specialized medical products, and about eighty percent of its revenue comes from the United States, Europe, and Canada, while the rest accounts from Asia and Latin America. The company has been benefited from strong growth in its history and emerges in manufacturing a lot of products for the medical field.

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Baxter Company, founded in the year 1930, became famous as the first company that makes intravenous solutions that are commercially available. The first two years of the company made them distribute the products in certain distribution areas and opened its very first manufacturing facility through a renovated automobile showroom in Illinois. This was pioneered by the owner, Dr. Donald E. Baxter. By the year 2000s, Baxter became one of the leading health care companies in creating Global Healthcare Exchange which is viewed as an independent company that sells and distributes medical equipment. Also, Baxter is regarded later as an internet-based company that administers the exchange of information intended to device healthcare products and medical services worldwide. But in spite of Baxter’s success, issues still arise and bring negative impacts for the company. In 2008, Baxter’s blood-thinning products were put into quality issues. Accordingly, they were linked to a number of deaths in the United States. Through the inspection of one of the raw ingredients used by the company, it was founded to be infected by a substance that relates to its own ingredient and makes the drug sub-potent for use (Baxter, 2008).

The products of Baxter International Inc. cover different areas in which they focus on manufacturing and producing as what the official website of the company details. It is significant to note that the available products depend on the healthcare sector in various locations. However, the United States’ areas represent a wide scope for the products and services of Baxter. Anesthesia Products include IV Anesthesia, Pain Pumps, Regional Anesthesia, and Anesthetic Pharmaceuticals. The Biopharmaceuticals include treatment for Hemophilia, Antibody Therapies, Critical Care, Pulmonology, and BioSurgery. Blood Collection and Transfusion is done through Automated Component Collection, Manual Collection, and Processing Systems and offers Ancillary Blood Products. The medication management area covers the distribution of Infusion Pumps, IV Fluids and Medications, IV Tubing and Access Devices, Nutrition, and Patient Care systems. Oncology is comprised of Chemoprotectants, Elastomeric Pumps, Cellular Therapy, and Specialty Collections, while the renal area offers Peritoneal Dialysis, Hemodialysis, CRRT, and Software (Baxter, 2008).

Due to the company’s commitment to research and development, the history of Baxter is made up of pioneering discoveries in the medical field and constantly pursues innovations using technologies through the research facilities. The company primarily commits to the application of innovative science to develop specialized therapeutics and medical products that will save and sustain the lives of patients. Thus, Baxter caters to manufacture the best medical developments that will help people with various kinds of health problems and provide special healthcare for all.

Discussion

Baxter International Inc. basically sets the goal of saving and sustaining the lives of people in the world. The company manufactures products and services to help a lot of people in treating health conditions such as hemophilia and kidney diseases. Baxter’s mission is to develop products that will save lives through innovative advances in science. Being recognized as one of the most excellent companies in healthcare, Baxter aims at being the leader in the market and will serve as a chosen partner in improving the quality and access to healthcare with high-quality investment and takes responsibilities as a member of the community (Baxter, 2008).

The company does its own researches, has its own medical facility and laboratory where the studies are conducted for the advances that they have in science (Baxter, 2008). Baxter adopts global practices in governing its business. It gives clarification with regard to the expectations of people. Although specific details are not provided by the company through their official website, general information is given for the knowledge regarding the details of the accounts for its medical business. The technological platforms of Baxter International Inc., as what is listed in the company’s profile, include the drug delivery, medical-grade plastics, designs for the hardware and software, development and manufacturing of protein, separation, and purification, and sterilization. In addition, pipeline technologies constrain future growth opportunities for the company.

Bioscience

Baxter’s bioscience business is the part of the company that leads in making plasma-based and recombinant proteins and therapies that are used to care for hemophilia, immune disorders, and hereditary emphysema. Sales in the bioscience business account for a 42% share of the overall business and suggest a productive division in healthcare. The field also includes biosurgery products for homeostasis, wound sealing, and the regeneration of tissues as well as its vaccines (Baxter Corporate Presentation).

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The bioscience research and development considers the use of the Vero-cell technology platform in producing early and late-stage vaccines such as the CELVAPAN, a candidate pandemic vaccine. Another objective of bioscience is to develop higher dosage strengths and longer-acting forms of recombinant clotting factors for the therapy of hemophilia. Evaluation for the probable adult stem cell therapies in treating chronic myocardial ischemia and critical limb ischemia is also one of the bioscience’s initiatives. Studies with regard to the combination of fibrin sealant to regenerate tissue and bone are made using high technology. Further investigations of the GAMMAGARD LIQUID as a potential cure for neurological disorders such as Alzheimer’s disease are also included as one of the objectives of the company (Baxter Corporate Presentation). Among the three divisions of Baxter, bioscience is seen as the field or division that contributes the biggest portion of the overall profit of the company. Thus this division receives most of the company’s research and development efforts.

Medication Delivery

This area of business accounts for 38% of the company’s overall sales. It ranks second among the three areas where the company is involved. Medication delivery suggests the company’s leadership in making IV solutions, nutritional therapies, premixed drugs, drug reconstitution systems, prefilled vials, syringes, electronic infusion pumps, and administration. These set the products that are used in delivering fluids and drugs to the patients. Generally, the medical delivery business is comprised of the IV solutions, containers and compounding systems or services, general anesthetic agents, critical-care drugs, contract manufacturing services, and drug packaging and formulation technologies. Medical delivery’s main objectives consist of the development of V-Link, which is the first IV connector without a needle and has an antimicrobial coating in killing common pathogens such as MRSA. The development of advanced infusion systems and related technologies to respond to the need of delivering biological therapies and drugs is also one of the objectives of medical delivery. Studies with regard to the subcutaneous combination with HYLENEX as an alternative to IV administration for the existing and future drugs are adds-up to the whole concept (Baxter Corporate Presentation).

Renal

The third portion of the company is the rental business. It takes up 20% of the total company sales. Because of the innovations made by Baxter in this area, it made it as the leader for manufacturing products for the peritoneal dialysis. Peritoneal dialysis is a home-based therapy for the end-stages of renal diseases. This division also distributes hemodialysis products which include instruments, bloodlines and dialyzers, and constant renal replacement therapy products for the acute renal failure. It also offers instruments, bloodlines, and solutions for dialysis (Baxter Corporate Presentation).

Renal business also provides programs for patients and clinical education in order to help dialysis patients and caregivers to comprehend the multifaceted information about kidney diseases, its development, and the treatment processes. Another function supervised by the renal business is the direct-to-home delivery of dialysis solutions and supplies. The objectives consider the collaboration of the business with DEKA for the development of the next-generation home-hemodialysis machine and the development of a new automated peritoneal machine that is particularly framed for the rising markets (Baxter Corporate Presentation).

Baxter Group LLC

The Baxter Group LLC specializes in the conversion of ideas into the market realities. This company is based in Connecticut. It uses its vast networks and offices around the globe in order to come up with new ideas in what and how to manufacture its products. This helps in building a strong realization of the products into a positive one from drawn ideas and proposals (Business Wire, 2002). In one of the articles, the Summit National Consolidation Group, Inc. has partnered with the Baxter Group LLC in supervising the company with the package design and marketing of its BioSolvant(R) products. Basically, the transactions between the two companies takes account the partnership for the design of the packages and marketing the consumer products. Baxter Group will be the one creating the designs for packages while the Summit National Consolidation Group takes charge of the campaigns and designs for its advertisements (Business Wire, 2002). This suggests that not all the tasks are accomplished within the company and partners take the responsibilities of administrating significant tasks that enables the company to operate in a broader sense.

A highlight is put on one of the most significant adjustments that Baxter made for the changes in the medical industry which is the idea of a ‘package deal’. This involves package deals for hospitals’ products and services needs. This includes the traditional products of the company like the intravenous supplies, blood therapy products and hemodialysis and the urololical goods with the combination of consulting services to help the hospital institutions in minimizing its costs relating to the important products and services (FTC, 2007). With this project, the company aims at settling contacts with the hospitals for initiating and expanding the home health care systems. However, profit making in the home health care requires the company to depend on a large patient pool. This is because a lot of patients were not long-terms or do not stay in the hospital for a long time and hence Baxter does not have any contact or link to that specific pool. This somehow seems to be one of the difficulties that Baxter deals with.

Regulatory Affairs

Regulatory affair is handled by its Vice President for Global Regulatory Affairs and Medical Vigilance, Steven Caffé. Baxter International Inc. assists the healthcare professionals and the patients through the treatment of intricate medical conditions, which include cancer, immune disorders, hemophilia, kidney disease and trauma. The company generally shows its proficiency in medical devices, pharmaceuticals and biotechnology in creating a substantial difference for the lives of the patients. In an effective global regulatory strategy, it maximizes the commercial opportunities while lessening the risk. Baxter incorporates the regional needs and at the same time considers the bigger global scenario. Though the approach is advantageous and pleasing, active global regulatory environment is one of the challenges that Baxter faces. This is specifically in the area of preparing for the differing needs of other global market participants. A lot of effort should be exerted by the company in formulating an effective and efficient global strategy.

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Researches

As pharmaceuticals emerge in the industry, the treatment for Alzheimer’s disease was pioneered by Baxter. Deerfield-based Baxter International Inc. in particular, showed a drug for battling out with such disorder, Alzheimer’s (Japsen, 2008). The Alzheimer’s Association International Conference regarding the disease claimed that the treatment of Baxter’s Gammagard immune system is one of the varied combinations of the new perspectives in destroying the disease. Other companies that studied the immune system-based therapies prevailed that their experiment regarding the treatment of Alzheimer’s disease resulted in the identification of bapineuzumab and was associated to the brain swelling, which were similar to what Baxter found out. The ideas with what the drug that Baxter introduced implies that the own immune system of the body can probably clear the brain of a protein fragment which is determined as a beta-amyloid. This is developed and thought to be a factor for the development and succession of Alzheimer’s disease (Japsen, 2008).

Conclusion

Baxter International Inc. caters to the development of medical products and services which help the patients and assist the medical professional for treating a wide variety of diseases. Most of the researches are done within the company. Baxter does not shoulder all the tasks for its operations; hence, it shares with other affiliates. It creates partnerships with other companies in order to optimize the marketing of its products and services. Baxter serves the hospitals and other medical institutions by giving a package deal plan in which the institution could minimize its cost. The deal also results in the provision of appropriate products and services that will help sustain a healthy life and save those patients who are in critical conditions. The technological platforms of the company also depict the same framework as what its other competitors have. Accordingly, these platforms are viewed through the delivery of drug, medical-grade plastics, hardware and software designs, development and making of proteins, sterilization, separation, and purification. Baxter is involved in administering three areas or businesses in the company which are the bioscience, medical delivery and the renal business. Among the three, bioscience is where Baxter seems to be focused more as it is prevailed through the percentage of its sales. But still, the other two establish a competitive percentage for its overall sales.

References

“About Baxter”, 2008. Web.

“Baxter Corporate Presentation”, 2008. Web.

FTC. (2007). “Ftc Decision In Baxter/Immuno Acquisition To Preserve Competition In Two Markets For Plasma Products Ensuring Lower Prices For Consumers And Continued Research And Development”.

Business Wire. (2002). “Summit National Partners With The Baxter Group”. Web.

Japsen, B. (2008). “Baxter boosted by drug’s head start; Alzheimer’s candidate used for other diseases”, Chicago Tribune. Web.

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