This article is more than 5 years old. Information may no longer be current.
Revaclear dialyzer recall in second quarter will cost Baxter $20 million
Click Here to Manage Email Alerts
A recall of its Revaclear hemodialyzers in June will cost Baxter Renal Care around $20 million in lost revenues this year, company officials said during a recent second-quarter earnings call. Growth for the rest of the year for the renal care business of the Deerfield, Illinois-based company should be close to 2%, company officials said.
“ ... The impact of supply disruption from the Revaclear dialyzer is expected to negatively impact full-year sales by approximately $20 million,” Joe Saccaro, chief financial officer of the company, said during the call. “We expect to return to normal inventory level by the end of the year.”
Second-quarter financial results
Worldwide sales for Baxter products in the second quarter totaled approximately $2.8 billion, which increased 4% on both a constant currency and operational basis, Saccaro reported. Sales in the United States totaled $1.2 billion, decreasing 1% on both a reported and operational basis. International sales of $1.6 billion reflect a 1% increase on a reported basis and 8% on a constant currency basis. Global sales for renal care were $910 million, advancing 3% on a constant currency basis.
Baxter said key growth drivers in the second quarter included Baxter’s PD and continuous renal replacement therapies, IV infusion systems, hemostats and sealants, and certain generic pharmaceuticals.
“Performance in the quarter was driven by high single-digit growth in PD therapies globally,” Saccaro said. “Partially offsetting this growth was the lower sales of select in-center HD products including the bloodline’s business exited earlier this year, which negatively impacted sales in the quarter by approximately $14 million,” he said.
Trump initiative a boost for PD
Company chair and CEO Joe Almeida said the new Advancing American Kidney Health initiative announced by the White House last month “would have a transformative impact on the treatment of end-stage renal disease or ESRD in the U.S.”
“This is part of an emerging trend taking shape in worldwide as payers, clinicians and patients increasingly embraced home PD as a frontline ESRD treatment option based on key economic therapeutic and lifestyle benefits,” he said.
Almeida said Baxter would “ fully support” the initiative to broaden the adoption of home dialysis across the United States. The company already announced it was making capital investments of $500 million to significantly increase production capacity and meet new patients’ needs in-line with proposed CMS models.
“These investments will be scaled to align with the patient and market dynamics across the innovation curve; increased demand would in turn help accelerate renal care growth and contribute positively to Baxter’s previously communicated financial estimates,” Almeida said.
References:
https://investor.baxter.com/investors/events-and-news/default.aspx