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.
by David Cassak
One of the best-known names in the medical products industry, Baxter International Inc. may also be one of the...
Join thousands of industry professionals who rely on In Vivo for daily insights
Already a subscriber?
A look at Novo Nordisk, Eli Lilly and other companies' late-stage clinical studies of GLP-1 drugs in indications ranging from neurodegeneration to oncology, and alcoholic liver disease to autoimmune conditions.
Metsera CEO Whit Bernard applies an unconventional leadership philosophy to develop next-generation obesity therapeutics, including monthly GLP-1 injections and oral peptides.
A Q&A with DeAnn Smith, partner and co-chair of the Patent Trial and Appeal Board Proceedings Practice Group at law firm Foley Hoag.
Advanced AI is revolutionizing sales enablement by addressing training gaps and performance challenges. Used correctly, it can help to bridge the sales-marketing divide, accelerate ramp-up times and provide managers with data-driven insights.
Devika Wood, CEO of Brain+, explains the importance of developing health tech solutions for dementia and the growing need to both raise awareness and improve overall access to nondrug interventions like CST.
In a challenging funding environment for biopharma, strategic dealmaking has become a critical growth engine. In Vivo explores what it truly takes to navigate high-stakes acquisitions and partnerships, drawing on insights from seasoned industry leaders.
While the adoption of most favored nation drug pricing in the US stands to affect Japanese biopharma firms now heavily reliant on this market, it might also present an opportunity for pricing and policy reforms at home.
