Sector: Health Care | Focus: Health Care Equipment
HQ: Deerfield, Illinois
Financial Risks
Baxter faces risks from supply chain disruptions (material shortages, higher costs), global economic uncertainty (Ukraine war, inflation), regulatory hurdles (FDA approvals, EU regulations), potential litigation (product liability, environmental claims), and the uncertain outcome of the Kidney Care sale. Hurricane Helene caused damage and disruption, impacting sales and adding remediation costs. Credit rating downgrades and potential funding issues are also noted.
Financial Upside
The potential sale of the Kidney Care business to Carlyle for $3.8 billion (with estimated after-tax proceeds of $3.15-$3.25 billion) presents a significant financial upside. The company plans to use these proceeds to repay debt. The sale of the BioPharma Solutions business in 2023 yielded $3.96 billion in cash proceeds. The company also has $1.3 billion remaining under its share repurchase program.
