Baxter International
Encyclopedia
Baxter International Inc. , is an American
health care
company with headquarters in Deerfield, Illinois
. The company primarily focuses on products to treat hemophilia, kidney disease, immune disorders and other chronic and acute medical conditions. The company had 2009 sales of $12.6 billion, across three manufacturing divisions: BioScience (producing recombinant and blood plasma proteins to treat hemophilia and other bleeding disorders; plasma-based therapies to treat immune deficiencies and other chronic and acute blood-related conditions; products for regenerative medicine; and vaccines); Medication Delivery (producing intravenous solutions and other products used in the delivery of fluids and drugs to patients, as well as inhalation anesthetics and contract manufacturing services); and Renal (providing products to treat end-stage renal disease, or irreversible kidney failure, including solutions and other products for peritoneal dialysis and hemodialysis).
The company was involved in several controversies. In 2001, malfunctioning dialysis machines resulted in several deaths; in 2008 the company supplied contaminated heparin
; in 2009 lethal H5N1 avian flu virus was delivered to laboratories across Europe mixed with seasonal influenza vaccines; also, the company was charged with excessive billing of Kentucky Medicaid
.
Baxter International is recognized as a leader in environmental controls and commitments.
, as a manufacturer and distributor of intravenous therapy
solutions. Baxter's interest was bought out in 1935 by Ralph Falk, who established a research and development
function. In 1939 the company developed a vacuum-type collection container, extending the shelf life
of blood from hours to weeks. In 1953 William Graham became the company's chief executive officer
, and in 1954 expanded operations outside of the United States
by opening an office in Belgium
. In 1956 Baxter International introduced the first functioning artificial kidney
, and in 1971 became a member of the Fortune 500
. Vernon Loucks became president and CEO in 1980; throughout the 1980s and 1990s the company expanded to deliver a wider variety of products and services (including vaccines, a greater variety of blood products) through acquisitions of various companies. Sales and production facilities also expanded throughout the world. In 1993 the company pled guilty to a felony
in relation to an anti-boycott
law in the United States and in 1996, the company entered into a four-way, $640 million settlement with haemophilia
cs 1999 in relation to blood clotting
concentrates that were infected with HIV
. Under pressure from shareholders due to poor performance and an unsuccessful merger, Loucks was forced to resign and was replaced by Harry Kraemer, who was replaced by Robert Parkinson in 2004.
Sales in 2009 were 42% in the United States, 33% in Europe, 13% in Asia Pacific, 8% in Latin America and 4% in Canada. In 2009, Baxter had approximately 49,700 employees. The breakdown of regional employees in 2009 was 41% in the United States; 30% in Europe; 14% in Asia Pacific; 12% in Latin America; and 2% in Canada. In 2009, Baxter International spent $917 million on research and development.
for the H1N1 ("swine flu") influenza as early as July of the same year. The company has been one of several working with the World Health Organization
and United States Centers for Disease Control and Prevention
on the vaccine, and uses a cell
-based rather than egg
-based technology that allows a shorter production time.
died within hours of receiving dialysis
from Baxter products. Eventually 51 more patients would die; though the cause was unclear, the company issued a worldwide recall of two lines of filters, the sole common link between all the equipment used by the patients. Harry Kraemer, the company president at the time, apologized for the errors, shut down the factory producing filters, alerted competitors of the issue and took a 40% pay cut along with a 20% cut for other executives. The company's earnings dropped by $
189 million as a result of the issues. The company took quick action to reduce the impact of the event and prevent future recurrence and as a result suffered minimal damage to its reputation.
, and launched an investigation.
Investigation into the contamination has focused on raw heparin produced by Changzhou Scientific Protein Laboratories, a China based branch of Scientific Protein Laboratories, based in Waunakee, Wisconsin
. Due to procedural errors Changzhou SPL's facilities was never subject to an inspection by US FDA official, as required by FDA rules. The factory's products were also never certified as safe for use in pharmaceutical products by Chinese FDA officials as Changzhou SPL was itself registered as a chemical company and not a drugs manufacturer. Though Baxter was first to recall heparin because of increased adverse reactions, after the contaminant was identified and testing protocols were shared with other manufacturers globally, over a dozen other companies in nearly a dozen countries issued recalls, which linked back to certain supply points in China.
. Though the serious consequences were avoided by the lab in the Czech Republic, Baxter claimed the failed controls over the distribution of the virus were 'stringent' and there was 'little chance' of the lethal virus harming humans.
Attorney General Jack Conway
announced a settlement between the state and Baxter Healthcare Corporation, a subsidiary of Baxter International, worth $2 million. The company had been inflating the cost of the intravenous drugs
sold to Kentucky Medicaid, at times as much as 1300%.
ordered Baxter to pay $144 million to patients who had been infected with Hepatitis C
after doctors wrongly reused dirty medical supplies to administer propofol
to patients. The jury granted the award, despite the fact that the label for propofol clearly states that it is for single-patient use only and that aseptic procedures should be used at all times.
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...
health care
Health care
Health care is the diagnosis, treatment, and prevention of disease, illness, injury, and other physical and mental impairments in humans. Health care is delivered by practitioners in medicine, chiropractic, dentistry, nursing, pharmacy, allied health, and other care providers...
company with headquarters in Deerfield, Illinois
Deerfield, Illinois
Deerfield is a village in Lake County, Illinois, United States and is located approximately 25 miles north of Chicago, Illinois. A portion of the village is in Cook County, Illinois, United States...
. The company primarily focuses on products to treat hemophilia, kidney disease, immune disorders and other chronic and acute medical conditions. The company had 2009 sales of $12.6 billion, across three manufacturing divisions: BioScience (producing recombinant and blood plasma proteins to treat hemophilia and other bleeding disorders; plasma-based therapies to treat immune deficiencies and other chronic and acute blood-related conditions; products for regenerative medicine; and vaccines); Medication Delivery (producing intravenous solutions and other products used in the delivery of fluids and drugs to patients, as well as inhalation anesthetics and contract manufacturing services); and Renal (providing products to treat end-stage renal disease, or irreversible kidney failure, including solutions and other products for peritoneal dialysis and hemodialysis).
The company was involved in several controversies. In 2001, malfunctioning dialysis machines resulted in several deaths; in 2008 the company supplied contaminated heparin
Heparin
Heparin , also known as unfractionated heparin, a highly sulfated glycosaminoglycan, is widely used as an injectable anticoagulant, and has the highest negative charge density of any known biological molecule...
; in 2009 lethal H5N1 avian flu virus was delivered to laboratories across Europe mixed with seasonal influenza vaccines; also, the company was charged with excessive billing of Kentucky Medicaid
Medicaid
Medicaid is the United States health program for certain people and families with low incomes and resources. It is a means-tested program that is jointly funded by the state and federal governments, and is managed by the states. People served by Medicaid are U.S. citizens or legal permanent...
.
Baxter International is recognized as a leader in environmental controls and commitments.
History
Baxter International was founded in 1931 by Donald Baxter, a medical doctorPhysician
A physician is a health care provider who practices the profession of medicine, which is concerned with promoting, maintaining or restoring human health through the study, diagnosis, and treatment of disease, injury and other physical and mental impairments...
, as a manufacturer and distributor of intravenous therapy
Intravenous therapy
Intravenous therapy or IV therapy is the infusion of liquid substances directly into a vein. The word intravenous simply means "within a vein". Therapies administered intravenously are often called specialty pharmaceuticals...
solutions. Baxter's interest was bought out in 1935 by Ralph Falk, who established a research and development
Research and development
The phrase research and development , according to the Organization for Economic Co-operation and Development, refers to "creative work undertaken on a systematic basis in order to increase the stock of knowledge, including knowledge of man, culture and society, and the use of this stock of...
function. In 1939 the company developed a vacuum-type collection container, extending the shelf life
Shelf life
Shelf life is the length of time that food, drink, medicine, chemicals, and many other perishable items are given before they are considered unsuitable for sale, use, or consumption...
of blood from hours to weeks. In 1953 William Graham became the company's chief executive officer
Chief executive officer
A chief executive officer , managing director , Executive Director for non-profit organizations, or chief executive is the highest-ranking corporate officer or administrator in charge of total management of an organization...
, and in 1954 expanded operations outside of the United States
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...
by opening an office in Belgium
Belgium
Belgium , officially the Kingdom of Belgium, is a federal state in Western Europe. It is a founding member of the European Union and hosts the EU's headquarters, and those of several other major international organisations such as NATO.Belgium is also a member of, or affiliated to, many...
. In 1956 Baxter International introduced the first functioning artificial kidney
Artificial kidney
Artificial kidney is often a synonym for hemodialysis, but may also, more generally, refer to renal replacement therapies that are in use and/or in development...
, and in 1971 became a member of the Fortune 500
Fortune 500
The Fortune 500 is an annual list compiled and published by Fortune magazine that ranks the top 500 U.S. closely held and public corporations as ranked by their gross revenue after adjustments made by Fortune to exclude the impact of excise taxes companies collect. The list includes publicly and...
. Vernon Loucks became president and CEO in 1980; throughout the 1980s and 1990s the company expanded to deliver a wider variety of products and services (including vaccines, a greater variety of blood products) through acquisitions of various companies. Sales and production facilities also expanded throughout the world. In 1993 the company pled guilty to a felony
Felony
A felony is a serious crime in the common law countries. The term originates from English common law where felonies were originally crimes which involved the confiscation of a convicted person's land and goods; other crimes were called misdemeanors...
in relation to an anti-boycott
Boycott
A boycott is an act of voluntarily abstaining from using, buying, or dealing with a person, organization, or country as an expression of protest, usually for political reasons...
law in the United States and in 1996, the company entered into a four-way, $640 million settlement with haemophilia
Haemophilia
Haemophilia is a group of hereditary genetic disorders that impair the body's ability to control blood clotting or coagulation, which is used to stop bleeding when a blood vessel is broken. Haemophilia A is the most common form of the disorder, present in about 1 in 5,000–10,000 male births...
cs 1999 in relation to blood clotting
Coagulation
Coagulation is a complex process by which blood forms clots. It is an important part of hemostasis, the cessation of blood loss from a damaged vessel, wherein a damaged blood vessel wall is covered by a platelet and fibrin-containing clot to stop bleeding and begin repair of the damaged vessel...
concentrates that were infected with HIV
HIV
Human immunodeficiency virus is a lentivirus that causes acquired immunodeficiency syndrome , a condition in humans in which progressive failure of the immune system allows life-threatening opportunistic infections and cancers to thrive...
. Under pressure from shareholders due to poor performance and an unsuccessful merger, Loucks was forced to resign and was replaced by Harry Kraemer, who was replaced by Robert Parkinson in 2004.
Giving Back
In 2010, the Baxter Corporation instated an initiative called the “Baxter Education Advantage” Program. The program aims to offer scholarship grants of up to $15,000 to students with Hemophilia seeking higher education, offers advice on the college search process, and tools to ease the transition both into college and in preparation for the job search. In 2010, 21 students were named University Scholarship Recipients and 11 students were named Technical School Scholarship Recipients. (http://www.myeducationadvantage.com/community/scholarship-recipients.html)Environmental activities
Baxter International is recognized as a leading company in environmental performance and reporting, having an explicit focus on environmental issues since 1976; actions included an environmental policy and manual, a series of audits, regular environmental conferences, efforts to prevent and clean up site contamination and staff dedicated to environmental improvements. In 1997, a report produced by the company indicated that changes made to reduce environmental impacts generated savings that exceeded their cost, producing a net profit. Reporting was company-wide, with a variety of aggregation and reporting, including on the company's internet and intranet sites. The company was an early joiner in the "green and greedy" movement, which aims to lessen the environmental impacts of manufacturing its products while saving the company money. In 2009 the company announced it had reached a variety of its environmentally friendly goals, and that it would continue to try to reduce waste, emissions, energy use and environmental incidents over the coming years.Structure
| Name | Focus | 2009 sales (In billions) | Percentage total sales |
|---|---|---|---|
| BioScience | Vaccine Vaccine A vaccine is a biological preparation that improves immunity to a particular disease. A vaccine typically contains an agent that resembles a disease-causing microorganism, and is often made from weakened or killed forms of the microbe or its toxins... s and biopharmaceutical Biopharmaceutical Biopharmaceuticals are medical drugs produced using biotechnology. They include proteins , nucleic acids and living microorganisms like virus and bacteria where the virulence of viruses and bacteria is reduced by the process of attenuation, they can be used for therapeutic or in vivo diagnostic... s |
$5.6 | 45% |
| Medication Delivery | Intravenous solutions and equipment | $4.65 | 37% |
| Renal | Peritoneal dialysis Peritoneal dialysis Peritoneal dialysis is a treatment for patients with severe chronic kidney disease. The process uses the patient's peritoneum in the abdomen as a membrane across which fluids and dissolved substances are exchanged from the blood... |
$2.3 | 18% |
Sales in 2009 were 42% in the United States, 33% in Europe, 13% in Asia Pacific, 8% in Latin America and 4% in Canada. In 2009, Baxter had approximately 49,700 employees. The breakdown of regional employees in 2009 was 41% in the United States; 30% in Europe; 14% in Asia Pacific; 12% in Latin America; and 2% in Canada. In 2009, Baxter International spent $917 million on research and development.
H1N1 vaccine
In June 2009, Baxter International announced it expected to have the first commercial vaccineVaccine
A vaccine is a biological preparation that improves immunity to a particular disease. A vaccine typically contains an agent that resembles a disease-causing microorganism, and is often made from weakened or killed forms of the microbe or its toxins...
for the H1N1 ("swine flu") influenza as early as July of the same year. The company has been one of several working with the World Health Organization
World Health Organization
The World Health Organization is a specialized agency of the United Nations that acts as a coordinating authority on international public health. Established on 7 April 1948, with headquarters in Geneva, Switzerland, the agency inherited the mandate and resources of its predecessor, the Health...
and United States Centers for Disease Control and Prevention
Centers for Disease Control and Prevention
The Centers for Disease Control and Prevention are a United States federal agency under the Department of Health and Human Services headquartered in Druid Hills, unincorporated DeKalb County, Georgia, in Greater Atlanta...
on the vaccine, and uses a cell
Cell (biology)
The cell is the basic structural and functional unit of all known living organisms. It is the smallest unit of life that is classified as a living thing, and is often called the building block of life. The Alberts text discusses how the "cellular building blocks" move to shape developing embryos....
-based rather than egg
Egg (food)
Eggs are laid by females of many different species, including birds, reptiles, amphibians, and fish, and have probably been eaten by mankind for millennia. Bird and reptile eggs consist of a protective eggshell, albumen , and vitellus , contained within various thin membranes...
-based technology that allows a shorter production time.
2001 dialyzer flaws
On August 15, 2001, two elderly patients in SpainSpain
Spain , officially the Kingdom of Spain languages]] under the European Charter for Regional or Minority Languages. In each of these, Spain's official name is as follows:;;;;;;), is a country and member state of the European Union located in southwestern Europe on the Iberian Peninsula...
died within hours of receiving dialysis
Dialysis
In medicine, dialysis is a process for removing waste and excess water from the blood, and is primarily used to provide an artificial replacement for lost kidney function in people with renal failure...
from Baxter products. Eventually 51 more patients would die; though the cause was unclear, the company issued a worldwide recall of two lines of filters, the sole common link between all the equipment used by the patients. Harry Kraemer, the company president at the time, apologized for the errors, shut down the factory producing filters, alerted competitors of the issue and took a 40% pay cut along with a 20% cut for other executives. The company's earnings dropped by $
United States dollar
The United States dollar , also referred to as the American dollar, is the official currency of the United States of America. It is divided into 100 smaller units called cents or pennies....
189 million as a result of the issues. The company took quick action to reduce the impact of the event and prevent future recurrence and as a result suffered minimal damage to its reputation.
2008 Chinese heparin contamination
In 2008, the quality of blood thinning products produced by Baxter was brought into question when they were linked to 19 deaths in the United States. Upon inspection one of the raw ingredients used by Baxter were found to be contaminated - between 5 and 20 percent - with a substance that was similar, but not identical, to the ingredient itself. The company initiated a voluntary recall, temporarily suspended the manufacture of heparinHeparin
Heparin , also known as unfractionated heparin, a highly sulfated glycosaminoglycan, is widely used as an injectable anticoagulant, and has the highest negative charge density of any known biological molecule...
, and launched an investigation.
Investigation into the contamination has focused on raw heparin produced by Changzhou Scientific Protein Laboratories, a China based branch of Scientific Protein Laboratories, based in Waunakee, Wisconsin
Waunakee, Wisconsin
Waunakee is a village in Dane County, Wisconsin, United States . The population was 12,097 at the 2010 census. It is part of the Madison Metropolitan Statistical Area. Waunakee bills itself as "The Only Waunakee in the World." The village was named as #78 in CNN Money's "Top 100 Best Places to...
. Due to procedural errors Changzhou SPL's facilities was never subject to an inspection by US FDA official, as required by FDA rules. The factory's products were also never certified as safe for use in pharmaceutical products by Chinese FDA officials as Changzhou SPL was itself registered as a chemical company and not a drugs manufacturer. Though Baxter was first to recall heparin because of increased adverse reactions, after the contaminant was identified and testing protocols were shared with other manufacturers globally, over a dozen other companies in nearly a dozen countries issued recalls, which linked back to certain supply points in China.
2009 avian flu contamination
In early 2009, samples of viral material supplied by Baxter International to a series of European laboratories were found to be contaminated with live Avian flu virus (Influenza A virus subtype H5N1). Samples of the less harmful seasonal flu virus (subtype H3N2) were found to be mixed with the deadly H5N1 strain after a vaccine made from the material killed test animals in a lab in the Czech RepublicCzech Republic
The Czech Republic is a landlocked country in Central Europe. The country is bordered by Poland to the northeast, Slovakia to the east, Austria to the south, and Germany to the west and northwest....
. Though the serious consequences were avoided by the lab in the Czech Republic, Baxter claimed the failed controls over the distribution of the virus were 'stringent' and there was 'little chance' of the lethal virus harming humans.
2009 drug cost inflation
On July 2, 2009, KentuckyKentucky
The Commonwealth of Kentucky is a state located in the East Central United States of America. As classified by the United States Census Bureau, Kentucky is a Southern state, more specifically in the East South Central region. Kentucky is one of four U.S. states constituted as a commonwealth...
Attorney General Jack Conway
Jack Conway (politician)
John William “Jack” Conway is an American politician from Kentucky. Conway is a Democrat and has served as the Attorney General of Kentucky since 2008. Prior to his election as attorney general, he was a candidate in the 2002 U.S. House of Representatives election for , narrowly losing to Anne...
announced a settlement between the state and Baxter Healthcare Corporation, a subsidiary of Baxter International, worth $2 million. The company had been inflating the cost of the intravenous drugs
Intravenous therapy
Intravenous therapy or IV therapy is the infusion of liquid substances directly into a vein. The word intravenous simply means "within a vein". Therapies administered intravenously are often called specialty pharmaceuticals...
sold to Kentucky Medicaid, at times as much as 1300%.
2010 hepatitis C infections
In 2010, a jury in Las Vegas, NevadaLas Vegas, Nevada
Las Vegas is the most populous city in the U.S. state of Nevada and is also the county seat of Clark County, Nevada. Las Vegas is an internationally renowned major resort city for gambling, shopping, and fine dining. The city bills itself as The Entertainment Capital of the World, and is famous...
ordered Baxter to pay $144 million to patients who had been infected with Hepatitis C
Hepatitis C
Hepatitis C is an infectious disease primarily affecting the liver, caused by the hepatitis C virus . The infection is often asymptomatic, but chronic infection can lead to scarring of the liver and ultimately to cirrhosis, which is generally apparent after many years...
after doctors wrongly reused dirty medical supplies to administer propofol
Propofol
Propofol is a short-acting, intravenously administered hypnotic agent. Its uses include the induction and maintenance of general anesthesia, sedation for mechanically ventilated adults, and procedural sedation. Propofol is also commonly used in veterinary medicine...
to patients. The jury granted the award, despite the fact that the label for propofol clearly states that it is for single-patient use only and that aseptic procedures should be used at all times.