Baxter profit rises 7 percent in 4Q
BY FRANCINE KNOWLES Business Reporter firstname.lastname@example.org January 24, 2013 9:40AM
Updated: January 24, 2013 11:18AM
Deerfield-based health care products maker Baxter International Inc. reported a 7 percent increase in fourth quarter net income from a year earlier Thursday amid strong sales of its hemophilia drug Advate.
The world’s biggest maker of blood disease treatments said it earned $494 million, or 89 cents per share, up from $463 million, or 82 cents per share.
Excluding special items, including costs associated with settlement of certain U.S. pension obligations, Baxter said it earned $700 million or $1.26 per share.
Net sales rose 4 percent to $3.8 billion, up from $3.6 billion.
BioScience sales rose 7 percent to $1.7 billion, and Medical Products sales rose 2 percent to $2.1 billion.
Baxter forecast first quarter 2013 sales growth of 2 percent to 3 percent, excluding the impact of foreign exchange. It forecast earnings of $1.03 per share to $1.05 per share.
For full-year 2013, Baxter said it expects sales growth of 10 percent, excluding the impact of foreign exchange. It forecast earnings of $4.60 per share to $4.70 per share. The guidance includes the impact of its acquisition of Sweden-based dialysis products maker Gambro AB, which is projected to close at the end of the second quarter.
Baxter announced in December it will pay $4 billion to acquire Gambro , whose products and technologies are used in hemodialysis, or dialysis that is performed in a hospital or clinic setting. It was Baxter’s biggest acquisition in two decades.
Baxter also announced Thursday it has agreed to acquire the investigational hemophilia compound OB1-1 from Inspiration BioPharmaceuticals Inc. and certain other related assets, including manufacturing operations, from Ipsen Pharma S.A.S. in conjunction with Inspiration’s ongoing bankruptcy proceedings. The transaction is subject to bankruptcy court and regulatory approvals.
Under other terms of the agreement, Baxter said it will make an upfront payment of $50 million for the OB1-1 assets. Baxter said it may make payments of up to $20 million based on regulatory approval of the acquired hemophilia treatment indication in the United States and the first additional country. Additional payments may be made if certain conditions are met, including approval of additional treatment indications, Baxter said.