Baxter International Inc. (BAX) has failed to deliver on its pledge to the U.K. government to supply required quantities of swine flu vaccine, Celvapan. The company has supplied only half of the 400,000 doses of Celvapan it had agreed to supply by the end of Aug 2009.
Britain’s Department of Health allocated Baxter 30 million of the 90 million doses of a $745 million (₤450 million) contract placed in May 2009. The remaining 60 million doses were allocated to GlaxoSmithKline plc (GSK).
Baxter has already received contracts from five governments, including the Governments of Ireland and New Zealand, for 80 million doses of swine flu vaccines. The company has decided not to sign any more contracts since it is already running behind schedule.
The U.K. government is working with Baxter to speed up things and improve the supply of vaccines. The government is not seeking any compensation from Baxter right now.
We think that the delay in the delivery of vaccines will damage the reputation of Baxter as a leading contributor to the welfare of society. Most importantly, it will deprive people who are suffering from this pandemic from the right medicine.
Baxter is a leading global medical products and services company that develops, manufactures and markets products to save the lives of millions of people affected by hemophilia, kidney disease, infectious diseases, etc.
Baxter’s main competitors include Becton, Dickinson and Company (BDX) and Johnson & Johnson (JNJ). Baxter’s products are primarily life-sustaining, a hedge against the current economic turmoil
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