Baxter International Inc. (BAX) recently received another order for 10,000 H1N1 vaccines, commonly known as “swine flu,” from Slovenia. The order is worth $158,700 (105,000 euros). It is estimated that the number of vaccines ordered is sufficient to cover 5,000 people in the country.
Slovenia has also decided to purchase a total of 1.3 million units of H1N1 vaccines from the British arm of GlaxoSmithKline plc (GSK) and the Swiss arm of Novartis AG (NVS) by the end of Jan. 2010. This would cost Slovenia roughly 14 million euros.
The new order will help Baxter boost its top-line. Baxter sees a multiyear opportunity in H1N1 vaccines. The company expects to recognize $30 million to $40 million in revenues from H1N1 vaccines in the fourth quarter of 2009. Baxter has not speculated on H1N1 vaccine sales beyond the fourth quarter. However, increasing demand has raised hopes for a multiyear opportunity. Baxter started shipping the product from Aug. 2009.
Baxter and four other companies Sanofi-Aventis (SNY); MedImmune, a subsidiary of AstraZeneca plc (AZN); GlaxoSmithKlineand Novartis AG (NVS) have received authorization to market H1N1 vaccines.
Baxter has received approval only for a two-dose vaccine and not single-dose. The company uses its cell culture-based technology instead of the traditional one to produce these vaccines.
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 Co. (BDX) and Johnson & Johnson (JNJ). Baxter’s products are primarily life-sustaining, a hedge against the current economic turmoil.
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