To mark World Hemophilia Day, Baxter International (BAX) recently reiterated its determination to maintain the standard of care and ensure adequate access to treatment for victims of hemophilia and other bleeding disorders. The company is extending its hand to the World Federation of Hemophilia (“WFH”) to start Advocacy in Action, a creative, multi-year project to assist nations play an advocacy role for victims of bleeding disorders.
Baxter is funding this initiative with a grant. Furthermore, Advocacy in Action’s role is intertwined with the WFH theme for World Hemophilia Day, which is “Be Inspired, Get Involved in Treatment for All”. Since its inception, in honor of Frank Schnabel in 1989, World Hemophilia Day (observed on April 17) has played a key role in heightening awareness of hemophilia and various bleeding problems.
The overall longevity of hemophilia victims, in certain areas of the developed world, has crossed 60 years. Despite progress, wide disparities remain as 3 out of 4 victims do not receive proper medical care.
According to WFH, its purpose is to make sure that all victims are diagnosed and receive treatment for their condition. For its part, Advocacy in Action is geared to accomplish this mission, which will lead to favorable results across the globe.
Advocacy in Action is empowered to bolster WFH’s national member organizations’ (“NMOs”) capability to lobby their governments on behalf of those suffering from bleeding disorders. The effort includes specially crafted advocacy support, such as workshops, coaching programs and staffing to help implement public policy.
Besides the new advocacy initiative, Baxter continues to support WFH’s Global Alliance for Progress (“GAP”) program as its founder cum leading sponsor. Since its inception in 2003, over 22,000 victims have been diagnosed with bleeding problems in 16 nations and over 13,000 health care experts and regulators trained on the subject. Baxter has also reached out to hemophilia patients living in underserved nations.
Baxter remains at the forefront of R&D efforts to treat hemophilia A and B and von Willebrand disease (a bleeding disorder afflicting both genders). Many preclinical, clinical and post-marketing trials are under progress to evaluate approaches for managing hemophilia.
Overall, the news regarding Baxter remains mixed, at the Street. On the positive side, Baxter’s focus on life-sustaining products, which are not commoditized, partly insulates it from an economic downturn. The company is able to generate recurring revenues, and consistent cash flow, due to its focus on chronic diseases.
On the flip side, despite recent improvement in Plasma Proteins and Antibody Therapy sub-segments, we are concerned about stagnation in sales, a somewhat difficult outlook for hospital spending and tightening of reimbursement.
The lingering bearishness surrounding the stock can be lifted by consistent execution. Baxter is a good bet for value investors willing to wait as fundamentals improve. Among others, it competes with Becton, Dickinson and Company (BDX) and Talecris Biotherapeutics Holdings Corp. (TLCR) in certain niches. We currently have a long-term Neutral rating on Baxter.
BAXTER INTL (BAX): Free Stock Analysis Report
BECTON DICKINSO (BDX): Free Stock Analysis Report
TALECRIS BIOTHR (TLCR): Free Stock Analysis Report
Zacks Investment Research
