Baxter International Inc. (BAX) exceeded Wall Street expectations in the third quarter of 2024, driven by strong sales in its core businesses and a resilient supply chain. The company also provided a positive outlook for the remainder of the year, despite the ongoing challenges from Hurricane Helene.
The US is facing a severe shortage of intravenous (IV) fluids, with the recent Hurricane Helene exacerbating a pre-existing crisis. The closure of Baxter International’s North Carolina plant, which produces 60% of the country’s IV fluids, has left hospitals scrambling for essential supplies. The shortage is impacting patient care, forcing hospitals to postpone elective surgeries and causing concern for medical device manufacturers and hospital operators. Despite government intervention, the situation remains precarious, with Baxter projecting only 90% of customer needs to be met by year-end.
Baxter International is ramping up recovery efforts at its North Cove facility, which was severely damaged by Hurricane Helene. Over 1,000 employees have returned to work, and the company expects 3,000 people to be involved in recovery by this week. Baxter is prioritizing deep cleaning and equipment assessment, with the first temporary bridge already enabling the transportation of over 350 truckloads of finished products. The FDA has also approved temporary imports from international facilities to alleviate product shortages.
Medtronic has issued a recall for certain McGrath MAC and MAC EMS Video Laryngoscopes due to a potential battery explosion risk. The recall also includes updated instructions for other models. Separately, Baxter International is recalling certain components for its Volara System due to potential issues with the handset plug disconnecting from the ventilator adapter.
