High Demand Caused by COVID-19 Helps Baxter Beat 1Q20 Expectations

Baxter International is experiencing significant revenue growth because of the novel coronavirus (COVID-19). Because of the virus’s impact, the Deerfield, IL-based company beat Wall Street expectations for its 1Q20 earnings. Baxter reported results of $2.8 billion, a 6% increase from the $2.6 billion reported in 1Q19. The results beat out consensus, which came in at about $2.7 billion. Higher demand for Baxter’s continuous renal placement therapy line, generic injectables and parenteral nutrition therapies, and intravenous solutions contributed to sales growth. Executives estimated that the COVID-19 related demand, which accelerated during the last two weeks of 1Q20 contributed to about $45 million in sales. However, there were still some weak points in the company’s armor. “As expected, given the slowdown in elective surgeries, demand for our Advanced Surgery portfolio declined and is expected to continue to decline throughout the second quarter,” Baxter’s CEO Joe Almeida said during an earnings call, according to a transcript from Seeking Alpha. Danielle Antalffy, an analyst with SVB Leerink Research, said that the Advanced Surgery Portfolio is a relatively small business at less than 10% of the total Baxter sales in 2019. She noted that losses from the Advanced Surgery Portfolio would be offset by Baxter's other high-performing uni...
Source: MDDI - Category: Medical Devices Authors: Tags: COVID-19 Business Source Type: news