LOS ANGELES--(BUSINESS WIRE)---- $BAX--BAX Investors Have Opportunity to Lead Baxter International Inc. Securities Fraud Lawsuit with the Schall Law Firm. ...

Core Viewpoint - Labaton Keller Sucharow LLP has filed a securities class action lawsuit against Baxter International, Inc. and certain executives, alleging misleading statements regarding the safety and efficacy of the Novum IQ Large Volume Pump, which has been linked to serious patient risks [1][2][4]. Company Overview - Baxter International, Inc. is a global healthcare company that develops and sells medical products for hospitals and healthcare facilities. The company recently launched the Novum IQ Large Volume Pump, which is intended for intravenous fluid delivery [2]. Allegations in the Lawsuit - The lawsuit claims that Baxter and its executives misled investors by failing to disclose systemic defects in the Novum LVP, which caused malfunctions such as underinfusion and overinfusion, posing serious risks to patients [2]. - It is alleged that Baxter was aware of multiple device malfunctions, injuries, and deaths related to the Novum LVP but did not adequately address these issues [2]. - The lawsuit also states that Baxter's communications regarding the safety, efficacy, and sales prospects of the Novum LVP were materially false and misleading [2]. Timeline of Events - Safety concerns regarding the Novum LVP emerged on April 7, 2025, following a whistleblower report about inaccurate infusion issues. Baxter issued warning letters to customers about potential risks shortly thereafter [3]. - On July 31, 2025, Baxter announced a voluntary and temporary pause in shipments and installations of the Novum LVP, leading to a 22.4% drop in the company's stock price [4]. Class Action Details - Individuals who purchased Baxter common stock during the specified class period may seek appointment as Lead Plaintiff in the lawsuit, with a deadline for filing motions set for December 15, 2025 [5].

Core Insights - Artificial intelligence (AI) is identified as the greatest investment opportunity of the current era, with a strong emphasis on the urgent need for energy to support its growth [1][2][3] - A specific company is highlighted as a key player in the AI energy sector, owning critical energy infrastructure assets that are essential for meeting the increasing energy demands of AI technologies [3][7][8] Investment Opportunity - Wall Street is investing heavily in AI, but there is a looming energy crisis as AI technologies require vast amounts of electricity, comparable to the consumption of small cities [2][3] - The company in focus is positioned to benefit from the surge in demand for electricity driven by AI data centers, making it a potentially lucrative investment [3][8] Company Profile - The company is described as a "toll booth" operator in the AI energy boom, collecting fees from energy exports and benefiting from the onshoring trend due to tariffs [5][6] - It possesses significant nuclear energy infrastructure assets, which are crucial for America's future power strategy, and is capable of executing large-scale engineering projects across various energy sectors [7][8] Financial Health - The company is noted for being debt-free and having a substantial cash reserve, amounting to nearly one-third of its market capitalization, which positions it favorably compared to other energy firms burdened with debt [8][10] - It also holds a significant equity stake in another AI-related company, providing indirect exposure to multiple growth opportunities in the AI sector [9][10] Market Sentiment - There is a growing interest from hedge funds in this company, which is considered undervalued and off the radar, trading at less than seven times earnings excluding cash and investments [9][10] - The company is recognized for delivering real cash flows and owning critical infrastructure, making it a compelling investment choice in the context of the AI and energy sectors [11][12]

If you like to see more ideas, please subscribe to the premium service "Value in Corporate Events" here and try the free trial. In this service we cover major earnings events, M&A, IPOs and other significant corporate events with actionable ideas. Furthermore, we provide coverage of situations and names on request!Shares of Baxter International Inc. (NYSE: BAX ) have been seeing fresh flows as the business continues to struggle. In April, I believed that the situation was messy, yet appealing, if only manag ...

Baxter International Inc. (NYSE:BAX) is one of the stocks Jim Cramer recently gave takes on. A caller asked whether they should continue to hold or sell the stock, and Cramer commented: “Oh my god, you know, Baxter, go buy Abbott Labs. I mean, I gotta tell you, Baxter’s been such an incredible disappointment. It’s painful. I don’t know why they continue to disappoint. They are the king of disappointment, and that’s saying something. I’m, you know, the knight of disappointment or the bishop. They’re the ki ...

Company Overview - Baxter International Inc. (BAX) is headquartered in Deerfield, Illinois, and has a market cap of $11.9 billion, focusing on healthcare products related to hemophilia, immune disorders, infectious diseases, kidney disease, trauma, and other medical conditions [1][2] - The company's products are utilized in various healthcare settings, including hospitals, kidney dialysis centers, nursing homes, rehabilitation centers, doctors' offices, and research laboratories [1] Market Position - BAX is classified as a "large-cap stock" due to its market cap exceeding $10 billion, highlighting its size and influence in the medical instruments and supplies industry [2] - The company excels through a diversified portfolio of healthcare products and innovative expansions, with strategic acquisitions enhancing its connected care solutions [2] Stock Performance - BAX shares have decreased by 41.5% from their 52-week high of $40.49, reached on September 17, 2024, and have declined 20.5% over the past three months, underperforming the Dow Jones Industrials Average, which gained 9.4% in the same period [3] - Year-to-date, BAX shares are down 18.8%, and over the past 52 weeks, they have fallen 39.8%, significantly lagging behind the Dow Jones Industrials Average's YTD gains of 8.5% and 11.2% returns [4] Financial Performance - In Q2, BAX reported an adjusted EPS increase of 28.3% year-over-year to $0.59, with revenue of $2.8 billion, reflecting a 4.3% increase from the previous year [5] - The company's weak stock performance is attributed to ongoing operational challenges and cautious hospital expenditure, leading to a significant drop in share price following the Q2 results [5]

Core Insights - Baxter International Inc. has launched the Welch Allyn Connex 360 Vital Signs Monitor, which has received FDA's 510(k) clearance and is now available for order in the U.S. [2][11] - The launch is expected to enhance Baxter's Front Line Care unit within the Healthcare Systems & Technologies segment and strengthen its position in the connected patient monitoring market [3][10]. Product Details - The Connex 360 monitor features advanced connectivity, customizable configurations, and automated clinical documentation to streamline clinician workflows [6][7]. - It captures vital signs for adult, pediatric, and neonate patients, including blood pressure, temperature, pulse rate, respiration rate, and blood oxygen levels, enabling care teams to obtain a full set of patient vitals in under a minute [7][8]. Market Context - The global patient monitoring devices market was valued at $50.36 billion in 2024 and is projected to reach $118.21 billion by 2033, growing at a CAGR of approximately 10.2% [9]. - The increasing demand for monitoring devices and the need for continuous monitoring are key factors driving market growth [9]. Financial Performance - Baxter currently has a market capitalization of $11.92 billion and an earnings yield of 10.6%, significantly higher than the industry average of 0.2% [5]. - Despite the positive outlook from the product launch, Baxter's shares have declined nearly 2.5% following the announcement and have lost 40.2% over the past year [4][13].

Core Viewpoint - Baxter International's stock has declined by 14% over the past month due to a disappointing earnings report and reduced full-year guidance, raising questions about its current valuation at approximately $25 [2] Financial Performance - Baxter's revenues have contracted at an average of 5.7% over the last three years, while the S&P 500 has seen a growth of 5.3% [6] - In the last 12 months, revenues rose by 3.6% to $11 billion, compared to a 5.2% increase for the S&P 500 [6] - Quarterly revenues grew by 4.3% to $2.8 billion from $2.7 billion a year earlier, while the S&P 500 experienced a 6.1% growth [6] Profitability Metrics - Baxter's operating income for the last four quarters was $398 million, resulting in a poor operating margin of 3.7%, significantly lower than the S&P 500's 18.8% [5] - The company's operating cash flow totaled $765 million, yielding a low cash flow margin of 7.0% compared to 20.2% for the S&P 500 [12] - Baxter reported a net income of -$155 million, translating into a negative net margin of -1.4%, while the S&P 500 had a net margin of 12.8% [12] Valuation Analysis - Baxter's price-to-sales (P/S) ratio is 1.2, which is significantly lower than the S&P 500's ratio of 3.3, indicating that Baxter stock appears inexpensive relative to the broader market [3] - The stock is currently valued at 1.3 times trailing revenue, well below its five-year average of 2.6 times, suggesting that the market has already factored in its performance challenges [9] Financial Stability - Baxter's balance sheet is described as adequate, with total debt standing at $9.7 billion against a market cap of $13 billion, resulting in a moderate debt-to-equity ratio of 77.2% compared to the S&P 500's 20.2% [12] - Cash and equivalents amount to $1.7 billion out of total assets of $21 billion, yielding a cash-to-assets ratio of 8.0%, which is slightly above the S&P 500's 7.0% [12] Downturn Resilience - Baxter's stock has performed slightly better than the S&P 500 during some recent downturns, indicating moderate resilience [8] - The stock has experienced significant declines in the past, including a 64.6% drop from $89.45 in February 2022 to $31.71 in October 2023, compared to a 25.4% drop for the S&P 500 [12]

Core Viewpoint - Baxter International Inc. reported a total revenue of $2.81 billion for Q2 2025, reflecting a year-over-year growth of 4.3%, with operational growth of 1% after adjusting for unfavorable exchange rates and structural changes [1][2][4]. Financial Performance - The company achieved a GAAP net profit of $91 million, reversing the net loss from the same period last year, with diluted EPS at $0.24 and adjusted EPS at $0.54, marking a 28% year-over-year increase [1][2][3]. - Gross margin decreased to 35.3%, down 300 basis points year-over-year, while adjusted gross margin was 40.7%, down 170 basis points [2]. - Operating margin improved to 6.8%, up 20 basis points year-over-year, with adjusted operating margin at 15.1%, up 180 basis points [2]. Business Segment Performance - Medical Products & Therapies (MPT) segment revenue was stable at $1.32 billion, with recovery in production capacity but demand recovery lagging [5]. - The Healthcare Systems & Technologies (TSS) segment reported revenue of $767 million, a 3% increase year-over-year, driven by strong sales of the Novum IQ infusion platform [6]. - Pharmaceuticals segment revenue reached $615 million, a 1% increase, supported by new products despite pressure from the anesthetics market [7]. Guidance and Outlook - The company adjusted its full-year sales growth forecast from 7%-8% to 6%-7%, with adjusted diluted EPS guidance lowered to $2.42 - $2.52 [8][14]. - Management indicated that the downward adjustment reflects short-term inventory factors and does not alter the long-term business structure optimization trend [9]. Strategic Developments - Baxter completed the divestiture of its kidney business, Vantive, generating approximately $3 billion in cash flow, which strengthens its balance sheet [10]. - Andrew Hider will take over as CEO on September 3, 2025, succeeding interim CEO Brent Shafer, marking a new phase in the company's organizational transformation [10][11]. - The company is focusing on digital integration, global supply chain restructuring, and commercialization of next-generation products [12][13].

[PART I. FINANCIAL INFORMATION](index=4&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) This section presents the company's financial statements, management's analysis, market risk disclosures, and internal controls [Financial Statements (unaudited)](index=4&type=section&id=Item%201.%20Financial%20Statements%20(unaudited)) This section presents Baxter International Inc.'s unaudited condensed consolidated financial statements, reflecting the Kidney Care business sale and debt repayments [Condensed Consolidated Financial Statements](index=4&type=section&id=Condensed%20Consolidated%20Financial%20Statements) The consolidated financial statements reflect significant changes from the Kidney Care divestiture, showing decreased assets and liabilities, and a shift to net income Condensed Consolidated Balance Sheet Highlights (in millions) | Account | June 30, 2025 | December 31, 2024 | Change | | :--- | :--- | :--- | :--- | | Total current assets | $6,749 | $8,853 | ($2,104) | | Total assets | $21,046 | $25,782 | ($4,736) | | Short-term debt | $6 | $2,126 | ($2,120) | | Total current liabilities | $2,939 | $6,511 | ($3,572) | | Total liabilities | $13,753 | $18,758 | ($5,005) | | Total equity | $7,293 | $7,024 | $269 | Condensed Consolidated Statement of Income Highlights (in millions) | Account | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | Net sales | $5,435 | $5,184 | | Gross margin | $1,852 | $1,992 | | Operating income | $249 | $294 | | Income from continuing operations | $186 | $101 | | Income (loss) from discontinued operations, net of tax | $31 | $(373) | | Net income (loss) attributable to Baxter | $217 | $(277) | Condensed Consolidated Statement of Cash Flows Highlights (in millions) | Account | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | Cash flows from operations | $24 | $278 | | Cash flows from investing activities | $3,150 | $(257) | | Cash flows from financing activities | $(3,988) | $(1,076) | [Notes to Condensed Consolidated Financial Statements](index=11&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) These notes detail major corporate actions, including the Kidney Care business sale, Hurricane Helene charges, debt repayments, and the Novum LVP recall - Completed the sale of the Kidney Care business to Carlyle on January 31, 2025, for **~$3.71 billion** in pre-tax cash proceeds, recognizing a pre-tax gain of **$191 million** The business is now reported as discontinued operations[21](index=21&type=chunk)[24](index=24&type=chunk) - In H1 2025, recorded **$115 million** in pre-tax net charges for remediation, air freight, and other costs resulting from damage caused by Hurricane Helene to the North Cove, NC facility[22](index=22&type=chunk) - In H1 2025, used proceeds from the Kidney Care sale to repay approximately **$3.81 billion** in debt, including a **$1.83 billion** bridge facility, **$1.0 billion** of a term loan, and **$680 million** of senior notes[49](index=49&type=chunk)[45](index=45&type=chunk)[50](index=50&type=chunk) - Initiated a voluntary correction for the Novum IQ Large Volume Pump (LVP), which the FDA classified as a **Class I recall** Distribution in the U.S. and Canada was temporarily halted[55](index=55&type=chunk) Segment Net Sales - Six Months Ended June 30 (in millions) | Segment | 2025 | 2024 | | :--- | :--- | :--- | | Medical Products & Therapies | $2,582 | $2,551 | | Healthcare Systems & Technologies | $1,471 | $1,415 | | Pharmaceuticals | $1,193 | $1,180 | | **Total Baxter** | **$5,435** | **$5,184** | [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=39&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses strategic actions, including the Kidney Care sale and debt reduction, alongside operational results, liquidity, and key challenges [Overview and Strategic Actions](index=39&type=section&id=Overview%20and%20Strategic%20Actions) The company completed its Kidney Care business sale for **~$3.3 billion** net after-tax proceeds, primarily used for **$3.81 billion** debt repayment, and is now restructuring costs - Completed the sale of the Kidney Care business on January 31, 2025, receiving approximately **$3.3 billion** in net after-tax proceeds[162](index=162&type=chunk) - As of June 30, 2025, the company had repaid **$3.81 billion** of debt, primarily using the proceeds from the Kidney Care sale[162](index=162&type=chunk) - The company is undertaking restructuring actions to manage dis-synergies and align its cost structure with the remaining business after the Kidney Care sale[164](index=164&type=chunk) [Results of Operations](index=42&type=section&id=Results%20of%20Operations) H1 2025 consolidated net sales increased **5%** to **$5.4 billion**, driven by Healthcare Systems & Technologies and Pharmaceuticals, though gross margin declined Net Sales Growth by Geography - Six Months Ended June 30, 2025 | Region | At Actual Rates | At Operational Sales Growth | | :--- | :--- | :--- | | United States | 7% | 3% | | Emerging markets | (2)% | 3% | | Rest of world | 5% | 3% | | **Total net sales** | **5%** | **3%** | - Medical Products & Therapies sales were up **1%** in H1 2025, with growth in Advanced Surgery offset by challenges in Infusion Therapies due to Hurricane Helene's after-effects and the exit from IV solutions in China[187](index=187&type=chunk)[188](index=188&type=chunk)[189](index=189&type=chunk) - Healthcare Systems & Technologies sales grew **4%** in H1 2025, driven by a **6%** increase in Care & Connectivity Solutions from higher U.S. capital spending[193](index=193&type=chunk)[194](index=194&type=chunk) - Pharmaceuticals sales increased **1%** in H1 2025, with Drug Compounding growth of **3%** offsetting flat performance in Injectables & Anesthesia[198](index=198&type=chunk)[199](index=199&type=chunk)[200](index=200&type=chunk) - Gross margin ratio for H1 2025 was **34.1%**, a decrease from **38.4%** in H1 2024 Excluding special items, the margin declined by **1.6 percentage points**, primarily due to the Kidney Care MSA and manufacturing variances[206](index=206&type=chunk)[207](index=207&type=chunk) [Liquidity and Capital Resources](index=53&type=section&id=Liquidity%20and%20Capital%20Resources) The Kidney Care divestiture significantly strengthened liquidity, with **$3.15 billion** net inflow from investing activities used for **$3.99 billion** debt repayment - Cash flows from continuing operations were **$118 million** for H1 2025, compared to **$30 million** for H1 2024[238](index=238&type=chunk) - In H1 2025, cash used in financing activities was **$3.99 billion**, which included debt repayments of **$3.51 billion** and commercial paper repayments of **$300 million**[240](index=240&type=chunk) - In June 2025, the company entered into an amended and restated **$2.20 billion** multicurrency revolving credit facility maturing in 2030 and an amended term loan facility with **$645 million** outstanding maturing in 2027[243](index=243&type=chunk)[244](index=244&type=chunk) - No shares were repurchased in H1 2025 The company has **$1.30 billion** remaining available under its share repurchase authorization as of June 30, 2025[241](index=241&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=59&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company manages foreign currency and interest rate risks using derivatives, with a hypothetical **10%** U.S. dollar weakening having an immaterial impact - The company's primary foreign exchange risk is from operations denominated in the Euro, British Pound, Canadian Dollar, Australian Dollar, and other major currencies[263](index=263&type=chunk) - A sensitivity analysis showed that a **10%** adverse move in the U.S. Dollar against all currencies would result in a change of less than **$1 million** to the net pre-tax asset balance of its foreign exchange contracts[266](index=266&type=chunk) - The company continues to apply highly inflationary accounting for its subsidiary in Turkey, which had net monetary assets of **$30 million** as of June 30, 2025[268](index=268&type=chunk) [Controls and Procedures](index=60&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of June 30, 2025, with no material changes to internal controls - Management, including the Interim CEO and CFO, concluded that disclosure controls and procedures were effective as of June 30, 2025[271](index=271&type=chunk) - No material changes to internal control over financial reporting were identified during the second quarter of 2025[272](index=272&type=chunk) [PART II. OTHER INFORMATION](index=61&type=section&id=PART%20II.%20OTHER%20INFORMATION) This section provides details on legal proceedings, risk factors, equity sales, other corporate information, and filed exhibits [Legal Proceedings](index=61&type=section&id=Item%201.%20Legal%20Proceedings) This section incorporates by reference detailed discussions of legal contingencies from Note 6 of the financial statements - Information on legal proceedings is incorporated by reference from Note 6 of the financial statements[274](index=274&type=chunk) [Risk Factors](index=61&type=section&id=Item%201A.%20Risk%20Factors) The company reports no material changes to the risk factors previously disclosed in its 2024 Annual Report on Form 10-K - There have been no material changes to the risk factors previously disclosed in the 2024 Annual Report[275](index=275&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=61&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) During Q2 2025, Baxter did not repurchase any common stock, with **$1.30 billion** remaining under its share repurchase authorization - No shares were repurchased during the second quarter of 2025[275](index=275&type=chunk) - As of June 30, 2025, **$1.30 billion** remained available under the company's share repurchase program[275](index=275&type=chunk) [Other Information](index=61&type=section&id=Item%205.%20Other%20Information) This section discloses an amended compensation agreement for Interim CEO Brent Shafer and notes officer/director participation in non-Rule 10b5-1 trading arrangements - On August 2, 2025, the company amended the compensation agreement with Interim CEO/Chair Brent Shafer, modifying his bonus eligibility and outlining his transition to non-executive Chair[276](index=276&type=chunk)[277](index=277&type=chunk)[278](index=278&type=chunk) - Certain officers and directors participate in trading arrangements, such as for tax withholding on equity awards, which may constitute non-Rule 10b5-1 plans[280](index=280&type=chunk) [Exhibits](index=62&type=section&id=Item%206.%20Exhibits) This section provides an index of all exhibits filed with the Form 10-Q, including amended credit agreements and CEO/CFO certifications - Lists exhibits filed with the report, including amended credit facilities, executive compensation agreements, and required CEO/CFO certifications[281](index=281&type=chunk)