Baxter International

Baxter International Inc.

Company type	Public
Industry	Healthcare
Founded	January 1, 1931 (1931-01-01) in Los Angeles, United States
Founder	Dr. Donald Baxter
Headquarters	Deerfield, Illinois , United States
Area served	Worldwide
Key people	José E. Almeida (Chairman and CEO)
Products	Medical products and therapies, healthcare systems and technologies, pharmaceuticals
Number of employees	48,000 (2016)
Website	www.baxter.com

Baxter International Inc. is a U.S.-based multinational enterprise specializing in healthcare, with its main headquarters located in Deerfield, Illinois.

The organization concentrates on developing products aimed at managing both chronic and acute health conditions. In 2023, Baxter achieved $14.8 billion in worldwide net sales, marking a 2% rise compared to 2022. Its operations are divided into three primary segments: Medical Products and Therapies, Healthcare Systems and Technologies, and Pharmaceuticals.

Within the Medical Products and Therapies segment, two divisions operate: "Advanced Surgery," which focuses on creating technologies to improve surgical procedures and results, and "Infusion Therapies and Technologies," responsible for manufacturing intravenous solutions used for fluid and medication administration.

The Healthcare Systems and Technologies segment comprises four divisions: "Front Line Care," "Digital Platform and Innovations," "Care and Connectivity Solutions," and "Global Services."

Baxter’s Pharmaceuticals segment produces inhaled anesthetics along with specialized hospital medications targeting pain management, critical care, anti-infection treatments, and oncology.

History

Founded in 1931 by Dr. Donald Baxter in Los Angeles, Baxter International began as a producer and distributor of intravenous therapy products. To better serve the Midwest region, the company established a manufacturing facility in Glenview, Illinois, in 1933. Two years later, in 1935, Ralph Falk acquired the business and initiated its research and development efforts. By 1939, Baxter had innovated a vacuum-based blood collection container that extended the viability of blood from mere hours to several weeks. The company expanded internationally by opening an office in Belgium in 1954. In 1956, Baxter launched the first operational artificial kidney device and entered the Fortune 500 list by 1971.

In 1971, Baxter constructed a large-scale manufacturing plant in Ashdod, Israel; this development resulted in the company being placed on the Arab League boycott list during the early 1980s. Throughout the 1980s and 1990s, Baxter significantly diversified its product and service offerings—including vaccines and blood products—through numerous acquisitions and international growth.

Baxter acquired Medcom, Inc., a New York-based firm with substantial markets in the U.S. and Saudi Arabia, in 1982. Controversy arose when Baxter sold its Ashdod plant to Teva Pharmaceutical Industries while negotiating for a new facility in Syria to be removed from the Arab League blacklist. In 1993, Baxter pleaded guilty to a felony violation concerning U.S. anti-boycott regulations.

A pivotal merger took place in 1985 when Baxter merged with American Hospital Supply Corporation, combining two leading U.S. medical supply manufacturers into an entity supplying between 70% and 80% of hospital requirements.

During the early 1990s, Baxter’s home infusion branch Caremark International became involved in a federal kickback scandal; this led to Caremark’s spin-off in 1992 and a subsequent $160 million fine.

In 1996, Baxter resolved a $640 million lawsuit linked to HIV-contaminated blood clotting products. Due to shareholder dissatisfaction stemming from underperformance and unsuccessful mergers, CEO Vernon Loucks stepped down.

Baxter pursued further strategic acquisitions including the medical device company Baxa in 2011 and Claris Lifesciences’ injectable drug subsidiary for $625 million in 2016. Additionally, Hikma Pharmaceuticals purchased Baxter’s U.S. generic injectables business in 2011.

In July 2013, European Union authorities approved Baxter’s $4 billion purchase of Sweden-based Gambro. By March 2014, Baxter announced plans to split into two separate global healthcare entities: one concentrating on biopharmaceuticals (named Baxalta) and another retaining the Baxter name focusing on medical products; Baxalta was publicly spun off in July 2015.

Baxter exited the vaccines sector in 2014 by selling its commercial vaccine portfolio to Pfizer while exploring alternative vaccine research opportunities.

José E. Almeida was named chairman and CEO in October 2015. Shortly after, in January 2016, Shire PLC agreed to acquire Baxalta for $32 billion.

In December 2019, Baxter expanded its advanced surgery offerings by acquiring Seprafilm from Sanofi for $350 million.

September 2021 saw Baxter announce a $12.4 billion all-cash acquisition of Hillrom, finalized by December that year.

In May 2023, Baxter divested its biopharma solutions division—which provides injectable delivery systems and regulatory support services—to private equity firms Warburg Pincus and Advent International for $4.25 billion.

By August 2024, Baxter agreed to sell its kidney care unit Vantive to Carlyle Group for $3.8 billion.

In September 2024, flooding caused by Hurricane Helene impacted Baxter’s Marion facility in North Carolina—responsible for approximately 60% of intravenous fluid production across the U.S.—resulting in nationwide shortages of IV fluids that forced hospitals to ration supplies. Partial production resumed by November amid ongoing conservation measures during flu season.

Environmental initiatives

Back in 1997, the company disclosed that the cost savings from environmental enhancements surpassed their expenditures, resulting in a positive net gain. These reports were shared throughout the entire organization, featuring updates on both its internet and intranet platforms. As an early adopter of the "green and greedy" philosophy—which focuses on minimizing environmental impacts of manufacturing while cutting costs—the company demonstrated leadership in sustainable practices. By 2009, it announced measurable advancements toward its environmental objectives and pledged to intensify efforts to lower waste production, emissions, energy consumption, and incident occurrences.

Organizational structure

Baxter International by business segment

Division	Core activities	2013 revenue (billions)	Share of total revenue
BioScience	Treatments for haemophilia; antibody therapies; critical care; pulmonology; biosurgical products; vaccines	$6.4	43%
Medical Products	Intravenous solutions, premixed medications, infusion pumps; parenteral nutrition; anesthesia; pharmaceutical formulation and partnerships; peritoneal dialysis; hemodialysis; continuous renal replacement therapy	$10.3	57%

In 2014, Baxter reported total revenues of $16.7 billion divided between two main segments: BioScience ($6.6 billion) and Medical Products ($8.7 billion). The 2013 sales breakdown by geography was 42% from the United States, 30% from Europe, 16% from Asia Pacific, and 12% from Latin America and Canada. Around 61,500 employees were on staff in 2011, with regional workforce distribution in 2013 being 36% in the U.S., 34% in Europe, 16% in Asia Pacific, and 14% in Latin America and Canada. That year, Baxter allocated over $1.2 billion towards research and development initiatives. By the close of 2016, the number of employees had reduced to roughly 48,000.

Leadership and governance

William Graham assumed the role of CEO in 1953. Vernon Loucks followed as president and CEO starting in 1980 but was eventually compelled to step down due to shareholder pressure. Throughout Loucks' leadership (CEO from 1980 to 1998 and chairman from 1987 to 1999), Baxter’s sales expanded more than fourfold to $5.7 billion, while its employee base increased from 30,000 to 42,000. Loucks also established a strong leadership succession plan, mentoring future executives such as Terry Mulligan (MedAssets), Lance Piccolo (Caremark), and Mike Mussallem (Edwards Lifesciences). His successors included Harry Kraemer and later Robert Parkinson beginning in 2004.

H1N1 vaccine development

In July of 2009, Baxter finalized production of the first commercially available vaccine targeting the H1N1 influenza virus ("swine flu"). The company partnered with the World Health Organization and the U.S. Centers for Disease Control and Prevention, employing cell-based technology that allows quicker manufacturing compared to conventional egg-based vaccine production methods.

Community engagement

In 2008, Baxter initiated Science@Work: Expanding Minds with Real-World Science, a program designed to enhance teacher training and student learning in healthcare and biotechnology within Chicago Public Schools.

By 2013, Baxter earned recognition on The Civic 50 list for its dedication to community-focused efforts. In 2014 alone, about 6,300 employees participated as volunteers via The Baxter International Foundation’s Dollars for Doers initiative, supporting projects related to healthcare, environmental sustainability, and education. That year also saw Baxter and its foundation contribute over $50 million toward community programs.

Baxter secured its thirteenth consecutive placement on Corporate Responsibility magazine’s list of the 100 Best Corporate Citizens in 2014, highlighting its ongoing dedication to corporate social responsibility.

Product defects and contamination

In August 1975, Baxter/Travenol withdrew its clotting agent Hemofil following its association with a hepatitis B outbreak. Although the FDA agreed in 1982 to halt the use of plasma sourced from US prisons due to viral transmission risks, Baxter persisted in utilizing this plasma until October 1983.

In 1996, Baxter resolved litigation involving 200 Japanese haemophilia patients who contracted HIV through unheated contaminated blood products. The courts mandated compensation payments amounting to $411,460 per affected individual.

A 2010 jury in Las Vegas awarded $144 million against Baxter and Teva Pharmaceuticals for hepatitis C infections linked to improper reuse of propofol administration equipment. According to a 2009 indemnity contract, responsibility for the legal claims and settlements was assumed by Teva.

Also in 2010, the FDA ordered a recall of Baxter’s Colleague infusion pumps after 87 recalls and multiple deaths were connected to the device.

2001 Althane disaster

The 2001 Althane incident involved sudden fatalities exceeding fifty among kidney failure patients treated with Baxter International’s Althane hemodialysis machines across Spain, Croatia, Italy, Germany, Taiwan, Colombia, and the United States. This event raised serious questions regarding the safety of Baxter’s medical devices and regulatory supervision.

2008 Chinese heparin adulteration

In 2008, Baxter confronted a significant crisis when its heparin blood-thinning products were linked to 81 fatalities and 785 severe allergic reactions in the United States. This led to a voluntary product recall and a temporary halt in heparin manufacturing. The contamination was traced back to raw heparin supplied by Changzhou Scientific Protein Laboratories, a Chinese division of Scientific Protein Laboratories (Wisconsin), which had not undergone FDA inspection or pharmaceutical certification.

The contaminant was identified as an "over-sulfated" chondroitin sulfate derivative—an inexpensive counterfeit designed to mimic heparin’s effects—suggesting deliberate adulteration likely motivated by cost-saving measures amid raw material shortages in China. Baxter coordinated with the FDA to recall all impacted heparin batches. This incident exposed weaknesses in Baxter’s international supply chain and emphasized the critical need for rigorous quality assurance in pharmaceutical production.

2009 Avian flu contamination

At the start of 2009, Baxter International distributed viral samples to European laboratories that were contaminated with live Avian influenza virus (Influenza A subtype H5N1). Seasonal flu virus samples (H3N2) were inadvertently mixed with the highly pathogenic H5N1 strain, causing death of laboratory animals in the Czech Republic. While severe outcomes were avoided, Baxter admitted to lapses in distribution controls but asserted that human risk remained minimal.

2009 drug cost inflation

On July 2, 2009, Kentucky Attorney General Jack Conway announced a $2 million settlement with Baxter Healthcare Corporation, a subsidiary of Baxter International. The company was found guilty of inflating prices for intravenous drugs sold to Kentucky Medicaid by as much as 1300%.