Baxter International Inc. is an American health care company with headquarters in Deerfield, Illinois.The company primarily focuses on products to treat hemophilia, kidney disease, immune disorders and other chronic and acute medical conditions. The company had 2011 sales of $13.9 billion, across two businesses: BioScience and Medical Products (in October 2010, the company combined its Medication Delivery and Renal business into a single global business unit, Medical Products). Baxter’s BioScience business produces recombinant and blood plasma proteins to treat hemophilia and other bleeding disorders; plasma-based therapies to treat immune deficiencies and other chronic and acute blood-related conditions; products for regenerative medicine; and vaccines. Baxter’s Medical Products business produces intravenous solutions and other products used in the delivery of fluids and drugs to patients; inhalation anesthetics; contract manufacturing services; and products to treat end-stage renal disease, or irreversible kidney failure, including solutions and other products for peritoneal dialysis and hemodialysis.
 

History

Baxter International was founded in 1931 by Donald Baxter, a medical doctor, as a manufacturer and distributor of intravenous therapy solutions. Baxter's interest was bought out in 1935 by Ralph Falk, who established a research and development function. In 1939 the company developed a vacuum-type collection container, extending the shelf life of blood from hours to weeks.

In 1953 William Graham became the company's chief executive officer, and in 1954 expanded operations outside of the United States by opening an office in Belgium. In 1956 Baxter International introduced the first functioning artificial kidney, and in 1971 became a member of the Fortune 500. Vernon Loucks became president and CEO in 1980; throughout the 1980s and 1990s the company expanded to deliver a wider variety of products and services (including vaccines, a greater variety of blood products) through acquisitions of various companies.

Sales and production facilities also expanded throughout the world. In 1993 the company pled guilty to a felony in relation to an anti-boycott law in the United States and in 1996, the company entered into a four-way, $640 million settlement with haemophiliacs 1999 in relation to blood clotting concentrates that were infected with HIV. Under pressure from shareholders due to poor performance and an unsuccessful merger, Loucks was forced to resign and was replaced by Harry Kraemer, who was replaced by Robert Parkinson in 2004.[5] Baxter acquired medical device firm Baxa on November 10, 2011. In 2011, Hikma Pharmaceuticals PLC complete the acquisition of Baxter Healthcare Corporation's US generic injectables business (Multi-Source Injectables or MSI).
 

Giving Back

In 2010, the Baxter Corporation instated an initiative called the “Baxter Education Advantage” Program. The program aims to offer scholarship grants of up to $15,000 to students with Hemophilia seeking higher education, offers advice on the college search process, and tools to ease the transition both into college and in preparation for the job search. In 2010, 21 students were named University Scholarship Recipients and 11 students were named Technical School Scholarship Recipients.
 

Environmental activities

Baxter International is recognized as a leading company in environmental performance and reporting, having an explicit focus on environmental issues since 1976; actions included an environmental policy and manual, a series of audits, regular environmental conferences, efforts to prevent and clean up site contamination and staff dedicated to environmental improvements. In 1997, a report produced by the company indicated that changes made to reduce environmental impacts generated savings that exceeded their cost, producing a net profit. Reporting was company-wide, with a variety of aggregation and reporting, including on the company's internet and intranet sites. The company was an early joiner in the "green and greedy" movement, which aims to lessen the environmental impacts of manufacturing its products while saving the company money.  In 2009 the company announced it had reached a variety of its environmentally friendly goals, and that it would continue to try to reduce waste, emissions, energy use and environmental incidents over the coming years.
 

Structure

Sales in 2009 were 42% in the United States, 33% in Europe, 13% in Asia Pacific, 8% in Latin America and 4% in Canada. In 2009, Baxter had approximately 49,700 employees. The breakdown of regional employees in 2009 was 41% in the United States; 30% in Europe; 14% in Asia Pacific; 12% in Latin America; and 2% in Canada. In 2009, Baxter International spent $917 million on research and development.
 

H1N1 vaccine

In June 2009, Baxter International announced it expected to have the first commercial vaccine for the H1N1 ("swine flu") influenza as early as July of the same year. The company has been one of several working with the World Health Organization and United States Centers for Disease Control and Prevention on the vaccine, and uses a cell-based rather than egg-based technology that allows a shorter production time.
 

Controversies

2008 Chinese heparin adulteration

In 2008, the quality of blood thinning products produced by Baxter was brought into question when they were linked to 19 deaths in the United States. Upon inspection one of the raw ingredients used by Baxter were found to be contaminated – between 5 and 20 percent – with a substance that was similar, but not identical, to the ingredient itself. The company initiated a voluntary recall, temporarily suspended the manufacture of heparin, and launched an investigation.

 

Investigation into the contamination has focused on raw heparin produced by Changzhou Scientific Protein Laboratories, a China based branch of Scientific Protein Laboratories, based in Waunakee, Wisconsin. Due to procedural errors Changzhou SPL's facilities was never subject to an inspection by US FDA official, as required by FDA rules. The factory's products were also never certified as safe for use in pharmaceutical products by Chinese FDA officials as Changzhou SPL was itself registered as a chemical company and not a drugs manufacturer. Though Baxter was first to recall heparin because of increased adverse reactions, after the contaminant was identified and testing protocols were shared with other manufacturers globally, over a dozen other companies in nearly a dozen countries issued recalls, which linked back to certain supply points in China.
 

2009 avian flu contamination

In early 2009, samples of viral material supplied by Baxter International to a series of European laboratories were found to be contaminated with live Avian flu virus (Influenza A virus subtype H5N1). Samples of the less harmful seasonal flu virus (subtype H3N2) were found to be mixed with the deadly H5N1 strain after a vaccine made from the material killed test animals in a lab in the Czech Republic. Though the serious consequences were avoided by the lab in the Czech Republic,Baxter claimed the failed controls over the distribution of the virus were 'stringent' and there was 'little chance' of the lethal virus harming humans.
 

2009 drug cost inflation

On July 2, 2009, Kentucky Attorney General Jack Conway announced a settlement between the state and Baxter Healthcare Corporation, a subsidiary of Baxter International, worth $2 million. The company had been inflating the cost of the intravenous drugs sold to Kentucky Medicaid, at times as much as 1300%.
 

2010 hepatitis C infections

In 2010, a jury in Las Vegas, Nevada ordered Baxter to pay $144 million to patients who had been infected with Hepatitis C after doctors wrongly reused dirty medical supplies to administer propofol to patients. The jury granted the award, despite the fact that the label for propofol clearly states that it is for single-patient use only and that aseptic procedures should be used at all time.
 

2008–2010 tax dodging

In December 2011, the non-partisan organization Public Campaign criticized Baxter for spending $10.45 million on lobbying and not paying any taxes during 2008–2010, instead getting $66 million in tax rebates, despite making a profit of $926 million.