* 4th-qtr profit 89 cents/share vs 82 cents a year ago
* Sees sales growing 10 percent in 2013
* To acquire investigational hemophilia compound
* Shares up 1.3 percent in morning trading
By Debra Sherman
Jan 24 Medical device and bioscience company
Baxter International Inc reported higher quarterly
earnings on Thursday and forecast sales growth of 10 percent for
Fourth-quarter sales were particularly strong in its
bioscience business, which sells blood therapy products,
including hemophilia treatments and plasma proteins, the company
said. U.S. demand was especially robust.
Baxter executives told a conference call that capacity
constraints continue to limit production of plasma proteins.
The company, which also makes medical infusion pumps and
equipment used for kidney dialysis, said quarterly net profit
was $494 million, or 89 cents per share, up from $463 million,
or 82 cents per share, a year earlier.
Excluding one-time items, Baxter earned $1.26 per share,
matching the average estimate on Wall Street, according to
Sales rose to $3.75 billion from $3.59 billion.
For the current quarter, Baxter forecast earnings of $1.03
to $1.05 per share before special items, with sales growth of 2
percent to 3 percent.
For the full year, it expects earnings of $4.60 to $4.70 per
share before special items, and cash flow from operations of
The previously announced acquisition of Gambro AB, expected
to close by the end of the second quarter, will reduce full-year
2013 earnings by 10 cents to 15 cents per share, Baxter said.
Including Gambro, Baxter said its forecast reflects 2013
sales growth of about 10 percent before the impact of foreign
Baxter shares rose in morning trading, gaining 90 cents, or
1.3 percent, to $67.47 on the New York Stock Exchange.
Separately, Baxter said it had agreed to acquire an
investigational hemophilia compound, OBI-1, and related assets
from Inspiration BioPharmaceuticals Inc, and certain other
assets from Ipsen Pharma S.A.S. in conjunction with
Inspiration's bankruptcy proceedings.
Baxter will make an upfront payment of $50 million and
additional payments of up to $20 million based on winning
regulatory approvals in the United States and elsewhere.
Baxter executives said on the conference call the company
expects to submit an application for the compound later this
year to the U.S. Food and Drug Administration, which has agreed
to consider it on an expedited basis. The executives said they
did not expect approval in Europe until 2015.
They said OBI-1 could eventually reach annual sales of $200
"It's not a big product. This is more a strategic move to
strengthen their competitive position in recombinant therapy,"
said Danielle Antalffy, an analyst with Leerink Swann.