$BAX Earnings Disappoint Estimates in Q1? – Analyst Blog

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Will Baxter’s (BAX) Earnings Disappoint Estimates in Q1? – Analyst Blog

Baxter International Inc. BAX is set to report first-quarter 2015 earnings results on Apr 23. Last quarter, Baxter reported earnings of $1.34 per share, which beat the Zacks Consensus Estimate by 2.3% (3 cents). Let’s see how things are shaping up for this quarter.

Factors at Play

Baxter continues to expand its product portfolio by winning approvals for new drugs and products, particularly designed for the treatment of hemophilia. We expect the BioScience segment to report strong results owing to growing demand for Hemophilia drugs.

During the quarter, Baxter revealed positive efficacy and safety data from its Phase 3 clinical trial of BAX 817 – an investigational recombinant factor VIIa (rFVIIa) for hemophilia A or B patients who develop inhibitors to the treatment.

Upon approval, BAX 817 will broaden the existing portfolio of hemophilia and inhibitor treatments within Baxter’s BioScience business, which includes FEIBA and OBIZUR (approved in Oct 2014) for acquired hemophilia A.

Apart from BAX 111, Hemophilia A drug BAX 855 also holds promise. Developed in partnership with Nektar Therapeutics NKTR, BAX 855 is pending approval in the U.S. and Japan. The company is also continuing with its pediatric studies on BAX 855, upon completion of which, it expects to file for marketing authorization with the European Medicines Agency in 2016.

Although an innovative product pipeline is the key growth catalyst for Baxter, the impending split will remain an overhang. Further, foreign currency volatility will continue to hurt results in the near term. Intense competition in the hemophilia franchise and lackluster hospital spending are other major concerns.

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