Baxter International Inc. (BAX) Healthcare Stock Checkup

The treatment will add to its quickly growing expertise in blood treatments and biologics. Speaking of which, Baxter International Inc. (NYSE:BAX) and Halozyme Therapeutics, Inc. (NASDAQ:HALO) had HyQvia approved for marketing in Europe earlier this year. The therapy boosts the immune systems of patients with primary and secondary immunodeficiencies, and combines multiple therapies — both intravenous and subcutaneous — into one subcutaneous product. It also allows patients to administer treatment at home every three to four weeks. In other words, it knocks the convenience category out of the park. Halozyme Therapeutics, Inc. (NASDAQ:HALO) has had a tumultuous life on the public market, so this could be just the stabilizer shareholders need.

The only other treatment in late-stage development is a phase 3 trial for autologous stem cells being evaluated for patients with heart disease. I don’t see this having a successful outcome, much like the Gammagard Liquid trial for Alzheimer’s. The medical community doesn’t fully understand Alzheimer’s, or how best to utilize stem cells in a controlled treatment, although using autologous (coming from the patient) stem cells may be analogous to plasma-enrichment therapy — something that does, in fact, work. The bad news is that it may not work. The good news is that Baxter can afford to take risks. The great news is that the rewards could be tremendous.

Foolish bottom line
Baxter International Inc. (NYSE:BAX) is smaller than Johnson & Johnson, more diverse than Stryker Corporation (NYSE:SYK), and operating at optimal efficiency. It may not have the stellar biologic drugs of Johnson & Johnson, but it is carving out a nice niche for itself in the biologic arena. I cannot guarantee that shares won’t cool off a little bit from recent highs. However, with a dividend near 3%, and a P/E under 17, there isn’t much long-term investors can complain about.

The article Baxter Healthcare Stock Checkup originally appeared on Fool.com and is written by Maxx Chatsko.

Fool contributor Maxx Chatsko has no position in any stocks mentioned. Check out his personal portfolio, his CAPS page, or follow him on Twitter @BlacknGoldFool to keep up with his writing on energy, bioprocessing, and biotechnology. The Motley Fool recommends Johnson & Johnson. The Motley Fool owns shares of Johnson & Johnson.

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