From that point on, Cerus could expand across the world and become a mainstream technology in blood safety. Cerus forecasts that it can achieve profitability by fiscal 2015, so this is definitely a fledgling biotech to keep an eye on.
The blood clotter
For more conservative investors who don’t like the unclear futures of Haemonetics and Cerus, a safer bet is Baxter International Inc. (NYSE:BAX). Baxter International Inc. (NYSE:BAX) manufactures and sells products for the treatment of hemophilia, immune disorders, kidney disney, trauma, infectious diseases and other acute medical conditions.
Last quarter, Baxter International Inc. (NYSE:BAX)’s earnings increased 4% year-on-year to $1.16 per share, topping the consensus estimate by three cents. Revenue also rose 3% to $3.67 billion, slightly lower than the $3.70 billion that analysts had projected. The company’s largest business segment, medical supplies, reported a 1% top-line increase to $2.03 billion, comprising 55% of its revenue.
Baxter’s hemophilia business is its second largest segment, reporting a 2% increase in revenue to $849 million and accounting for 23% of total sales. Hemophilia is a rare genetic disorder, found primarily in males, which prevents blood from clotting after injuries. Baxter’s hemophilia business produces recombinant and plasma-based factor VIII (the clotting factor that hemophilia A patients lack), and a therapy known as FEIBA (Anti-Inhibitor Coagulation Complex) for patients who develop inhibitors against the clotting factor.
Baxter International Inc. (NYSE:BAX)’s Rixubis, a genetically engineered protein that can better control bleeding in Hemophilia B patients, was recently approved by the FDA, making it the first new treatment for the disorder in over 15 years.
In addition to medical supplies and hemophilia treatments, Baxter International Inc. (NYSE:BAX) also produces antibody replacement therapy for patients with immune-system disorders (BioTherapeutics), organic sealants to aid in tissue healing (BioSurgery), and vaccines – making it a solid, diversified choice in the healthcare industry that also pays out a decent 2.7% quarterly dividend.
The Foolish Bottom Line
In closing, all three of these companies have their investable qualities, although they are all better suited for different types of investors. Haemonetics Corporation (NYSE:HAE) is a good choice for growth investors that like a business that fearlessly grows to dominate a field that will be in constant demand. Cerus Corporation (NASDAQ:CERS), on the other hand, is a tempting choice for speculative growth investors, since its INTERCEPT technology could revolutionize blood safety across the world. Meanwhile, conservative investors should probably stick with Baxter International, which has a history of slow but consistent growth that has rewarded long-term shareholders.
The article Following the Blood Trail to Three Worthy Healthcare Investments originally appeared on Fool.com and is written by Leo Sun.
Leo Sun has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Leo is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.
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