Baxter International

Baxter International Inc. is the world's largest manufacturer and distributor of hospital supplies and a leading provider of medical specialty products. Serving over 5,000 hospitals, Baxter operates in two primary industry segments: medical specialties and medical/laboratory products and distribution. The company's major products and services include dialysis systems, cardiovascular devices, laboratory and surgical equipment, and intravenous and diagnostic systems. Over the course of its history, Baxter has introduced several medical innovations, including: blood banks; the first commercial kidney dialysis system; and continuous ambulatory peritoneal dialysis (CAPD), a self-administered alternative to hemodialysis in a hospital. In the early 1990s, Baxter held an overwhelming 75 percent of the worldwide market for CAPD. During the 1940s, Willem Kolff, a Dutch physician, was applying dialysis procedures to treatment of kidney failure, and Baxter began making commercial use of his methods in the United States. In 1948, Baxter's product line was expanded to include Fenwal Laboratories' new unbreakable plastic container for blood storage, the precursor to the Viaflex plastic IV bag, a product that would serve as a basis for the development of a plastic delivery system for dialysis solutions. Baxter formed a pharmaceutical specialties division under the name Travenol Laboratories in 1949. This division was responsible for developing and marketing chemical compounds and medical equipment. The company expanded considerably during the 1950s, opening a facility in Cleveland, Mississippi, which would later produce intravenous and irrigating solutions, needles, dialysis solutions, respiratory therapy products, and many disposable devices used in medical treatment. In addition, Baxter made several important acquisitions during the decade, including Hyland Laboratories of Los Angeles in 1952, as well as Flint, Eaton and Company and Fenwal Laboratories of Boston in 1959. That year, the company also established its international division, which later was divided into two separate divisions, Travenol Europe and the Americas-Pacific Division, both of which established manufacturing facilities in 17 countries and distributed products in more than 100 countries. Baxter shares began trading on the New York Stock Exchange in 1961. The company's steady growth during subsequent years prompted shareholders to vote in favor of several two-for-one stock splits. In 1963, Baxter ended its 30-year-old distribution contract with American Hospital Supply and thereafter developed its own sales force. The company also built two Arkansas facilities during this time and acquired Disposable Hospital Products as well as Dayton Flexible Products Company and Cyclo Chemical Corporation. Moreover, Baxter's international operations were making extensive inroads into European markets, especially through the development of its wholly owned subsidiaries. Several important technological innovations occurred at Baxter during the 1960s and 1970s. The first disposable total bypass oxygenator for open-heart surgery was introduced in 1962, and, in 1968, Baxter marketed the Hemofil antihemophilic factor, which was six times as powerful as any similar product offered at that time. The company also developed the Autoplex anti-inhibitor coagulant, another important innovation in the treatment of hemophilia. In 1979, Baxter offered continuous ambulatory peritoneal dialysis as an alternative to hemodialysis for kidney failure. CAPD proved popular as it could be performed at home by the patient, was less costly than hospital treatment, provided more uniform results, and allowed increased patient mobility. Nevertheless, Loucks and other leaders at Baxter believed that the company's continued growth depended on its exploitation of new markets for health care products and services. Under Loucks' guidance, Baxter acquired Medcom Inc., a medical education and information company, in