It didn't hire anyone to seek strategic alternatives, but Baxter International Inc. (NYSE:BAX) is seen by some as a likely acquisition target, especially after Abbott Laboratories (NYSE:ABT) and Johnson & Johnson (NYSE:JNJ) boosted their vaccines pipelines. Abbott is paying €4.5 billion ($6.6 billion) for the pharmaceutical activities of Belgium's Solvay SA, and J&J paid €301.8 million for 18% of Dutch biotech Crucell NV. Vaccines are hard to produce so they face less generic competition.
Holger Rovini, lead analyst for infectious diseases at Datamonitor,
told The Wall Street Journal there have been so many deals involving big pharmaceutical and smaller vaccine businesses over the past several years that there are not many companies left to be bought.
Barron's
said Baxter offers modest valuation, healthy growth prospects and insulation from possible reform measures. Baxter chairman and CEO Robert Parkinson said the company's five-year plan will lead to
increased sales of 7% to 8% annually for 2009 to 2013 compared to a forecast in 2007 of 7% annual revenue growth. In July, Mad Money host Jim Cramer
said Baxter could be a great part of any diversified portfolio.
Baxter recently boosted its own portfolio as it acquired the continuous renal replacement therapy business of Edwards Lifesciences Corp. (NYSE:EW) for up to $65 million.
Baxter has regained most of its losses since the market bottomed out in March. It was trading at $56.66; its 52-week range is $45.46 to $69.16. -
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