Baxter & EFCNI Collaborate To Improve Care For Preterm Born

Baxter International Inc. (NYSE:BAX) recently collaborated with the European Foundation for the Care of Newborn Infants (EFCNI) with a view to improve care for preterm born in Europe. This move is likely to boost Baxter’s Clinical Nutrition business.

Notably, Baxter will be raising awareness for the new standards released by EFCNI at the new European Standards of Care for Newborn Health lately.

Earlier this year, Baxter launched an educational video series on the appropriate use of PN (parenteral nutrition) to help reduce clinical malnutrition. (Read More: Baxter & ASPEN Launch PN Tools to Boost Clinical Nutrition)

Rationale

Per management, preterm birth is one of the leading causes for neonatal mortality in Europe and accounts for more than half of all infant deaths. Globally, more than 15 million infants are born preterm annually. Moreover, European countries vary widely in providing care to newborns.

This is likely to increase the use of Baxter’s Numeta G13E triple-chamber PN product.

For investors’ notice, Numeta G13E was launched in Europe in 2016 to treat preterm infants who are at high risk for infection and malnutrition in the early days of their lives.

Clinical Nutrition in Focus

Baxter’s Clinical Nutrition solutions provide life-saving nutrition options. The company offers diverse and flexible nutrition solutions to meet different PN formulation needs.

In the last reported quarter, the unit contributed 7.8% to Baxter’s net sales. The unit saw strong growth internationally. In fact, management expects positive contribution from the Clinical Nutrition business in the next quarter.

It is also encouraging to note that EMEA sales grew 4% at constant currency in the last reported quarter.

Price Performance

Over the past year, shares of Baxter have rallied 1.3% against the industry’s 0.1% decline. The current level also compares favorably with the S&P 500 index’s decline of 1%.

The stock has a Zacks Rank #3 (Hold).

Key Picks

Some better-ranked stocks in the broader medical space are Integer Holdings Corporation (NYSE:ITGR) , OPKO Health, Inc. (NASDAQ:OPK) and Surmodics (NASDAQ:SRDX) .

Integer Holdings has an earnings growth rate of 31.2% for the next quarter and a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

OPKO Health’s long-term earnings growth rate is projected at 12%. The stock carries a Zacks Rank of 2.

Surmodics’ long-term earnings growth rate is estimated at 10%. The stock carries a Zacks Rank #2.

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