Baxter BioPharma Solutions Loses CMO Client
Financial expectations for Baxter’s biopharma solutions arm will drop 10% as the result of a client’s decision to move its manufacturing in house.
International demand from Baxter’s contract manufacturing partners drove a slight increase in sales (2%) on a constant currency basis, James K. Saccaro, corporate vice-president and Chief Financial Officer of Baxter, said during a second quarter earnings call on July 29, 2015. Despite this increased demand, Saccaro also revealed that its biopharma solutions franchise is expected to decline approximately 10% as the result of the decision by a major customer to self-manufacture its products that were previously contract manufactured by Baxter.
Baxter’s BioPharma Solutions, Baxter’s worldwide manufacturing arm, specializes in parenteral drug commercialization solutions for pharma clients. Despite the news of an expected sales decline for this business unit, it still has a fairly new collaborative manufacturing partnership with SAFC for the development of antibody-drug conjugates in the pipeline. Through the partnership, BioPharma Solutions will perform sterile final filling services for all of SAFC’s ADC products. In addition to filling, Baxter will complete regulatory testing and validation, packaging duties, and import/export paperwork to ensure product lots are approved for distribution.
Source: Seeking Alpha
