Baxter International's IV Manufacturing Recovery

By Christy Santhosh and Kashish Tandon

(Reuters) – Baxter International is gradually restoring its IV manufacturing facility in North Carolina, aiming to meet 90% to 100% of customer needs by year-end.

The facility's outage from Hurricane Helene flooding may limit IV fluid supply in the U.S., as warned by the U.S. Department of Health and Human Services.

Baxter's Marion plant produces 60% of the nation’s IV fluids and peritoneal dialysis solutions, amounting to 1.5 million bags daily (American Hospital Association).

These IV fluids are crucial for providing nutrients or replenishing fluids lost due to injuries or illnesses.

Hospitals are starting to limit elective procedures while carefully managing intravenous solutions for patients, noted Jefferies analyst Matthew Taylor.

Baxter, a key U.S. IV fluid supplier, is increasing the allocation of its highest-demand IV fluids: from 40% to 60% for direct customers and from 10% to 60% for distributors, effective October 9.

Germany's Fresenius is exploring faster production of infusion solutions at its North Carolina facility to address potential shortages.

Similarly, B. Braun Medical is ramping up IV fluid production at its plants in California and Florida.

The U.S. health department collaborates with other IV solution manufacturers to tackle the supply issue.

Hospital Operators' Responses

UVA Health University Medical Center in Virginia has postponed elective surgeries due to the IV fluid shortage.

Cedars-Sinai Medical Center in Los Angeles is implementing contingency plans to conserve IV fluids while seeking alternative sourcing.

HCA Healthcare stated it has sufficient IV fluids and contingency plans, while Mass General Brigham is receiving only 40% of its usual supply from Baxter.

Earlier, the American Hospital Association urged President Biden to address the ongoing supply shortage.

Evercore analyst Vijay Kumar projected a 1% revenue hit for Baxter in the fourth quarter due to the incident, but fiscal 2025 should remain unaffected if production rebounds by year-end.

The U.S. health agency indicated that Hurricane Milton could further disrupt the IV fluid supply chain.

The FDA reported shortages of Baxter's Dextrose solutions for low blood sugar and saline solutions.

Hurricane Helene has led to significant destruction, claiming over 200 lives, marking it the deadliest storm to strike the mainland U.S. since Hurricane Katrina in 2005.