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Baxter International Inc. BAX, on Thursday, announced the introduction of Hemopatch Sealing Hemostat with room temperature storage. It is a ready-to-use absorbable collagen pad intended for tissue sealing, dura sealing and hemostasis (the stopping of a flow of blood).
Per Baxter, the Hemopatch Sealing Hemostat is effective and safe for use in open surgery and minimally invasive surgery. It is currently available to order throughout Europe.
The Hemopatch Sealing Hemostat has been used by surgeons as a reliable solution for tissue sealing, dura sealing and hemostasis for a long period of time. The product now includes the innovation of including room temperature storage, which resulted from the collaboration between surgeons and Baxter.
With the latest product innovation, BAX aims to boost its Advanced Surgery business under the broader Medical Products & Therapies segment and promote enhanced patient care.
Likely Trend of BAX Stock Following the News
Following the announcement, shares of the company lost nearly 9.5% till last trading.
Historically, the company has gained a top-line boost from its various product innovations. Although the latest announcement is likely to benefit BAX’s top-line growth going forward, the stock declined overall.
Baxter currently has a market capitalization of $14.28 billion. It has an earnings yield of 8.9%, better than the industry’s negative yield. In the last reported quarter, BAX delivered an earnings surprise of 11.5%.
Significance of Baxter’s Latest Launch
Per Baxter, the evolution of the product will likely optimize accessibility in the operating room, thereby delivering an immediate solution for surgeons to control bleeding or prevent leakage.
Per an expert familiar with the use of Hemopatch Sealing Hemostat, it eliminates the need for refrigeration and increases product shelf life. These are crucial improvements as it will likely enable surgeons to have the product available in the operating room. After application, the product shows an enhanced adhesive strength, thus achieving better surgical outcomes.
Per management, removing the need for refrigeration is expected to address customers’ requirements of having the product on hand in critical situations.
Industry Prospects in Favor of BAX
Per a report by Grand View Research, the global hemostasis and tissue sealing agents market was estimated at $8.67 billion in 2024 and is projected to expand at a CAGR of 9% between 2025 and 2030. Factors like increased demand supported by rising surgery volumes and growing demand for critical care among the elderly population due to their vulnerability to slow-healing injuries and wounds are likely to drive the market.