Can Things Get Worse for Baxter?

I like to be upfront about my investing mistakes. Without a doubt, the biggest dud on this year’s Buy List is Baxter International (BAX). Just when I think things can’t get any worse for them, they do:

Biopharmaceutical company Halozyme Therapeutics Inc said it was voluntarily recalling certain lots of its fluid absorption drug, Hylenex, after Baxter International Inc confirmed the presence of small flake-like glass particles in the drug.
On Sunday, Halozyme reported that its development partner Baxter has had “manufacturing failures” in making Hylenex.

Baxter is now down -27% on the year for us. The stock is at a new 52-week low and it’s going for about 10 times next year’s earnings.

Posted by Eddy Elfenbein on May 17th, 2010 at 10:23 am

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