Baxter Issues Recall Notice for Permanent Removal of Life2000 Ventilation

Baxter BAX has issued a recall for its Life2000 Ventilation System due to a cybersecurity issue discovered through internal testing, per this FDA notice. The recall has been identified by the FDA as the most serious type, which may cause serious injury or death if you continue to use it. The system is part of the company’s Front-line care segment.

Per the recall alert, Baxter has advised users to stop using Life2000 ventilators and has permanently removed them from the market. Baxter’s latest recall notice follows two earlier recalls for the Life2000 ventilation system issued in 2024 and 2023, related to battery-charging issues and potential oxygen-desaturation risks, respectively.

Baxter added the Life2000 Ventilation System to its portfolio through the acquisition of Hillrom in 2021. The system is intended to provide continuous or intermittent breathing support for individuals who require mechanical ventilation assistance, particularly adult patients who need positive-pressure ventilation delivered through an endotracheal tube or a mask. The system consists of the Life2000 Ventilator and the Life2000 Compressor, and it can be used in home or institutional settings but is not intended for use in ambulances or air transportation.

BAX’s Share Price Performance

Although Baxter is permanently withdrawing the Life2000 Ventilation system, its share price has gained 0.9% since the FDA notice issued on Nov. 26. The contrasting move in the share price is likely due to the fact that the system contributed only a negligible portion of Baxter’s total sales. However, such recalls can potentially have an unfavorable impact on the company’s goodwill.

So far this year, Baxter stock has declined 34.6% against the industry’s gain of 4.9%. The S&P 500 Index has risen 18.9% in the same time period.

More on the Recall

Baxter identified a serious cybersecurity issue with the Life2000 Ventilation System that could allow an unauthorized person to access data or change therapy settings. Such changes could cause the life-supporting air-delivery function to fail to operate as intended. As of April 10, 2025, Baxter has reported no serious injuries or deaths associated with this issue.

The company has recommended that home users discuss therapy-replacement options with their healthcare providers and transfer their care to an alternative medical equipment supplier. It has also advised healthcare facilities to discontinue the use of all Life2000 ventilators and compressors within their operations.

Baxter International Inc. Price

Baxter International Inc. price | Baxter International Inc. Quote

BAX’s Zacks Rank & Key Picks

Currently, Baxter carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the broader medical space areBoston Scientific Corporation BSX, IDEXX Laboratories, Inc. IDXX and Cardinal Health CAH.

Boston Scientific, carrying a Zacks Rank #2 (Buy) at present, has an estimated long-term growth rate of 16.4%. BSX’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 7.36%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Boston Scientific’s shares have gained 13.7% compared with the industry’s 5.8% growth so far this year.

IDEXX, carrying a Zacks Rank of 2 at present, has an estimated long-term growth rate of 13%. IDXX’s earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 7.12%.

IDEXX’s shares have gained 82.1% compared with the industry’s 5.8% gain so far this year.

Cardinal Health, carrying a Zacks Rank of 2 at present, has an estimated long-term growth rate of 13.9%. CAH’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 9.36%.

Cardinal Health has rallied 79.5% compared with the industry’s 15.6% gain so far this year.

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This article originally published on Zacks Investment Research (zacks.com).

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