BAX Stock May Rise Following the Launch of FDA-Approved Hemopatch Pad

Baxter International BAX announced the launch of Hemopatch Sealing Hemostat in the United States. This innovative, ready-to-use collagen pad is designed for hemostasis and sealing during surgical procedures, making it suitable for both open and minimally invasive surgeries. Hemopatch is unique as it can be stored at room temperature and is activated upon contact with moisture, offering enhanced convenience and efficiency in the operating room.

With surgical bleeding and leakage continuing to present significant challenges in clinical settings, Hemopatch addresses a critical need for reliable, easy-to-use solutions. Its versatility and effectiveness across various surgical specialties, including general, cardiovascular, hepatic and orthopedic procedures, are expected to support improved patient outcomes, reduce surgical complications and optimize workflow for healthcare professionals.

Likely Trend of BAX Stock Following the News

Following the announcement, shares of the company traded flat till yesterday’s closing. Shares of the company have gained 7.9% in the year-to-date period compared with the industry’s 8.3% growth. The S&P 500 has gained 0.6% in the same time frame.

The launch of Hemopatch positions Baxter to capture greater market share in the global surgical hemostats and sealants market, projected to grow steadily due to rising surgical volumes and demand for minimally invasive procedures. Its room-temperature storage, ease of use and broad applicability across surgical disciplines can drive hospital adoption, which will strengthen Baxter’s surgical portfolio and create a recurring revenue stream, ultimately boosting long-term growth and profitability.

BAX currently has a market capitalization of $16.15 billion. It has an earnings yield of 7.9%, which is higher than the industry’s 0.04%. In the last reported quarter, BAX delivered an earnings surprise of 14.58%.

More on BAX’s Hemopatch Sealing Hemostat

Baxter’s Hemopatch Sealing Hemostat is a highly advanced collagen-based pad engineered to deliver both rapid hemostasis and effective tissue sealing during surgical procedures. Its performance relies on the synergistic interaction of two key components, collagen and NHS-PEG. The white, tissue-facing side of the pad is coated with NHS-PEG, which reacts with blood or other body fluids to form a hydrogel that enhances adhesion and seals the tissue surface.

Simultaneously, the collagen structure promotes the aggregation of platelets, triggering the release of coagulation factors that, together with plasma components, form fibrin and support clot formation. The pad’s three-dimensional matrix readily absorbs fluids and adds mechanical strength to the developing clot, ensuring stability and rapid control of bleeding, often within just 2 minutes.

Beyond its immediate effectiveness, Hemopatch offers multiple clinical benefits that support improved surgical outcomes. It can be used across a wide range of surgical specialties for sealing tissue, stopping and preventing leaks, and achieving fast, reliable hemostasis. One of its notable features is the ability to be fully absorbed and replaced by host tissue, typically within six weeks to eight weeks based on preclinical studies. This bioresorbable characteristic minimizes long-term foreign body presence and supports natural healing processes, though the exact resorption timeline may vary depending on the amount used and the surgical site.

Industry Prospects in Favor of BAX

Per a report by Fortune Business Insights, the global hemostats market size was estimated at $2.70 billion in 2023 and is expected to grow seeing a CAGR of 6.76% from 2024 to 2030.

The market growth is driven by the increasing prevalence of chronic diseases and the growing volume of surgical procedures, which have heightened the demand for hemostats to manage bleeding during intricate surgeries.

BAX’s Zacks Rank & Key Picks

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

Some better-ranked stocks in the broader medical space that have announced quarterly results are CVS Health Corporation CVS, Integer Holdings Corporation ITGR and AngioDynamics ANGO.

CVS Health, carrying a Zacks Rank of 2 (Buy), reported first-quarter 2025 adjusted earnings per share (EPS) of $2.25, beating the Zacks Consensus Estimate by 31.6%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Revenues of $94.59 billion outpaced the consensus mark by 1.8%. CVS Health has a long-term estimated growth rate of 11.4%. Its earnings surpassed estimates in the trailing four quarters, with an average surprise of 18.1%.

Integer Holdings reported first-quarter 2025 adjusted EPS of $1.31, beating the Zacks Consensus Estimate by 3.2%. Revenues of $437.4 million surpassed the Zacks Consensus Estimate by 1.3%. It currently sports a Zacks Rank #1.

Integer Holdings has a long-term estimated growth rate of 18.4%. ITGR’s earnings surpassed estimates in three of the trailing four quarters and missed once, the average surprise being 2.8%.

AngioDynamics, currently sporting a Zacks Rank #1, reported a third-quarter fiscal 2025 adjusted EPS of 3 cents against the Zacks Consensus Estimate of a 13-cent loss. Revenues of $72 million beat the Zacks Consensus Estimate by 2%.

ANGO has an estimated fiscal 2026 earnings growth rate of 27.8% compared with the S&P 500 composite’s 10.5% growth. AngioDynamics’ earnings surpassed estimates in the trailing four quarters, the average surprise being 70.9%.

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

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