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Why Baxter International (BAX) Is Down 21.5% After Novum Infusion Pump Disruptions and Lawsuits

Simply Wall St · 11/05 07:36
  • In late October 2025, Baxter International reported third-quarter results showing increased sales to US$2,835 million but shifted from a net profit last year to a US$46 million net loss, citing operational disruptions and quality issues related to its Novum LVP infusion pump.
  • This earnings report was followed by several class action lawsuits alleging Baxter concealed product defects that caused patient harm, raising concerns over product safety and company transparency.
  • We’ll now examine how recent legal and quality challenges surrounding the Novum LVP product could reshape Baxter’s investment narrative.

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Baxter International Investment Narrative Recap

To own Baxter International today, you must see value in its ability to execute turnaround plans despite its unprofitable status and headline risks. The recent Novum LVP infusion pump quality issues and resulting lawsuits directly impact the main short-term catalyst, a recovery in hospital infusion product volumes, by bringing product reliability and regulatory scrutiny to the forefront. The largest risk now is potential extended disruptions in key product segments, which could delay normalization and impact both revenue and margins.

Among Baxter’s recent announcements, the updated 2025 sales guidance is highly relevant, with operational sales growth revised to 1% to 2% for the full year. This tempered expectation likely reflects the immediate pressures from Novum LVP challenges and underscores how quickly quality and legal problems can shift near-term growth prospects for companies with medical device exposures.

In contrast, investors should be aware of the potential long-term impact if Novum-related suspensions extend further, since...

Read the full narrative on Baxter International (it's free!)

Baxter International's narrative projects $12.1 billion revenue and $913.6 million earnings by 2028. This requires 3.7% yearly revenue growth and a $1.16 billion earnings increase from -$247.0 million.

Uncover how Baxter International's forecasts yield a $24.07 fair value, a 34% upside to its current price.

Exploring Other Perspectives

BAX Community Fair Values as at Nov 2025
BAX Community Fair Values as at Nov 2025

Six members of the Simply Wall St Community estimate Baxter's fair value between US$14.80 and US$20,500.83. With such polarized analyses, consider how legal and operational risks could weigh on Baxter's ability to achieve volume and margin recovery.

Explore 6 other fair value estimates on Baxter International - why the stock might be worth 18% less than the current price!

Build Your Own Baxter International Narrative

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.