Baxter (BAX) Launches Peri-Strips & Tisseel Prima, Shares Up

Baxter International Inc.BAX recently unveiled Peri-Strips Dry stapler and Tisseel Prima syringe at the 2018 American Society for Metabolic and Bariatric Society (ASMBS) Obesity Week meeting. These launches are likely to boost Baxter's surgical portfolio.

Following the announcement, shares of Baxter rose 0.7% to $63.83 at close.

The stock carries a Zacks Rank #3 (Hold).

More on the Launches

Baxter's Peri-Strips Dry with Veritas (PSDV) Circular is designed to allow a circular surgical stapler to advance across the incision site with minimal tissue injury. It also features Baxter's Secure Grip technology, which provides secure placement of PSDV onto a circular surgical stapler.

Meanwhile, Tisseel Prima is a next-generation syringe that makes it easier to control the application of the fibrin sealant along the staple line. Baxter will also be launching a longer rigid applicator for Tisseel for laparoscopic procedures.

Surgical Portfolio at a Glance

Baxter's surgical portfolio offers products like FLOSEAL Hemostatic Matrix, TISSEEL Fibrin Sealant, COSEAL Surgical Sealant and VASCU-GUARD Patch, among others.

It is encouraging to note that in the recently reported third quarter of 2018, Baxter's Advanced Surgery revenues totaled $200 million, up 14.3% from the year-ago quarter. Revenues shot up 15% at constant currency.

Market Prospects

Grand View Research opines that the global general surgery devices market will see a CAGR of 8% by 2025. Increasing number of surgical procedures coupled with technological advancements is anticipated to drive the market.

Hence, Baxter's latest move is a well-timed one.

Price Performance

The Medical Products industry is currently witnessing a temporary dip owing to the ongoing U.S.-China trade war.

However, we believe positive developments are likely to favor MedTech bigwigs like Baxter whose shares have lost 0.9% against the industry's rally of 1.2% in a year's time. The current level is also lower than the S&P 500 index's 5.1% rise.

Key Picks

A few better-ranked stocks in the broader medical space are Stryker Corporation SYK , Masimo Corporation MASI and Veeva Systems VEEV .

Stryker has a long-term expected earnings growth rate of 10% and a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

Masimo's long-term earnings growth rate is projected at 14.6%. The stock carries a Zacks Rank #2.

Veeva Systems' long-term earnings growth rate is estimated at 19.3%. The stock carries a Zacks Rank #2.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.