Baxter (NYSE:BAX) reported modest growth in sales and a healthy surge in profit during the 2nd quarter, which the company attributed partially to increasing demand for its plasma products in emerging markets.
The global healthcare giant posted $661 million in profit, or $1.19 per diluted share, during the 3 months ended June 30. That’s a 7.5% jump in earnings and a 11.2% increase in per-share value over the $615 million, or $1.07 per share, reported during the same period last year.
Sales grew a modest 1% to $3.57 billion, compared with $3.54 billion in sales during the 2nd quarter of 2011.
Baxter also noted a new 10-year agreement with Netherlands-based Stichting Sanguin Bloedvoorziening to expand its capacity for plasma therapies in developing markets. Sanguin will provide up to 1.6 million liters of plasma capacity per year, according to regulatory filings.
"Emerging and developing markets are adopting these therapies," chairman & CEO Robert Parkinson said during a confernece call with investors. "[Plasma proteins] are, again, what I’d describe as medically necessary therapies. So their high priority is emerging, developing markets dedicate more spending to health care."
Baxter further noted a 4% increase in its medical products sales driven by growth in injectables and IV therapies. The company’s infusion systems and anesthesia products both saw declines during the quarter, while renal products saw no change in sales compared with the same period last year.
BAX shares slid 0.6% to $56.08 today, trading at $56.08 as of about 2:40 p.m.