Medical product giant Baxter International Inc. reported second quarter profit dropped 9 percent on declining sales in its biosciences unit and from the costs of a settlement with the financially troubled Greek government.
Baxter, which makes blood therapies and medication delivery devices, said net income fell to $535 million, or 90 cents a share, from $587 million, or 96 cents a share. Revenues rose 2 percent to $3.19 billion.
The Deerfield-based company said the results included an after-tax charge of $22 million, or 3 cents a share, for the write-down of certain accounts receiveable “in anticipation of a settlement with the government of Greece.”In Greece, the government pays the cost of medical care.
Baxter’s sales in its biosciences business were down 4 percent to $1.4 billion. The company said sales were hurt by larger rebates it gives to state Medicaid programs for the poor for its products as part of the new health care reform law. In addition, the company said it had weaker sales from antibody therapies and vaccines.
Still, Baxter said the decline in sales was partially offset by growth of its blockbuster blood-clotting drug Advate.
In Baxter’s other two key divisions, sales of medication delivery products were up 9 percent to $1.2 billion while sales of renal products for the treatment of kidney disease rose 6 percent to $585 million.
bjapsen@tribune.com
