Baxter (BAX, Financial), a leading global medical company, has announced plans to discontinue its intravenous (IV) solution business operations in China. The decision follows numerous challenges in the market, prompting Baxter to explore various strategic transformations for long-term sustainability. The company aims to phase out its China market operations for IV solutions while ensuring patient safety and reliable product supply.
The halt in operations will begin with the cessation of IV solutions production at Baxter's Shanghai facility. The company will no longer supply the Chinese market with IV products, including 28 specific solutions like 0.9% Sodium Chloride Injection and 5% Glucose Injection.
Despite this shift, Baxter remains committed to the Chinese market, focusing on introducing innovative products and exploring local partnerships. The company intends to continue offering solutions that cater to different application scenarios.
Baxter has been a dominant player in the IV solutions industry, previously holding a 80% share of the U.S. market. In China, Baxter's IV business peaked in 2007, supplying over 100 million bags annually and dominating hospital usage.
However, Baxter's focus in China has shifted towards peritoneal dialysis solutions, reflecting a change in market demand and increased local competition in the IV sector. The decision to cease IV operations in China is also influenced by a recent production halt in North Carolina, U.S., due to Hurricane Helene, which affected Baxter's global supply network. The company is adjusting its operations globally to address U.S. shortages, prioritizing exports from Canada, China, the UK, and Ireland.
The Chinese IV market has evolved, with domestic manufacturers gaining strength, contributing to price drops and reduced demand due to national efforts to promote responsible antibiotic use. Leading Chinese companies like Kelun Pharmaceutical now dominate the market with significant sales figures.
