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Baxter (BAX) Gets FDA Nod for Spectrum IQ, Secures Infusions

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Baxter International Inc. (BAX - Free Report) recently announced FDA approval of the Spectrum IQ Infusion System with Dose IQ Safety Software in order to simplify EMR (Electronic Medical Record) administration for patients.

The Illinois-based global medical technology company has partnered with First Databank (FDB) to integrate FDB Infusion Knowledge, an evidence-based library of IV medications, into Dose IQ Safety Software.

Meanwhile, Baxter’s existing infusion-system Sigma Spectrum platform has achieved an average of 97% drug library compliance within the first 30 days of implementation. Per management, each year in the United States, there are an estimated 1.2 million preventable harmful medication errors associated with injectable medications.

Notably, the latest development strengthens Baxter’s foothold in helping protect high-risk infusions, thereby ensuring patient safety.

About Spectrum IQ

The Spectrum IQ is the first system designed for bi-directional EMR integration to ascertain precise medication for patients. The system works on Spectrum infusion pump technology, an important step to make infusions safer. It is the only infusion pump to feature Line Check Notification technology that gives a visual notification matching the infusion pump and the medication being infused.

Furthermore, the system comes with a built-in Dose/Rate Change Error Prevention Feature that helps clinicians protect high-risk infusions.

Apart from patients, the system helps clinicians through embedded on-screen barcode technology. It provides scan prompts to help maintain or increase auto-programming compliance and automatically document infusion data into the EMR.

Moreover, the system can lead up to 53% cost savings in IV (Intravenous) tubing sets and up to 30% reduction in IV tubing usage.

Market Prospects

Per a study by Markets and Markets, the healthcare IT (HCIT) market is expected to reach $280.25 billion by 2021 at a CAGR of 15.9%. Primary growth drivers of the market are high return on investment in HCIT solutions, government directives and the need to curtail escalating healthcare costs.

Hence it can be concluded that Baxter’s move has been timely and strategic.

Price Performance

In the past year, Baxter’s shares have rallied 25.5%, compared with the industry’s return of 14.9%.

Zacks Ranks & Key Picks

Baxter carries a Zacks Rank #2 (Buy).

Other top-ranked stocks in the broader medical space are ABIOMED, Inc. , Genomic Health, Inc. and Varian Medical Systems, Inc. .

Abiomed has a long-term growth rate of 27%. The stock sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Genomic Health has an expected growth rate of 187.5% for the current quarter. The stock sports a Zacks Rank #1.

Varian Medical has a projected long-term growth rate of 8%. The stock carries a Zacks Rank #2.

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