Did Infusion Pump Lawsuit Just Shift Baxter International's (BAX) Patient Safety and Investment Outlook?

• Labaton Keller Sucharow LLP recently filed a securities class action lawsuit against Baxter International and several executives, alleging that the company misled investors about safety concerns, injuries, and patient deaths linked to its Novum LVP infusion pumps.
• This legal development exposes Baxter to heightened operational, regulatory, and reputational risks, given the allegations surrounding unresolved product defects and their reported impact on patient safety.
• We'll explore how the newly revealed design flaws and resulting class action lawsuit could alter Baxter's investment outlook and growth assumptions.

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Baxter International Investment Narrative Recap

To be a shareholder in Baxter International, you need confidence in its ability to innovate, regain trust, and recover from recent setbacks, including operational, regulatory, and reputational challenges tied to the Novum LVP pump lawsuit. The class action directly targets the firm’s current top catalyst, hospital purchasing recovery, while highlighting the biggest risk: further disruptions in product launches and market share erosion from safety concerns, which now appear more material given the paused shipments and stock drop.

Among recent announcements, Baxter’s Q2 2025 results on July 31 are especially relevant, as the company reported improved revenues and profit just as it publicly paused Novum LVP shipments due to identified safety flaws. This timing ties financial recovery and future guidance to the resolution of these product issues, reinforcing how critical successful remediation and market confidence will be for any anticipated turnaround or sustainable revenue growth.

However, investors should also be aware that, if the Novum LVP pause lasts longer than anticipated, or additional regulatory hurdles arise...

Read the full narrative on Baxter International (it's free!)

Baxter International's narrative projects $12.1 billion in revenue and $913.6 million in earnings by 2028. This requires 3.7% yearly revenue growth and a $1,160.6 million increase in earnings from the current -$247.0 million.

Uncover how Baxter International's forecasts yield a $28.00 fair value, a 21% upside to its current price.

Exploring Other Perspectives

Seven fair value estimates from the Simply Wall St Community range from US$14.8 to over US$20,500, signaling substantially varied opinions about Baxter’s potential. Many see upside if innovation and operational recovery are not derailed by ongoing regulatory and legal risks, make sure to consider several viewpoints before deciding how recent events might impact the company’s future.

Explore 7 other fair value estimates on Baxter International - why the stock might be a potential multi-bagger!

Build Your Own Baxter International Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Baxter International research is our analysis highlighting 3 key rewards and 2 important warning signs that could impact your investment decision.
• Our free Baxter International research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Baxter International's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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