The best thing about Baxter (BAX)
is that so much of its business comes from oligopolistic markets with
pretty steady demand and reimbursement. The worst thing about Baxter is
that so much of its business comes from oligopolistic markets with
pretty steady demand and reimbursement.
In theory, Baxter is a
good stock to own during slow patches in the med-tech world because the
demand for profitable businesses like infusion, recombinants,
plasma-derived therapies, and other bioscience products doesn't drop
much with the economy, and Baxter reports growth while others contract .
On the flip side, the company has historically not looked to target new
growth markets, and the company's growth looks pretty pokey when the
sector revives.
With a few signs of life here and there in
med-tech, as well as oncoming competition in biosciences, it is worth
asking whether Baxter is still a name that investors want to hold today.
Read more here:
Baxter Still Defensive, But Is Now The Time For Offense?
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