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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Paul Senior who wrote (37738)	5/5/2010 12:51:02 AM
From: Spekulatius	Read Replies (3) \| Respond to of 78670

re BAX - i don't like the feel of the pump recall announcement as wel.The 400-600M$ figure does only capture the cost of recall, not that of potential lawsuits as I understand it. The whole thing has the eery feel of BAX Y2003 issues (that seem far worse back then), so maybe we are not at the bottom yet. As for the recalled Collegue pump, it seems that BAX danced around a good solution for years with a product that seems deficient until the FDA pulled the plug. Why they have done so, I can only speculate <g> - it appears that BAX is not really interested (or maybe not even competent) in pumps but rather want to sell their consumables, so pumps are a necessary nuisance to do that. Evidence is that they had another company (SIGMA) develop a competing and obviously better product but without a migration path for their legacy users of BAX own pump. Strange and it certainly leaves a bad impression on many (including the FDA). That said BAX is a large health care company and while they certainly made mistakes in this business they seem to do OK in others and OK over the long term. Hopefully management learns from this disaster and makes better decisions going forward. The stock market says BAX is on timeout and I think that is an correct assessment.