Piper Jaffray Reiterates Overweight Rating On BAX

Piper Jaffray is reiterating its OW rating on shares of Baxter International Inc. (NYSE: BAX).

“The consent agreement with the FTC requiring the sale of a portion of Talecris' assets is not so unexpected and could create an opportunity for Baxter and other competitors like CSL,” Piper Jaffray writes.

“Given the number 3 and 4 market position of Grifols and Talecris, certain compromises to satisfy regulators were a distinct possibility. The sale of the US Koate business is relatively minor (~$40 mil in revenues) and the 2 collection centers represent less than 2% of the combined centers for Grifols and Talecris, by our estimates.

“However the sale of Melville represents around 25% of Talecris' plasma capacity, and could open up this business to share gains, particularly as the IVIG products from the plant will no longer be sold under the Gamunex brand.”

Baxter International currently trades at $57.44.