If Intralipid 20% IV Fat Emulsion is frozen, the size of the emulsion droplets increases. They can form aggregates, which can lead to pulmonary circulation blockage and result in an adverse life-threatening health occurrence. According to Baxter International (BAX), no associated adverse events have been reported to date.
Baxter International stated that all customers should remove all such products and return them to the company for refunds. In the event of any adverse events, Baxter advised reporting such an event to the FDA’s MedWatch Adverse Event Reporting program.
Although drug and device recalls are integral to the healthcare industry, they can impact investor sentiment and can impact the company’s business and stock price. Although Baxter International’s voluntary recall was a case of mishandling, there have been several other cases in the industry where the efficacy and safety of a product came into question, leading to recalls of those devices.
Other medical device companies in the US that have recalled product lots include Boston Scientific (BSX), Johnson & Johnson (JNJ), and Abbott Laboratories (ABT).
Investors who seek indirect industry exposure can consider investing in the Vanguard S&P 500 ETF (VOO). VOO holds ~0.14% of its portfolio in BAX.
View more information: https://marketrealist.com/2017/10/chart-in-focus-baxter-internationals-intralipid-20-recall/