Baxter Q4 Edited

In our Regenerative Medicine business, we completed a Phase III study evaluating TISSEEL Fibrin Sealant as a hemostatic agent in vascular surgery, and filed for regulatory approval of our TISSEEL Fibrin Sealant for use in facial surgery in the U.S.....
And as you know, there were a number of factors negatively affecting sales in the quarter, which collectively totaled $80 million, or two percentage points of growth. These items include the impact of healthcare reform, the U.K. recombinant Factor VIII tender loss and a difficult comparison in vaccines related to pandemic revenues reported in the fourth quarter of 2009.
For the full year, sales increased 4% to $13.1 billion. And excluding foreign currency, sales growth was 3%, in line with our guidance. In terms of the individual businesses and beginning with BioScience, in the fourth quarter, global BioScience sales of $1.5 billion increased 1%. Excluding foreign currency, BioScience sales increased 4%, reflecting accelerated growth versus the prior three quarters.
As previously mentioned, BioScience sales were adversely impacted by five percentage points due to the impact of healthcare reform, the U.K. tender loss and the difficult vaccine comparison. Excluding these items, BioScience sales advanced 9% on a constant-currency basis. For the full year, global BioScience sales exceeded $5.6 billion and increased 1% on both a reported basis and after adjusting for foreign currency.
Within the product categories, recombinant sales of $534 million declined 5% as expected. Excluding foreign currency, sales declined 3%, primarily due to the U.K. tender and a reduction of inventory levels in the U.S. channel.....

Matthew Miksic - Piper Jaffray Companies
And then finally, this TISSEEL product that you mentioned for hemostasis, anything you can tell us about -- just the size of that opportunity, what that could mean, whether it comes this year or late this year would be helpful?

Robert Parkinson
We have quantified that and communicated, I know we've quantified and communicated that.

Mary Ladone
We have. But we have several indications that are already approving. Clearly, the competition in this area, Matt, has the broad hemostasis indication. So we are a little bit put at a compromised position. So it would help in terms of share gains to have this particular indication.

Robert Hombach
And TISSEEL is a meaningfully sized product for us. So returning to growth with this new indication would be helpful.

Matthew Miksic - Piper Jaffray Companies
So it's incremental, not a game changer necessarily?

Mary Ladone
Correct.

Vascular Solutions Acquires Zerusa For US$4.3 Mln

(RTTNews) - Medical devices company Vascular Solutions, Inc. (VASC: News ) said Thursday it has acquired the assets of Zerusa Limited for 3.15 million euros or US$4.3 million. The deal allows the company to have sole control for the sale of Guardian hemostasis valves in the U.S. and abroad.
As per the terms, Vascular will pay 2.85 million euros or US$3.9 million at closing and 0.3 million euros or US$0.4 million six months after closing.
Vascular said the acquisition will be accounted for as a business combination in the first quarter of 2011. The company expects the deal to be accretive to earnings by about $0.01 per share in 2011, with insubstantial transition and integration costs incurred in the first quarter of 2011.
Zerusa is an Ireland based medical device company, which makes Guardian hemostasis valves that are are designed to maintain hemostasis during interventional catheterization procedures.
Vascular Solutions has been selling the Guardian hemostasis valves in the U.S. under an exclusive distribution relationship with Zerusa since 2007.
In 2010, worldwide sales of the Guardian hemostasis valves were $1.7 million, consisting of $1.3 million in sales

Morgan out, Hart in as CEO at Portland-based HemCon Medical Technologies

John W. Morgan, the chief executive of Portland-based HemCon Medical Technologies since 2004, resigned Monday "to pursue other opportunities," the company said in a press release.
He has been replaced as CEO by Nick Hart, who has been the company's chief financial officer for the last two years.
HemCon, a privately held company that makes and sells bandages and dressings that promote coagulation and discourage infection, employs about 126 people in Portland, Ireland and the Czech Republic. The company doesn't disclose revenues.
The company's dressings are derived from chitosan, a component of shrimp shells. They have been widely used by the U.S. military and, the company says, are responsible for saving at least 100 lives. For the last several years, the company has pushed aggressively into civilian markets.
A federal jury in New Hampshire last spring awarded a $29.4 million judgment to HemCon rival Marine Polymer Technologies, which makes a biocompatible dressing made from algae and claimed HemCon had violated its patent. HemCon appealed that award and has been permitted to continue selling its products while the case proceeds.
HemCon Chairman William P. Wiesmann said Monday that the change was "a natural progression," as Morgan sought bigger challenges.
Wiesmann said annual sales had fallen off from a high of more than $72 million several years ago, but that he expects the company to be profitable again by the fourth quarter of this year.

Exhibit Caution with Bovine Thrombin