Over 100 Total Lots Up For Auction at One Location - UT 10/25

Baxter resumes some IV shipments, offers update on facility hit by Hurricane Helene

por Gus Iversen, Editor in Chief | October 09, 2024
Business Affairs
After getting battered last week by Hurricane Helene, Baxter's North Cove manufacturing facility in Marion, North Carolina has resumed shipments of IV products to hospitals and dialysis patients.

The company, which had placed a week-long pause on the shipments, revealed the news in an update, stating in part:

We have moved finished goods from our North Cove site that were not impacted by the storm and are inspecting other finished goods on site. This inventory will be used to support current allocations in the short term. Several of our global plants are scaling and ramping production to help meet U.S. needs, and we expect to receive product from these sources throughout the month of October.

The facility experienced water infiltration, prompting an ongoing recovery effort focused on supporting employees, restoring operations, and maintaining supply continuity for patients.

Opened in 1972, North Cove is Baxter’s largest manufacturing facility and includes more than 2,500 employees. The site primarily manufactures intravenous and peritoneal dialysis solutions and is the largest manufacturer of these solutions in the U.S.

Baxter has reported there is no structural damage to the facility.

Ahead of the storm, Baxter implemented its hurricane preparedness plan, which included evacuation plans, as well as proactively moving products to higher ground or secure storage where feasible. The heavy rain and storm surge triggered a levee breach, which led to water permeating the site. The bridges accessing the site have also been damaged.

ECRI has published a market analysis and functional equivalents device report designed to help healthcare providers navigate shortages caused by the Baxter facility shutdown. The report identifies up to the top three alternatives from other manufacturers to the IV and irrigation solutions affected by the plant closure, and can be downloaded here.

In a letter to President Biden, the American Hospital Association called for federal action to address IV solution shortages in the wake of the Baxter shut down.

"This facility is a critical supplier of intravenous (IV) and peritoneal dialysis solutions, producing approximately 60% — or 1.5 million bags — of the IV solutions used every day in the U.S.," the letter states. "We are aware that Baxter is actively working on remediation efforts and exploring alternative production sites to mitigate the impact of the plant closure. We also have learned that Baxter and all other suppliers of these IV solutions have put their customers on strict ordering allocations and are not accepting new customers."

In its own update, Baxter stated it would communicate adjustments to allocations within the next two weeks as the company assesses timing of inbound products and shipments.

You Must Be Logged In To Post A Comment