RBC Capital Markets Downgrades Baxter International from Outperform to Sector Perform, Keeps $73.00 PT

In a report published Tuesday, RBC Capital Markets analyst Brandon Henry downgraded Baxter International, Inc. BAX to Sector Perform from Outperform, keeping its $73.00 price target. According to the report, it is expected that longer-acting products are to be a "game changer" for the Hemophilia A space as ~64% of patients said they would eventually switch to a longer-acting recombinant factor VIII product. “Approximately 82% of hemophilia A patients were aware of longer-acting rFVIII products in development. However, ~58% have not yet discussed these products with their hematologist, as patients see their hematologist on average ~2 times annually. Nonetheless, we expect longer-acting products to be a "game changer" for the hemophilia A space as ~64% of patients said they would eventually switch to a longer-acting rFVIII product (~32% of patients were still "unsure”).” Some potential risks to BAX include not garnering FDA approval for longer-acting pegylated rFVIII product, longer-term market share losses could be much greater than expected (3,000bp+). BAX closed Monday at $69.33.