Software Update Leads To False Alarms In Baxter's Spectrum Infusion Pumps, Urgent Correction Underway

Baxter International Inc BAX has issued an urgent correction for its Spectrum V8 and Spectrum IQ infusion pumps, applicable in the U.S. and Puerto Rico, due to a software error leading to increased false upstream occlusion alarms. 

The correction will involve reverting the software of all affected pumps back to the earlier version.

The software updates installed on the Spectrum V8 and Spectrum IQ pumps have been reported to trigger alarms for upstream occlusions when no actual blockages are present. 

Such false alarms could interrupt or delay medical therapy, posing serious health risks to patients reliant on these life-supporting medications. 

Baxter has received three reports of severe injury that may be linked to this issue.

Baxter representatives are coordinating with all affected customers to schedule the software rollback to address this. 

In the interim, users may experience an increased frequency of false upstream occlusion alarms on impacted pumps. However, users can continue utilizing the Spectrum V8 and Spectrum IQ pumps by adhering to the on-screen instructions or referring to the pump preparation, programming, and alarm troubleshooting sections in the Operator's Manual. 

In case of unresolved upstream occlusion alarms, users are advised to unload and reload the set.

• Barclays analyst Matt Miksic maintains Baxter with an Overweight, lowering the price target from $58 to $54.
• Keybanc analyst Matthew Mishan maintains an Overweight and lowers the price target from $53 to $51.

The urgent correction applies to the SIGMA Spectrum Infusion System (V8 Platform) with product code 35700BAX2 and software version v8.01.01 and the Spectrum IQ Infusion System with Dose IQ Safety Software with product code 3570009 and software version v9.02.01.

Price Action: BAX shares are down 4.06% at $45.10 on the last check Monday.