Baxter reveals DoJ probe of Tisseel, Artiss sealants

Baxter (NYSE:BAX) this week said it received a civil investigative demand from the US Dept. of Justice’s Commercial Litigation Branch related to its Tisseel and Artiss products.

The Deerfield, Ill.-based company said the inquiry relates to contingent discount arrangements and other promotions for the 2 sealant products, and that it was cooperating with the DoJ on the matter, according to an SEC filing.

Baxter said it also resolved an investigative matter initiated in 2012 by the US Attorney for the Western District of North Carolina relating to quality and manufacturing practices at its North Cove facility.

The parties involved entered into a deferred prosecution agreement and a civil settlement, with Baxter paying approximately $18 million and implementing “certain enhanced compliance measures,” according to an SEC filing.

Earlier this month, Baxter saw shares hold steady after the medical device maker exceeded earnings expectations on Wall Street with its 4th quarter results, but barely missed revenue estimates.

The company posted profits of $243 million, or 44¢ per share, on sales of $2.64 billion for the 3 months ended Dec. 31, for bottom-line growth of 18.5% on sales growth of 1.5% compared with the same period last year.

Adjusted to exclude 1-time items, earnings per share were 57¢, ahead of consensus on The Street, where analysts were looking for sales of $2.65 billion.

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