China quality problems may form Baxter (BAX) the next Mattel (MAT)

A plant in China may be producing flawed ingredients for the big-selling Baxter International (NYSE:BAX) blood thinner Heparin. According to The Wall Street Journal it is the sameblood-thinner that is under inspection after reports of hundreds of allergic reactions and four deaths among the drug’s users.”

While the FDA floped the examine that facility, it is Baxter’s responsibility to insure the safety of its own products. The debacle is not unlike that which deviled Mattel (NYSE:MAT) final year when it was importing toys from China that restricted high levels of lead.

In Baxter’s case, however, it appears that society have lost lives.

Baxter and the FDA now probably face months of criticism, much of it coming from Congress which is already concerned about the quality of China-made products.

Baxter plus needs to anguish about whether it will be viewed as having any liability in the cases where Heparin caused illness. It looks like a trial lawyer’s dream.

Douglas A. McIntyre is an editor at 247wallst.com

Original post by Douglas McIntyre

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