Flooding from Hurricane Helene forced Baxter International to temporarily shut down production of its McDowell County facility where 2,500 workers produce primarily intravenous and peritoneal dialysis solutions. The plant, near Marion, is the largest manufacturer of these solutions in the United States, and the largest factory operated by the Deerfield, Illinois-based health products company.
“We have confirmed that the majority of our more than 2,500 employees are safe, and we are actively working to confirm the well-being of those we have been unable to reach. Cell phone access continues to be an issue in the area, which is challenging these efforts,” the company responded via email on Tuesday to questions. “We continue to work around the clock to minimize potential disruptions and resume production to help ensure patients and providers have the products they need.”
The company added that it is assessing damage and working on plans to resume production “as soon as we are able.”
Baxter has about 60,000 employees around the globe.
Ahead of the storm, Baxter implemented its hurricane preparedness plan, which included employee evacuation plans, as well as 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. Bridges accessing the site have also been damaged, according to the company.
Baxter is communicating with customers to minimize potential disruptions. That includes managing inventory and implementing a protective allocation process by product line to help support supply continuity and equitable product distribution. The company will leverage Baxter’s global manufacturing network to help mitigate supply chain issues as it continues efforts to fully restore its manufacturing operations.
“Our hearts and thoughts are with all those affected by Hurricane Helene,” said Baxter CEO José (Joe) E. Almeida in a statement. “The safety of our employees, their families, and the communities in which we operate remains our utmost concern, and we are committed to helping ensure reliable supply of products to patients. Remediation efforts are already underway, and we will spare no resource – human or financial – to resume production and help ensure patients and providers have the products they need.”
The Baxter International Foundation has committed $1.5 million in donations to its humanitarian aid partners to help address recovery needs, including allocating additional funds to its Employee Disaster Relief Fund, and is matching employee donations $2:$1 to relief efforts.
Baxter opened its North Cove facility in 1972.
Wells Fargo analysts wrote in a research note Monday that it was too early to tell whether the shutdown would affect medical procedures in the U.S., and it would likely depend on how long the plant was closed, according to a report in The Chicago Tribune. The analysts expect hree other companies that manufacture IV solutions will be able to offset some of the lost supply.
Erin Fox, associate chief pharmacy officer at University of Utah Health and an expert on drug shortages, said a shortage is likely, given that events such as shipping delays and ice storms can cause shortages.
“At this point, we don’t know how significant the shortage will be, but I do expect there will be supply problems,” Fox told The Tribune.
It can be difficult for hospitals to keep huge supplies of extra intravenous solutions on-hand in case of shortages, she said. Hospitals may only keep a week or two worth of intravenous solutions at the ready, she said.