(Bloomberg) -- Baxter International Inc. has closed its biggest manufacturing facility after it was damaged when Hurricane Helene ripped through the US Southeast, causing widespread power outages and flooding.
Baxter’s North Cove plant, located in Marion, North Carolina, is the largest manufacturer of intravenous and peritoneal dialysis solutions in the country. The disruption is expected to negatively impact the company’s financial results, according to a statement it released Sunday.
The Deerfield, Illinois-based company’s shares pared a drop of as much as 4.1% in early trading Monday before trading down 2.3% to $38.01 as of 12:01 p.m. in New York.
Helene struck Florida as a Category 4 hurricane on Friday, bringing deadly 140 mile-per-hour winds and flooding across multiple states in the Southeast. Heavy rain and storms from the storm triggered a levee breach that led to water entering the facility, damaging some stock and raw materials, a Baxter spokesperson said.
It’s too early to tell whether the shutdown will affect medical procedures in the US, Wells Fargo analysts said in a research note. Other makers of products that compete with Baxter’s — ICU Medical Inc., Fresenius Kabi AG and B Braun SE — should be able to offset the lost Baxter supply, the note said.
Baxter is working with local officials to implement a plan to bring the plant back online as soon as possible, the spokesperson said. North Cove employs more than 2,500 people, none of whom were injured at the plant. Baxter said it’s still working to confirm the wellbeing of employees, but those efforts have been challenged by lack of cellular phone service in the area.
--With assistance from Ike Swetlitz.
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