Hurricane Helene closes Baxter International's key manufacturing center in North Carolina – Baxter Intl (NYSE:BAX)

Baxter International Inc. BAX. has closed its largest manufacturing facility following significant damage caused by Hurricane Helene. The hurricane, which hit the southeastern United States with deadly force, caused power outages and flooding across the region.

Baxter's North Cove plant, located in Marion, North Carolina, is the largest producer of intravenous and peritoneal dialysis solutions in the country. The company has stated that this disruption will likely have a negative effect on its financial performance.

On Monday, Baxter shares initially fell as much as 4.1%, but then stabilized with a 2.3% drop, trading at $38.01 at midday in New York. Baxter stock ended up closing just below $38 per share on Monday.

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Patrick WoodMorgan Stanley equity analyst covered the hurricane-related disruption in a note on Monday, outlining the potential financial damage caused by the storm. Wood pointed to a 2017 hurricane, which affected Baxter's capacity in Puerto Rico, as a precedent for Hurricane Helene.

“To prove it, if we assume a $140 million hit to BAX's fourth quarter (since the third quarter is essentially over), that means roughly four days of closure for all of EE's chronic therapies and infusion therapies businesses.” “U.S.,” Wood wrote in the note. “Although, in reality, it is unlikely that this is the only facility where PD and IV solutions are produced and BAX will presumably be able to change the capacity.”

Hurricane Helene, a Category 4 storm, hit Florida on Thursday with winds reaching 140 miles per hour and moving north. The storm caused severe flooding, including a levee break that sent water into the Baxter facility. The flood damaged stock and raw materials, according to a company spokesperson.

It is not yet clear whether the plant closure will affect medical procedures in the US, although Wells Fargo analysts noted that other companies, such as ICU Medical, Fresenius Kabi and B Braun SE, could compensate for the loss of supply of Baxter.

Baxter is working closely with local officials to get the North Cove plant back online. Fortunately, none of the facility's 2,500 employees were injured. However, the company is still checking the safety of its workforce as communications in the area have been hampered by cell service outages.

Keep reading:
• Hurricane Helene devastates the southeastern US, destroying infrastructure and leaving millions of people powerless

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