Baxter Seeks to Market Blood Substitute

Baxter Healthcare Corp. said it has developed a blood substitute that looks like the real thing and carries oxygen just like it, but is safer and easier to store and has been successfully used in heart surgery patients. The company said it hopes to get permission to market the blood substitute in Europe within a year, and it expects to apply for permission in the United States in about a year. However, researchers cautioned that long-term effects are not yet known and that costs could prohibit wide use. A liter of real blood typically costs $150 to $300, while substitute blood could cost much more as companies work to recoup hundreds of millions of dollars spent on research. Baxter, a subsidiary of Deerfield, Ill.-based Baxter International Inc., said it conducted clinical trials in Europe with 209 cardiac bypass patients who required blood transfusions following surgery. The company has been in competition with about 20 other companies for a market that potentially could be worth billions of dollars. Baxter shares rose 25 cents to close at $48.375 on the New York Stock Exchange.