- Company to share strategy for ongoing growth and innovation aligned with mission to save and sustain lives and vision to transform healthcare
- Recent Hillrom acquisition positions Baxter to accelerate value for patients, clinicians, investors and other stakeholders
- Company announces strong long-range financial outlook for 2022–2025
Baxter International Inc. (NYSE:BAX), a global medtech leader, will showcase its ongoing trajectory of transformation and growth at its 2022 Investor Conference, being held today in Glenview, Ill. The company’s executive leadership team will highlight Baxter’s strategy to continue creating compelling value for patients, clinicians and investors through leading-edge innovation, market expansion, operational efficiency and other vital growth levers.
This is Baxter’s first Investor Conference since its Dec. 2021 acquisition of Hillrom, and presentations will underscore how the combination unlocks the next phase of Baxter’s transformation journey. The acquisition expands the reach of critical healthcare products from both legacy portfolios across global geographies and sites of care. Additionally, Baxter’s newly enhanced capabilities in connected care position the company to make an even greater impact across the care continuum in line with its mission to save and sustain lives and vision to transform healthcare.
The conference will also feature an overview of key steps Baxter is taking to bolster the strength of its supply chain function in response to the unprecedented materials, labor and freight pressures facing industries globally.
“We are excited to share how Baxter is poised to make an even greater difference for the stakeholders who put their trust in us, from patients and their caregivers to our investors,” said José (Joe) E. Almeida, chairman, president and chief executive officer. “Our acquisition of Hillrom begins the next stage of our strategic transformation, creating new potential to expand product access and accelerate our presence in connected care, even as we continue pursuing innovation across our core portfolio. As always, the principles of corporate responsibility and operational excellence remain at the foundation of our ongoing transformation.”
Baxter Innovation Hall
Both in-person and virtual Investor Conference attendees will have the opportunity to take a closer look at Baxter innovation at the event’s Innovation Hall, which features approximately 40 recently launched and late-stage development products from across Baxter’s wide-ranging essential healthcare businesses.
“The Innovation Hall highlights some of the latest Baxter technologies and therapies that are now making a life-sustaining difference for patients worldwide, or are expected to reach the market in the near term,” said Almeida. “It also reflects the wide array of settings where patients and caregivers might experience Baxter products.” These range from physicians’ offices to the hospital to the home.
Examples of Baxter’s products showcased at the event include:1
- Sharesource, a remote patient monitoring platform that allows healthcare professionals to monitor their patients’ home dialysis treatments and remotely adjust therapy without the need for patients to make unplanned visits to the clinic. Included in the Sharesource ecosystem are Sharesource Adequest, a software application that can assist clinicians in providing timely and effective treatment for patients, and the Sharesource MyPD app, which provides peritoneal dialysis (PD) patients an interface to collect and view therapy exchange and vitals data, and upload it to the Sharesource platform.
- The Voalte Platform, an ecosystem of clinical communication technologies designed to help reduce communication delays and errors, simplify workflows and gain efficiencies. The Voalte Platform includes Voalte Nurse Call, a secure, reliable platform for communication in the hospital between patients and caregivers; Voalte Mobile Solution, which connects care teams no matter where they are; and Voalte Alert & Alarm Management, which brings together data to intelligently manage notifications about changes in patient conditions.
- The Novum IQ Infusion Platform, representing Baxter’s latest developments in infusion therapy and medication safety. The technology is designed to bring together multiple smart infusion pumps (large volume, syringe and PCA [patient-controlled analgesia]) in combination with Baxter’s Dose IQ safety software and IQ Enterprise connectivity suite to help improve patient treatment, prevent harm and personalize therapy, with the capability to fully integrate with hospital electronic medical records (EMRs).
- The RetinaVue Care Delivery Model, which offers primary care providers a simple and affordable way to administer retinal exams during office visits. The RetinaVue Care Delivery Model includes automated features that make it easy to capture high-quality images in the office and can be seamlessly integrated into clinical workflows, including connecting to the practice’s EMR system.
- ExactaMix Pro with Abacus, the latest version of the ExactaMix compounder now used in more than 1,000 hospital pharmacies and compounding centers. ExactaMix Pro is designed to meet the evolving needs of the modern pharmacy and features an easy-to-clean, highly responsive touch screen, a graphical user interface designed to help simplify common pharmacy tasks, a quad-core processor to deliver speed and performance, and advanced cybersecurity for the pharmacy. Abacus software provides proven dose calculation, has user-defined warning limits and helps minimize the risk of calculation errors.
- Bardy Carnation Ambulatory Monitor (CAM) Patch, a lightweight and compact single-use device designed to be placed over the heart. The CAM patch provides improved ECG resolution and can provide more information about heart rhythm that may lead to more clinically actionable diagnoses.
- The PrisMax Multi-Organ Support System, which is designed to help simplify delivery of continuous renal replacement therapy (CRRT) and other organ support therapies. The PrisMax 2 system features new solutions within the company’s TrueVue digital health portfolio as well as the PrismaLung+ blood-gas exchanger that delivers extracorporeal carbon dioxide removal (ECCO2R) therapy to support the management of acute respiratory dysfunction.
In conjunction with the Investor Conference, Baxter provided new long-range financial guidance for 2022 to 2025.
Baxter expects constant currency sales growth of 4% to 5% on a compounded annual basis from 2022 through 2025. The company expects 2025 adjusted operating margin to expand by 350 to 400 basis points as compared to expected year-end 2022. Baxter anticipates free cash flow conversion of more than 80% by 2025.
Baxter expects the acquisition of Hillrom to contribute up to $350 million of annual pre-tax cost synergies by 2025. In addition, the company expects to realize up to $200 million in incremental annual revenue synergies by 2025, reflecting the impact of market expansion across the broader portfolio as well as new innovation fueled by Baxter’s expanded capabilities following the acquisition. These synergies are captured in Baxter’s 2022–2025 financial outlook.
“Our 2025 outlook demonstrates confidence in our momentum across our expanded portfolio and pipeline, supported by our commitment to ongoing disciplined financial management,” said executive vice president and chief financial officer Jay Saccaro. “Our strategic approach to capital allocation allows us to continue investing in innovation and growth while returning value to our investors, which is a crucial objective of our operating model.”
Investor Conference Webcast
A webcast of Baxter’s investor conference and accompanying slides can be accessed live from the investor section of the company’s website at www.baxter.com beginning at 8:30 a.m. CDT on May 25, 2022. A replay of the presentations will be posted to the site following the live event.