About Baxter International Inc.
A medical products manufacturer, Baxter International is a leading producer of intravenous (IV) fluids and systems. It also makes infusion pumps, pre-filled syringes, biological sealants, and inhaled anesthetics, as well as dialyzers and other products for the treatment of end-stage renal disease (ESRD). In 2015 Baxter split its operations into two companies -- one focused on biopharmaceuticals (
Baxter operates in two primary segments -- Hospital Products and Renal. The Hospital Products segment, which accounts for about two-thirds of total revenue, makes IV solutions and administration sets, pre-filled syringes and vials for injectables, IV nutrition products, pre-mixed drugs and drug reconstitution systems, infusion pumps, inhalation anesthetics, and biosurgery instruments. It also provides services related to pharmacy compounding (customized drug preparation) and drug formulation.
The Renal segment provides products and services to help treat ESRD, or irreversible kidney failure, and acute kidney injuries. Its portfolio includes therapies for peritoneal dialysis, in-center and home hemodialysis, continuous renal replacement therapy, and other dialysis services.
The group's subsidiaries include Baxter Colorado, Baxter World trade, Baxter Corporation, and
Baxter earns about 60% of its annual revenues from sales in international markets. The company has more than 50 manufacturing locations in 20 countries, as well as more than 100 distribution centers and sales operations in over 100 countries around the globe. Primary operating regions outside the US include Canada, Europe, Latin America, and the Asia/Pacific region.
The company maintains 15 manufacturing sites in the US, including three in Puerto Rico. It operates R&D centers around the world, including facilities in Belgium, China, Germany, Italy, Japan, Sweden, and the US.
Sales and Marketing
Baxter markets its products to hospitals, nursing homes, dialysis centers, medical and research laboratories, and other health care centers, as well as to physicians and patients themselves. Baxter uses a combination of direct sales representatives and independent distributors and wholesalers. In the US, third parties such as
The company advertises through catalogs, merchandising bulletins, direct mail, and trade publications.
By keeping its operations diverse and nimble, Baxter has generally kept its revenues on the rise. However, as a result of the spin-off of the Baxalta operations in 2015, revenue declined 40% to $10 billion. In 2016 revenue increased 2% to $10.2 billion as sales from both the Renal and Hospital Products segments grew. Sales in the US and the Asia/Pacific region increased, but slipped in Europe and Latin America and Canada.
Net income, which also fell in 2015, rose more than 400% to $5 billion in 2016. This was driven by an increase in other income and income from continuing operations before income taxes. Cash flow from operations also dipped when Baxter spun off Baxalta. It remained stable in 2016, staying at $1.7 billion.
Baxter has three primary strategic objectives: optimizing its core product portfolio, increasing operational efficiency, and allocating capital in a disciplined fashion.
In terms of portfolio, the company categorizes its products as either core (positioned for long-term growth and higher margins), core return on capital (products it strives to maintain or improve in market performance), maintain or manage differently (products for which it aims to sustain or reposition its investment), or strategic bets (products for evaluation). Baxter uses this information to prioritize its products, determining which have higher potential for growth and which should potentially be retired or divested. To advance its core products, it seeks expansion into new global markets while driving innovation through research and development. For example, in 2017 Baxter integrated its DoseEdge Pharmacy Workflow Manager, which collects compunding data for pharmacists, with the Epic Willow Inpatient Pharmacy System, which can send that data directly to a patient's electronic health record.
Baxter is also focused on improving its cost structure and manufacturing capabilities. To this end, in 2012 Baxter announced that it would expand capacity of its plasma-based medicines by building a new manufacturing facility in Covington, Georgia. The plant is expected to cost more than $1 billion over a period of five years and will open in 2018. Other initiatives include investing innovation, growing its product portfolio, and increasing patient access.
To manage its capital allocation, the company strategically seeks merger and acquisition opportunities as well as opportunities to invest in the company's innovation efforts.
Mergers and Acquisitions
In mid-2017 Baxter acquired India-based Claris Injectables from Claris Lifesciences for approximately $625 million. With that purchase, the company gained capabilities in the production of generic injectable medicines. Baxter also gained a portfolio of development and marketed injectables, including 11 US-approved molecules. Post-merger, the company expects to launch between seven and nine new products annually.
1 BAXTER PKWY
Deerfield, IL 60015-4634
Phone: 1 (224) 948-2000
Employer Type: Publicly Owned
Stock Symbol: BAX
Stock Exchange: , NYSE
Chairman and CEO: José E. Almeida
Corporate VP and CIO: Paul E. Martin
Corporate VP and CFO: James K. Saccaro
Employees (This Location): 1,500
Employees (All Locations): 50,000
Mission Viejo, CA
Saint Paul, MN
North York, Canada
Christchurch, New Zealand