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8-K - FORM 8-K - BAXTER INTERNATIONAL INC | c64238e8vk.htm |
Baxter International Inc. One Baxter Parkway Deerfield, IL 60015 |
FOR IMMEDIATE RELEASE
Media Contact:
Deborah Spak, (847) 948-2349
Deborah Spak, (847) 948-2349
Investor Contacts:
Mary Kay Ladone, (847) 948-3371
Clare Trachtman, (847) 948-3085
Mary Kay Ladone, (847) 948-3371
Clare Trachtman, (847) 948-3085
BAXTERS FIRST QUARTER FINANCIAL RESULTS EXCEED GUIDANCE
Company Raises Financial Outlook For 2011
DEERFIELD, Ill., April 21, 2011 Baxter International Inc. (NYSE:BAX) today announced strong
financial results for the first quarter of 2011, and raised its outlook for full-year 2011.
Baxter reported net income in the first quarter of $570 million and earnings per diluted share
of $0.98, which exceed the companys previously-issued earnings guidance of $0.92 to $0.94 per
diluted share. On an adjusted basis, excluding special items in the first quarter of 2010,
Baxters earnings per diluted share increased 5 percent from $0.93 per diluted share in the
prior-year period. Baxters financial results for the first quarter 2010 included after-tax
special items totaling $627 million (or $1.04 per diluted share) related to the COLLEAGUE infusion
pump and a change in the tax treatment of post-retirement prescription drug benefits.
Worldwide sales totaled $3.3 billion and increased 12 percent compared to sales of $2.9
billion in the first quarter of 2010, which included a revenue
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BAXTER REPORTS 1st QUARTER FINANCIAL RESULTS Page 2
adjustment of $213 million associated with the COLLEAGUE infusion pump. Excluding the
COLLEAGUE adjustment, Baxters worldwide sales increased
5 percent over the prior year.
Excluding the impact of foreign currency as well as the COLLEAGUE adjustment, worldwide sales
in the first quarter advanced 5 percent. Sales within the United States increased 10 percent to
$1.4 billion, while international sales of $1.9 billion grew 1 percent.
By business, BioScience revenues totaled $1.4 billion and rose 3 percent (or 4 percent
excluding the impact of foreign currency). Contributing to this performance was robust demand for
GAMMAGARD LIQUID [Immune Globulin Intravenous (Human)] (marketed as KIOVIG outside of the United
States), certain specialty plasma-based therapeutics, and biosurgery products.
Medical Products sales advanced 20 percent to $1.9 billion from $1.6 billion recorded in the
prior year that included the COLLEAGUE adjustment referenced earlier. Excluding the adjustment and
the impact of foreign currency, Medical Products sales increased 5 percent. This performance is
primarily attributable to double-digit growth in the IV Therapies and Global Injectables product
categories, driven by strong demand for intravenous (IV) and nutritional therapies, and a broad
range of generic and pre-mixed injectable drugs. Medical Products also now includes Renal
products.
We continue to implement measures to improve our commercial, operational, and scientific
effectiveness in response to an evolving and challenging environment, said Robert L. Parkinson,
Jr., chairman and chief executive officer. Baxters strong financial position provides us the flexibility to
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BAXTER REPORTS 1st QUARTER FINANCIAL RESULTS Page 3
invest
in and pursue opportunities that expand our diverse product portfolio with innovative products that
save and sustain patient lives and position our company for enhanced growth.
Recent Highlights
Baxter continues to expand its pipeline through investments in research and development as
evidenced by a number of recent achievements:
| The launch of the first and only 30-gram dose vial for GAMMAGARD LIQUID (marketed as KIOVIG in Europe) in the United States. This new dosage form is the most frequently prescribed dose and is expected to enhance convenience for patients. | ||
| The expanded approval throughout Europe of PREFLUCEL, a seasonal influenza vaccine, under the European repeat mutual recognition procedure (rMRP) by the Austrian Agency for Health and Food Safety. PREFLUCEL is manufactured using Vero cell technology, Baxters proprietary technology platform, offering an innovative method of vaccine production compared to conventional embryonated chicken egg production. The 13 participating European Union countries will formally implement the license on a national level to make PREFLUCEL available for the 2011-12 influenza season. | ||
| The launch of OLIMEL parenteral nutrition solution in Canada. OLIMEL, which is also available throughout Europe, is the countrys first triple-chamber container for parenteral nutrition, providing adult patients with the essential ingredients of balanced nutrition protein, carbohydrates and lipids (fats) in a single container, simplifying the preparation of parenteral nutrition for hospitalized patients. | ||
| The submission of a Biological License Application to the U.S. Food and Drug Administration (FDA) for TISSEEL [Fibrin Sealant (Human)] as a hemostatic agent in vascular surgery. TISSEEL is a fibrin sealant currently indicated for use as an adjunct to hemostasis in surgeries involving cardiopulmonary bypass and treatment of blunt or penetrating splenic injuries when control of bleeding by conventional surgical techniques and cautery is ineffective or impractical. | ||
| The presentation of results of a phase III study evaluating the safety and efficacy of ARTISS [Fibrin Sealant (Human)] in 75 patients. ARTISS is a fibrin sealant currently indicated to adhere autologous skin grafts to surgically prepared wound beds, resulting from burns in adult and pediatric |
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BAXTER REPORTS 1st QUARTER FINANCIAL RESULTS Page 4
populations greater than or equal to one year of age. Baxter currently has an efficacy supplement application pending with the FDA for an indication extension for use in facelift surgery. |
| The announcement of a definitive agreement to acquire privately-held Prism Pharmaceuticals, Inc., a specialty pharmaceutical company based in King of Prussia, PA. Prism Pharmaceuticals has developed and received FDA approval for multiple presentations of NEXTERONE® (amiodarone HCl), an antiarrhythmic agent, including the first and only ready-to-use premixed IV formulations, making this life-saving medication readily available in critical-care, time-sensitive circumstances. |
Outlook for Second Quarter and Full-Year 2011
Baxter also announced today its guidance for the second quarter of 2011 and updated its
guidance for the full year.
For full-year 2011, Baxter now expects to achieve sales growth, excluding the impact of
foreign currency, of 3 to 4 percent, and earnings per diluted share, before special items, of $4.20
to $4.28 per diluted share. In addition, the company continues to expect cash flows from
operations of approximately
$2.8 billion. This guidance incorporates the impact of the previously-announced divestiture of the
U.S. generic injectables business, now projected to close during the second quarter.
Baxters previous guidance for full-year 2011 was sales growth, excluding the impact of
foreign currency, of 2 to 3 percent, earnings per diluted share of $4.15 to $4.25, before any
special items, and cash flows from operations of approximately $2.8 billion.
For the second quarter of 2011, the company expects sales growth, excluding the impact of
foreign currency, of 4 to 5 percent, and earnings per diluted share of $1.01 to $1.03, before any
special items.
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BAXTER REPORTS 1st QUARTER FINANCIAL RESULTS Page 5
A webcast of Baxters first quarter conference call for investors can be accessed live from a
link on the companys website at www.baxter.com beginning at 7:30 a.m. CDT on April 21, 2011.
Please visit Baxters website for more information regarding this and future investor events and
webcasts, including the companys Annual Meeting of Shareholders on May 3, 2011.
Baxter International Inc., through its subsidiaries, develops, manufactures and markets
products that save and sustain the lives of people with hemophilia, immune disorders, infectious
diseases, kidney disease, trauma, and other chronic and acute medical conditions. As a global,
diversified healthcare company, Baxter applies a unique combination of expertise in medical
devices, pharmaceuticals and biotechnology to create products that advance patient care worldwide.
This release includes forward-looking statements concerning the companys financial results,
outlook for 2011 and R&D pipeline. The statements are based on assumptions about many important
factors, including the following, which could cause actual results to differ materially from those
in the forward-looking statements: demand for and market acceptance risks for new and existing
products, such as ADVATE, and other technologies; future actions of regulatory bodies and other
governmental authorities, including with respect to the companys implementation of the COLLEAGUE
recall, that could delay, limit or suspend product development, manufacturing or sales or result in
sanctions; product quality or patient safety concerns leading to product recalls, withdrawals,
launch delays, litigation, or declining sales; Sigmas ability to build production capacity to meet
customer demand; future actions of governmental authorities and other third parties as U.S.
healthcare reform legislation and other austerity measures are implemented; additional legislation,
regulation and other governmental pressures, which may affect pricing, reimbursement and rebate
policies of government agencies and private payers or other elements of the
companys business; product development risks; inventory reductions or fluctuations in buying
patterns by wholesalers or distributors; the impact of geographic and product mix on the companys
sales; the impact of competitive products and pricing, including generic competition, drug
reimportation and disruptive technologies; the availability of acceptable raw materials and
component supply; fluctuations in supply and demand and the pricing of plasma-based therapies; the
ability to enforce company patents; patents of third parties
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BAXTER REPORTS 1st QUARTER FINANCIAL RESULTS Page 6
preventing or restricting the
companys manufacture, sale or use of affected products or technology; any impact of the current
economic conditions on Baxter and its customers; foreign currency fluctuations and other risks
identified in the companys most recent filing on Form 10-K and other Securities and Exchange
Commission filings, all of which are available on the companys website. The company does not
undertake to update its forward-looking statements. Financial schedules are attached to this
release and available on the companys website.
# # #
BAXTER PAGE 7
BAXTER INTERNATIONAL INC.
Consolidated Statements of Income (Loss)
Three Months Ended March 31, 2011 and 2010
(unaudited)
(in millions, except per share and percentage data)
Consolidated Statements of Income (Loss)
Three Months Ended March 31, 2011 and 2010
(unaudited)
(in millions, except per share and percentage data)
Three Months Ended | ||||||||||||
March 31, | ||||||||||||
2011 | 2010 | Change | ||||||||||
NET SALES |
$ | 3,284 | $ | 2,927 | A | 12% | ||||||
COST OF SALES |
1,609 | 1,884 | A | (15% | ) | |||||||
GROSS MARGIN |
1,675 | 1,043 | 61% | |||||||||
% of Net Sales |
51.0% | 35.6% | 15.4 pts | |||||||||
MARKETING AND ADMINISTRATIVE EXPENSES |
716 | 683 | 5% | |||||||||
% of Net Sales |
21.8% | 23.3% | (1.5 pts) | |||||||||
RESEARCH AND DEVELOPMENT EXPENSES |
214 | 227 | (6% | ) | ||||||||
% of Net Sales |
6.5% | 7.8% | (1.3 pts) | |||||||||
NET INTEREST EXPENSE |
10 | 19 | (47% | ) | ||||||||
OTHER EXPENSE, NET |
4 | 2 | 100% | |||||||||
PRE-TAX INCOME |
731 | 112 | N/M | |||||||||
INCOME TAX EXPENSE |
154 | 172 | B | (10% | ) | |||||||
% of Pre-Tax Income |
21.1% | 153.6% | (132.5 pts) | |||||||||
NET INCOME (LOSS) |
577 | (60 | ) | N/M | ||||||||
LESS: NONCONTROLLING INTERESTS |
7 | 3 | 133% | |||||||||
NET INCOME (LOSS) ATTRIBUTABLE TO BAXTER |
$ | 570 | $ | (63 | ) | N/M | ||||||
BASIC EPS |
$ | 0.99 | $ | (0.11 | ) | N/M | ||||||
DILUTED EPS |
$ | 0.98 | $ | (0.11 | ) | N/M | ||||||
WEIGHTED-AVERAGE NUMBER OF COMMON SHARES OUTSTANDING |
||||||||||||
Basic |
577 | 602 | ||||||||||
Diluted |
581 | 602 | ||||||||||
ADJUSTED PRE-TAX INCOME (excluding specified items) |
$ | 731 | $ | 700 | C | 4% | ||||||
ADJUSTED NET INCOME ATTRIBUTABLE TO BAXTER (excluding specified items) |
$ | 570 | $ | 564 | C | 1% | ||||||
ADJUSTED DILUTED EPS (excluding specified items) |
$ | 0.98 | $ | 0.93 | C | 5% |
A | Net sales and cost of sales in 2010 included a charge totaling $588 million, or $0.97 per diluted share, which related to the recall of COLLEAGUE infusion pumps from the U.S. market and other actions the company is undertaking outside of the United States, for which there was no net tax benefit recognized. | |
B | Income tax expense in 2010 included a charge of $39 million, or $0.07 per diluted share, to write off a deferred tax asset as a result of a change in the tax treatment of reimbursements under the Medicare Part D retiree prescription drug subsidy program. | |
C | Refer to page 8 for a description of the adjustments and a reconciliation to generally accepted accounting principles (GAAP) measures. |
BAXTER PAGE 8
BAXTER INTERNATIONAL INC.
Note to Consolidated Statements of Income (Loss)
Three Months Ended March 31, 2011 and 2010
Description of Adjustments and Reconciliation of GAAP to Non-GAAP Measures
(unaudited)
(in millions, except per share and percentage data)
Note to Consolidated Statements of Income (Loss)
Three Months Ended March 31, 2011 and 2010
Description of Adjustments and Reconciliation of GAAP to Non-GAAP Measures
(unaudited)
(in millions, except per share and percentage data)
The companys GAAP results for the three months ended March 31, 2010 included specified items
which impacted the GAAP results as follows:
Three Months Ended March 31, | ||||||||||||||||||||
2011 | 2010 | |||||||||||||||||||
Total | Excluding | |||||||||||||||||||
specified | specified | |||||||||||||||||||
GAAP | 1 | GAAP | items | 2 | items | Change | 3 | |||||||||||||
NET SALES |
$ | 3,284 | $ | 2,927 | $ | 213 | $ | 3,140 | 5% | |||||||||||
COST OF SALES |
1,609 | 1,884 | (375 | ) | 1,509 | 7% | ||||||||||||||
GROSS MARGIN |
1,675 | 1,043 | 588 | 1,631 | 3% | |||||||||||||||
% of Net Sales |
51.0% | 35.6% | 51.9% | (0.9 pts) | ||||||||||||||||
MARKETING AND ADMINISTRATIVE EXPENSES |
716 | 683 | | 683 | 5% | |||||||||||||||
% of Net Sales |
21.8% | 23.3% | 21.8% | 0 pts | ||||||||||||||||
RESEARCH AND DEVELOPMENT EXPENSES |
214 | 227 | | 227 | (6% | ) | ||||||||||||||
% of Net Sales |
6.5% | 7.8% | 7.2% | (0.7 pts) | ||||||||||||||||
NET INTEREST EXPENSE |
10 | 19 | | 19 | (47% | ) | ||||||||||||||
OTHER EXPENSE, NET |
4 | 2 | | 2 | 100% | |||||||||||||||
PRE-TAX INCOME |
731 | 112 | 588 | 700 | 4% | |||||||||||||||
INCOME TAX EXPENSE |
154 | 172 | (39 | ) | 133 | 16% | ||||||||||||||
% of Pre-Tax Income |
21.1% | 153.6% | 19.0% | 2.1 pts | ||||||||||||||||
NET INCOME (LOSS) |
577 | (60 | ) | 627 | 567 | 2% | ||||||||||||||
LESS: NONCONTROLLING INTERESTS |
7 | 3 | | 3 | 133% | |||||||||||||||
NET INCOME (LOSS) ATTRIBUTABLE TO BAXTER |
$ | 570 | $ | (63 | ) | $ | 627 | $ | 564 | 1% | ||||||||||
BASIC EPS |
$ | 0.99 | $ | (0.11 | ) | $ | 1.05 | $ | 0.94 | 5% | ||||||||||
DILUTED EPS |
$ | 0.98 | $ | (0.11 | ) | $ | 1.04 | $ | 0.93 | 5% | ||||||||||
WEIGHTED-AVERAGE NUMBER OF COMMON SHARES OUTSTANDING | ||||||||||||||||||||
Basic |
577 | 602 | 602 | |||||||||||||||||
Diluted |
581 | 602 | 4 | 609 | 4 | |||||||||||||||
1 | There were no specified items included in the 2011 GAAP results. | |
2 | Net sales and cost of sales in 2010 included a charge totaling $588 million, or $0.97 per diluted share, which related to the recall of COLLEAGUE infusion pumps from the U.S. market and other actions the company is undertaking outside of the United States, for which there was no net tax benefit recognized. Income tax expense in 2010 included a charge of $39 million, or $0.07 per diluted share, to write off a deferred tax asset as a result of a change in the tax treatment of reimbursements under the Medicare Part D retiree prescription drug subsidy program. | |
3 | Represents the percentage change between the 2011 GAAP results and 2010 results excluding specified items. | |
4 | The denominator used to calculate the GAAP diluted earnings per share in 2010 excluded the dilutive effect of 7 million common stock equivalents because the impact of the specified items resulted in a net loss attributable to Baxter. |
For more information on the companys use of non-GAAP financial measures in this press release, please see the companys Current Report on Form 8-K filed with the Securities and Exchange Commission on the date of this press release. |
BAXTER PAGE 9
BAXTER INTERNATIONAL INC.
Cash Flows from Operations and Changes in Net Debt
(unaudited)
($ in millions)
Cash Flows from Operations and Changes in Net Debt
(unaudited)
($ in millions)
Cash Flows from Operations | ||||||||||||||
(Brackets denote cash outflows) | ||||||||||||||
Three Months Ended | ||||||||||||||
March 31, | ||||||||||||||
2011 | 2010 | |||||||||||||
Net income (loss) |
$ | 577 | $ | (60 | ) | |||||||||
Adjustments |
||||||||||||||
Depreciation and amortization |
158 | 166 | ||||||||||||
Deferred income taxes |
91 | 91 | A | |||||||||||
Stock compensation |
28 | 30 | ||||||||||||
Realized excess tax benefits from stock issued
under employee benefit plans |
(5 | ) | (31 | ) | ||||||||||
COLLEAGUE infusion pump charge |
| 588 | ||||||||||||
Other |
8 | 9 | ||||||||||||
Changes in balance sheet items |
||||||||||||||
Accounts and other current receivables |
(68 | ) | (33 | ) | ||||||||||
Inventories |
(61 | ) | (94 | ) | ||||||||||
Accounts payable and accrued liabilities |
(135 | ) | (101 | ) | ||||||||||
Business optimization and infusion pump payments |
(60 | ) | (23 | ) | ||||||||||
Other |
(162 | ) B | (263 | ) B | ||||||||||
Cash flows from operations |
$ | 371 | $ | 279 | ||||||||||
Changes in Net Debt |
||||||||||||||
Increase (decrease) |
||||||||||||||
Three Months Ended | ||||||||||||||
March 31, | ||||||||||||||
2011 | 2010 | |||||||||||||
Net debt, beginning of period |
$ | 1,702 | $ | 1,365 | ||||||||||
Cash flows from operations |
(371 | ) | (279 | ) | ||||||||||
Capital expenditures |
198 | 230 | ||||||||||||
Dividends |
180 | 174 | ||||||||||||
Proceeds from stock issued under employee benefit plans |
(129 | ) | (140 | ) | ||||||||||
Purchases of treasury stock |
637 | 435 | ||||||||||||
Acquisitions and investments |
14 | 234 | C | |||||||||||
Other, including the effect of exchange rate changes |
(25 | ) | 61 | |||||||||||
Increase in net debt |
504 | 715 | ||||||||||||
Net debt, March 31 |
$ | 2,206 | $ | 2,080 | ||||||||||
March 31, 2011 | March 31, 2010 | |||||||||||||
Key statistics, March 31: |
GAAP | GAAP | Adjusted | |||||||||||
Days sales outstanding (DSO) |
56.0 | 58.5 | D | 53.1 | D | |||||||||
Inventory turns |
2.4 | 2.9 | E | 2.2 | E | |||||||||
Selected balance sheet information: |
March 31, 2011 | December 31, 2010 | ||||||||||||
Cash and equivalents |
$ | 2,168 | $ | 2,685 | ||||||||||
Accounts and other current receivables |
$ | 2,399 | $ | 2,265 | ||||||||||
Inventories |
$ | 2,517 | $ | 2,371 | ||||||||||
Accounts payable and accrued liabilities |
$ | 3,866 | $ | 4,017 | ||||||||||
A | Deferred income taxes in 2010 included a charge of $39 million to write off a deferred tax asset as a result of a change in the tax treatment of reimbursements under the Medicare Part D retiree prescription drug subsidy program. | |
B | Other cash flows from operations included planned contributions to the companys pension plan in the United States of $150 million and $300 million in 2011 and 2010, respectively. | |
C | Acquisitions and investments in 2010 related to the acquisition of ApaTech Limited, an orthobiologic products company based in the United Kingdom. | |
D | DSO in 2010 included the unfavorable impact of the COLLEAGUE infusion pump charge, which increased DSO by 5.4 days. | |
E | Inventory turns in 2010 included the favorable impact of the COLLEAGUE infusion pump charge, which increased total company inventory turns by 0.7. |
BAXTER PAGE 10
BAXTER INTERNATIONAL INC.
Net Sales
Periods Ending March 31, 2011 and 2010
(unaudited)
($ in millions)
Net Sales
Periods Ending March 31, 2011 and 2010
(unaudited)
($ in millions)
Q1 | Q1 | % Growth @ | % Growth @ | ||||||||||||||||
2011 | 2010 | Actual Rates | Constant Rates | ||||||||||||||||
BioScience |
|||||||||||||||||||
United States |
$ | 684 | $ | 610 | 12% | 12% | |||||||||||||
International |
724 | 752 | (4% | ) | (2% | ) | |||||||||||||
Total BioScience |
$ | 1,408 | $ | 1,362 | 3% | 4% | |||||||||||||
Medical Products 1 |
|||||||||||||||||||
United States 2 |
$ | 730 | $ | 674 | 8% | 8% | |||||||||||||
International |
1,138 | 1,092 | 4% | 3% | |||||||||||||||
Total Medical Products - Adjusted 2 |
$ | 1,868 | $ | 1,766 | 6% | 5% | |||||||||||||
COLLEAGUE infusion pump charge 2 |
(213 | ) | |||||||||||||||||
Total Medical Products - GAAP 2 |
$ | 1,868 | $ | 1,553 | 20% | 19% | |||||||||||||
Transfusion Therapies 3 |
|||||||||||||||||||
United States |
$ | 8 | $ | 9 | (11% | ) | (11% | ) | |||||||||||
International |
| 3 | (100% | ) | (100% | ) | |||||||||||||
Total Transfusion Therapies |
$ | 8 | $ | 12 | (33% | ) | (33% | ) | |||||||||||
Baxter International Inc. |
|||||||||||||||||||
United States 2 |
$ | 1,422 | $ | 1,293 | 10% | 10% | |||||||||||||
International |
1,862 | 1,847 | 1% | 1% | |||||||||||||||
Total Baxter - Adjusted 2 |
$ | 3,284 | $ | 3,140 | 5% | 5% | |||||||||||||
COLLEAGUE infusion pump charge 2 |
(213 | ) | |||||||||||||||||
Total Baxter - GAAP 2 |
$ | 3,284 | $ | 2,927 | 12% | 12% | |||||||||||||
1 | Medical Products represents the combination of the companys former Medication Delivery and Renal businesses into a single global business unit. Effective January 1, 2011, the company changed its segment presentation to reflect this new structure, and recast all prior periods presented to conform to the new presentation. | |
2 | GAAP net sales in 2010 included a charge of $213 million related to the recall of COLLEAGUE infusion pumps. Refer to page 14 for a reconciliation to GAAP measures. | |
3 | Represents revenues associated with manufacturing, distribution and other services provided by the company to the buyer of the Transfusion Therapies (TT) business after the February 2007 divestiture. |
BAXTER PAGE 11
BAXTER INTERNATIONAL INC.
GAAP Key Product Line Sales
Periods Ending March 31, 2011 and 2010
(unaudited)
($ in millions)
GAAP Key Product Line Sales
Periods Ending March 31, 2011 and 2010
(unaudited)
($ in millions)
GAAP | GAAP | % Growth @ | % Growth @ | ||||||||||||||||
Q1 2011 | Q1 2010 | Actual Rates | Constant Rates | ||||||||||||||||
BioScience |
|||||||||||||||||||
Recombinants |
$ | 512 | $ | 510 | 0% | 1% | |||||||||||||
Plasma Proteins |
308 | 292 | 5% | 8% | |||||||||||||||
Antibody Therapy |
374 | 322 | 16% | 18% | |||||||||||||||
Regenerative Medicine |
140 | 119 | 18% | 18% | |||||||||||||||
Other 1 |
74 | 119 | (38% | ) | (39% | ) | |||||||||||||
Total BioScience |
$ | 1,408 | $ | 1,362 | 3% | 4% | |||||||||||||
Medical Products 2 |
|||||||||||||||||||
Renal |
$ | 587 | $ | 584 | 1% | (1% | ) | ||||||||||||
Global Injectables |
517 | 451 | 15% | 14% | |||||||||||||||
IV Therapies |
428 | 391 | 9% | 10% | |||||||||||||||
Infusion Systems 3 |
211 | (4 | ) | N/M | N/M | ||||||||||||||
Anesthesia |
118 | 127 | (7% | ) | (7% | ) | |||||||||||||
Other |
7 | 4 | 75% | 17% | |||||||||||||||
Total Medical Products 3 |
$ | 1,868 | $ | 1,553 | 20% | 19% | |||||||||||||
Transfusion Therapies 4 |
$ | 8 | $ | 12 | (33% | ) | (33% | ) | |||||||||||
Total Baxter 3 |
$ | 3,284 | $ | 2,927 | 12% | 12% | |||||||||||||
1 | Principally includes vaccines and sales of plasma to third parties. | |
2 | Medical Products represents the combination of the companys former Medication Delivery and Renal businesses into a single global business unit. Effective January 1, 2011, the company changed its segment presentation to reflect this new structure, and recast all prior periods presented to conform to the new presentation. | |
3 | GAAP net sales in 2010 included a charge of $213 million related to the recall of COLLEAGUE infusion pumps. Refer to page 14 for a reconciliation to GAAP measures. | |
4 | Represents revenues associated with manufacturing, distribution and other services provided by the company to the buyer of the TT business after the February 2007 divestiture. |
BAXTER PAGE 12
BAXTER INTERNATIONAL INC.
Adjusted Key Product Line Sales
Periods Ending March 31, 2011 and 2010
(unaudited)
($ in millions)
Adjusted Key Product Line Sales
Periods Ending March 31, 2011 and 2010
(unaudited)
($ in millions)
Adjusted | Adjusted | ||||||||||||||||||
GAAP | Adjusted | % Growth @ | % Growth @ | ||||||||||||||||
Q1 2011 | 1 | Q1 2010 | Actual Rates | Constant Rates | |||||||||||||||
BioScience |
|||||||||||||||||||
Recombinants |
$ | 512 | $ | 510 | 0% | 1% | |||||||||||||
Plasma Proteins |
308 | 292 | 5% | 8% | |||||||||||||||
Antibody Therapy |
374 | 322 | 16% | 18% | |||||||||||||||
Regenerative Medicine |
140 | 119 | 18% | 18% | |||||||||||||||
Other 2 |
74 | 119 | (38% | ) | (39% | ) | |||||||||||||
Total BioScience |
$ | 1,408 | $ | 1,362 | 3% | 4% | |||||||||||||
Medical Products 3 |
|||||||||||||||||||
Renal |
$ | 587 | $ | 584 | 1% | (1% | ) | ||||||||||||
Global Injectables |
517 | 451 | 15% | 14% | |||||||||||||||
IV Therapies |
428 | 391 | 9% | 10% | |||||||||||||||
Infusion Systems - Adjusted 4 |
211 | 209 | 1% | 0% | |||||||||||||||
Anesthesia |
118 | 127 | (7% | ) | (7% | ) | |||||||||||||
Other |
7 | 4 | 75% | 17% | |||||||||||||||
Total Medical Products - Adjusted 4 |
$ | 1,868 | $ | 1,766 | 6% | 5% | |||||||||||||
Transfusion Therapies 5 |
$ | 8 | $ | 12 | (33% | ) | (33% | ) | |||||||||||
Total Baxter - Adjusted 4 |
$ | 3,284 | $ | 3,140 | 5% | 5% | |||||||||||||
1 | There were no adjustments included in the 2011 GAAP results. | |
2 | Principally includes vaccines and sales of plasma to third parties. | |
3 | Medical Products represents the combination of the companys former Medication Delivery and Renal businesses into a single global business unit. Effective January 1, 2011, the company changed its segment presentation to reflect this new structure, and recast all prior periods presented to conform to the new presentation. | |
4 | Adjusted net sales in 2010 excluded a charge of $213 million related to the recall of COLLEAGUE infusion pumps. Refer to page 14 for a reconciliation to GAAP measures. | |
5 | Represents revenues associated with manufacturing, distribution and other services provided by the company to the buyer of the TT business after the February 2007 divestiture. |
BAXTER PAGE 13
BAXTER INTERNATIONAL INC.
Adjusted Key Product Line Sales by U.S. and International
Periods Ending March 31, 2011 and 2010
(unaudited)
($ in millions)
Adjusted Key Product Line Sales by U.S. and International
Periods Ending March 31, 2011 and 2010
(unaudited)
($ in millions)
GAAP | Adjusted | Adjusted | |||||||||||||||||||||||||||||||||||||||
Q1 2011 1 | Q1 2010 | % Growth | |||||||||||||||||||||||||||||||||||||||
U.S. | International | Total | U.S. | International | Total | U.S. | International | Total | |||||||||||||||||||||||||||||||||
BioScience |
|||||||||||||||||||||||||||||||||||||||||
Recombinants |
$ | 231 | $ | 281 | $ | 512 | $ | 222 | $ | 288 | $ | 510 | 4% | (2% | ) | 0% | |||||||||||||||||||||||||
Plasma Proteins |
102 | 206 | 308 | 94 | 198 | 292 | 9% | 4% | 5% | ||||||||||||||||||||||||||||||||
Antibody Therapy |
265 | 109 | 374 | 223 | 99 | 322 | 19% | 10% | 16% | ||||||||||||||||||||||||||||||||
Regenerative Medicine |
78 | 62 | 140 | 62 | 57 | 119 | 26% | 9% | 18% | ||||||||||||||||||||||||||||||||
Other 2 |
8 | 66 | 74 | 9 | 110 | 119 | (11% | ) | (40% | ) | (38% | ) | |||||||||||||||||||||||||||||
Total BioScience |
$ | 684 | $ | 724 | $ | 1,408 | $ | 610 | $ | 752 | $ | 1,362 | 12% | (4% | ) | 3% | |||||||||||||||||||||||||
Medical Products 3 |
|||||||||||||||||||||||||||||||||||||||||
Renal |
$ | 96 | $ | 491 | $ | 587 | $ | 95 | $ | 489 | $ | 584 | 1% | 0% | 1% | ||||||||||||||||||||||||||
Global Injectables |
291 | 226 | 517 | 250 | 201 | 451 | 16% | 12% | 15% | ||||||||||||||||||||||||||||||||
IV Therapies |
148 | 280 | 428 | 124 | 267 | 391 | 19% | 5% | 9% | ||||||||||||||||||||||||||||||||
Infusion Systems - Adjusted 4 |
124 | 87 | 211 | 122 | 87 | 209 | 1% | 0% | 1% | ||||||||||||||||||||||||||||||||
Anesthesia |
70 | 48 | 118 | 82 | 45 | 127 | (15% | ) | 7% | (7% | ) | ||||||||||||||||||||||||||||||
Other |
1 | 6 | 7 | 1 | 3 | 4 | 0% | 100% | 75% | ||||||||||||||||||||||||||||||||
Total Medical Products - Adjusted 4 |
$ | 730 | $ | 1,138 | $ | 1,868 | $ | 674 | $ | 1,092 | $ | 1,766 | 8% | 4% | 6% | ||||||||||||||||||||||||||
Transfusion Therapies 5 |
$ | 8 | $ | | $ | 8 | $ | 9 | $ | 3 | $ | 12 | (11% | ) | (100% | ) | (33% | ) | |||||||||||||||||||||||
Total Baxter - Adjusted 4 |
$ | 1,422 | $ | 1,862 | $ | 3,284 | $ | 1,293 | $ | 1,847 | $ | 3,140 | 10% | 1% | 5% | ||||||||||||||||||||||||||
1 | There were no adjustments included in the 2011 GAAP results. | |
2 | Principally includes vaccines and sales of plasma to third parties. | |
3 | Medical Products represents the combination of the companys former Medication Delivery and Renal businesses into a single global business unit. Effective January 1, 2011, the company changed its segment presentation to reflect this new structure, and recast all prior periods presented to conform to the new presentation. | |
4 | Adjusted net sales in 2010 excluded a charge of $213 million related to the recall of COLLEAGUE infusion pumps. Refer to Page 14 for a reconciliation to GAAP measures. | |
5 | Represents revenues associated with manufacturing, distribution and other services provided by the company to the buyer of the TT business after the February 2007 divestiture. |
BAXTER PAGE 14
BAXTER INTERNATIONAL INC.
Reconciliation of GAAP to Non-GAAP Net Sales Measures
Periods Ending March 31, 2011 and 2010
(unaudited)
($ in millions)
Reconciliation of GAAP to Non-GAAP Net Sales Measures
Periods Ending March 31, 2011 and 2010
(unaudited)
($ in millions)
The companys GAAP net sales results for the period ended March 31, 2010 included a $213 million
charge related to the recall of COLLEAGUE infusion pumps, which impacted GAAP net sales as follows:
% Growth @ | % Growth @ | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Q1 2011 | Q1 2010 | Actual Rates | Constant Rates | ||||||||||||||||||||||||||||||||||||||||||||||||||
U.S. | International | Total | U.S. | International | Total | U.S. | International | Total | U.S. | International | Total | ||||||||||||||||||||||||||||||||||||||||||
Infusion Systems - GAAP |
$ | 124 | $ | 87 | $ | 211 | $ | (91 | ) | $ | 87 | $ | (4 | ) | N/M | 0% | N/M | N/M | |||||||||||||||||||||||||||||||||||
COLLEAGUE infusion pump charge |
213 | 213 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Infusion Systems - Adjusted |
$ | 124 | $ | 87 | $ | 211 | $ | 122 | $ | 87 | $ | 209 | 1% | 0% | 1% | 0% | |||||||||||||||||||||||||||||||||||||
Total Medical Products - GAAP |
$ | 730 | $ | 1,138 | $ | 1,868 | $ | 461 | $ | 1,092 | $ | 1,553 | 58% | 4% | 20% | 58% | 3% | 19% | |||||||||||||||||||||||||||||||||||
COLLEAGUE infusion pump charge |
213 | 213 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Total Medical Products - Adjusted |
$ | 730 | $ | 1,138 | $ | 1,868 | $ | 674 | $ | 1,092 | $ | 1,766 | 8% | 4% | 6% | 8% | 3% | 5% | |||||||||||||||||||||||||||||||||||
Total Baxter - GAAP |
$ | 1,422 | $ | 1,862 | $ | 3,284 | $ | 1,080 | $ | 1,847 | $ | 2,927 | 32% | 1% | 12% | 32% | 1% | 12% | |||||||||||||||||||||||||||||||||||
COLLEAGUE infusion pump charge |
213 | 213 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Total Baxter - Adjusted |
$ | 1,422 | $ | 1,862 | $ | 3,284 | $ | 1,293 | $ | 1,847 | $ | 3,140 | 10% | 1% | 5% | 10% | 1% | 5% | |||||||||||||||||||||||||||||||||||
For more information on the companys use of non-GAAP financial measures in this press release,
please see the companys Current Report on Form 8-K filed with the Securities and Exchange
Commission on the date of this press release.