Exhibit 99
[LOGO APPEARS HERE]
FOR IMMEDIATE RELEASE
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Media contacts: Deborah Spak, (847) 948-2349
Sally Benjamin Young, (847) 948-2304
Investor contacts: Neville Jeharajah, (847) 948-2875
Mary Kay Ladone, (847) 948-3371
BAXTER REVISES SALES GROWTH AND EARNINGS EXPECTATIONS FOR
FIRST QUARTER AND FULL YEAR 2003
Financial Outlook, Upcoming Product Launches and Collaborations
Will be Highlighted At Investor Conference Today
DEERFIELD, Ill., March 13, 2003 - Baxter International Inc. (NYSE:BAX)
today announced it has revised its sales growth and earnings per share
expectations for the first quarter and full year 2003.
Based on increased competition and pricing pressures in the plasma-protein
market, reductions in inventory by some providers resulting from increased
confidence in the availability of recombinant factor VIII products, and
devaluing currencies in Latin America and Turkey, Baxter has revised its
expectations for the first quarter and the full year 2003.
Specifically, Baxter now expects to achieve sales growth in the 5 to 7
percent range and earnings per diluted share of $0.36 to $0.38 in the first
quarter of 2003. For full-year 2003, Baxter expects to achieve sales growth from
continuing operations in the 8 to 12 percent range, earnings per share in the
$2.10 to $2.20 range, and to generate cash flow from operations of $1.3 billion
to $1.5 billion before capital expenditures.
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"Increased market competition in the plasma protein business and economic
instability in some overseas markets are impacting our business," said Harry M.
Jansen Kraemer, Jr., chairman and chief executive officer. "Despite our lowered
expectations, we anticipate continuing growth across all our businesses in 2003
and beyond. As we will outline in our conference today, we are introducing many
new products and developing innovative technologies that provide considerable
benefits for health-care providers and patients worldwide."
Executives from the company will elaborate on Baxter's financial outlook at
its investor conference for investors to be conducted today in Chicago and
webcast live via www.baxter.com.
During its conference, the company will summarize its comprehensive product
portfolio and unique mix of technology platforms that are expected to drive
long-term, sustainable competitive advantage. The company also will announce
several collaborations, product approvals and contracts, all of which leverage
Baxter's extensive manufacturing and product development expertise to
commercialize innovative technologies, introduce products into new markets, and
tap its specialty sales channels around the globe.
"Our unique combination of expertise in medical devices, pharmaceuticals
and biotechnology creates a tremendous competitive advantage for Baxter, and
makes us a valued partner to other companies," Kraemer added. "Building upon our
pioneering heritage and proven track record of success, we will sustain growth
by commercializing
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innovative technologies, launching new products and expanding into new markets,
and leveraging the strong customer relationships and sales channels we have
established throughout the world."
Launching New Products and Expanding into New Markets
Several new products are expected to contribute to Baxter's growth in 2003
and beyond. The most significant Baxter product approval anticipated in 2003 is
ADVATE, the first Factor VIII recombinant therapy to be clinically developed and
prepared without the addition of any human- or animal-derived raw materials.
ADVATE is currently under review in the United States, Europe and Canada, and is
expected to launch in the United States in 2003. ADVATE leverages the company's
innovative protein-development and manufacturing capability and further enhances
the most comprehensive portfolio of anti-hemophilia products from one company.
Commercializing Innovative Technologies
Baxter executives also will showcase the company's range of proprietary and
specialized drug formulation and delivery platforms that it offers to
traditional pharmaceutical as well as biotechnology companies, including
lyophilization, ready-to-use pre-filled syringes, vials, cartridges used in pen-
and auto-injectors, and intravenous bags. Baxter's unique drug delivery
technologies, including formulation technologies for insoluble drugs and
technologies for sustained release, coupled with its long-standing relationships
with pharmaceutical companies have yielded contracts with the 12 largest global
pharmaceutical companies and eight of the top ten biopharmaceutical companies.
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Based on Baxter's strengths in service and technology, 11 new compounds were
launched in 2002 and launches for up to an additional 20 compounds are
anticipated in the next two years.
Baxter also has signed two agreements that capitalize on its strengths in
commercializing innovative technologies. In an exclusive license with Cytokine
PharmaSciences, Inc., Baxter obtained the rights to Cytokine's anti-macrophage
migration inhibitory factor (MIF) antibody technology, which shows potential in
a wide spectrum of diseases, including asthma, severe infections and certain
cancers. And, tapping Baxter's cell-culture and manufacturing expertise, the
company signed a non-exclusive collaboration with Fremont, Calif.-based Protein
Design Labs, Inc. to humanize, develop and manufacture therapeutic monoclonal
antibodies on behalf of other companies.
Leveraging Strong Customer Relationships
With its global infrastructure and strong customer relationships, Baxter is
well-positioned to increase access to needed therapies. To that end, Baxter has
signed an exclusive agreement with Cangene Corporation to market WinRho SDF in
Europe, excluding Portugal, for the treatment of a critical blood clotting
disorder called Immune Thrombocytopenic Purpura (ITP).
About Baxter
Baxter International Inc., through its subsidiaries, assists health-care
professionals and their patients with treatment of complex medical conditions,
including cancer, hemophilia, immune disorders, kidney disease and trauma. The
company applies its
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expertise in medical devices, pharmaceuticals and biotechnology to make a
meaningful difference in patients' lives. Please visit the company's website at
www.baxter.com for more information about Baxter and to access a webcast of
today's investor conference.
This news release contains forward-looking statements that involve risks
and uncertainties, including technological advances in the medical field,
product demand and market acceptance, the effect of economic conditions, actions
of regulatory bodies, the impact of competitive products and pricing, foreign
currency exchange rates and other risks detailed in the company's filings with
the Securities and Exchange Commission. These forward-looking statements are
based on estimates and assumptions made by management of the company and are
believed to be reasonable, though are inherently uncertain and difficult to
predict. Actual results or experience could differ materially from the
forward-looking statements.
(Baxter and ADVATE are trademarks of Baxter International Inc. and its
affiliates. WinRho SDF is a trademark of Cangene Corporation.)
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