Exhibit 99.1
BAXTER'S FOURTH QUARTER FINANCIAL RESULTS EXCEED EXPECTATIONS
COMPANY ACHIEVES RECORD SALES AND EARNINGS IN 2006 AND
PROVIDES POSITIVE FINANCIAL OUTLOOK FOR 2007
DEERFIELD, Ill., Jan. 25 /PRNewswire-FirstCall/ -- Baxter International
Inc. (NYSE: BAX) today reported financial results for the fourth quarter 2006
and provided its financial outlook for the first quarter and full-year 2007.
Summary of Fourth Quarter Results
Baxter reported income from continuing operations of $433 million in the
fourth quarter, an increase of 47 percent over the same period last year, and 14
percent on an adjusted basis. Earnings of $0.66 per diluted share exceeded
company guidance of $0.60 to $0.62 per diluted share, and represented an
increase of 43 percent on a GAAP basis and 10 percent on an adjusted basis. This
performance was a result of strong sales growth, gross margin expansion and
lower income tax expense.
Worldwide sales totaled $2.8 billion in the fourth quarter, an increase of
11 percent compared to the same period last year. Excluding a 2 percentage point
benefit from foreign exchange, sales grew 9 percent and exceeded the company's
organic sales growth guidance of 7 to 8 percent. Domestic sales increased 11
percent to $1.2 billion, and international sales also increased 11 percent to
$1.5 billion (an increase of 7 percent excluding a 4 percentage point benefit
from foreign exchange).
All of Baxter's businesses posted strong sales growth in the quarter. Sales
within Baxter's BioScience business totaled $1.2 billion, an increase of 18
percent from the same period last year. This growth was driven by record sales
of ADVATE, Antihemophilic Factor (Recombinant), Plasma/Albumin Free Method
(rAHF-PFM) for the treatment of hemophilia A, antibody therapy products,
including GAMMAGARD LIQUID(TM) [Immune Globulin Intravenous (Human)] (IVIG) 10%
Solution for the treatment of primary immunodeficiencies, specialty plasma
therapeutics and biosurgery products. Medication Delivery sales increased 7
percent to $1.0 billion, with increased sales of infusion systems, intraveneous
solutions and parenteral nutrition products, along with accelerated growth in
the company's drug delivery business. Renal sales increased 6 percent to $537
million reflecting accelerating gains in peritoneal dialysis patients globally.
"We are quite pleased with our strong fourth quarter results and are very
well positioned as we move into 2007," said Robert L. Parkinson, Jr., chairman
and chief executive officer. "Of particular importance was our ability to
significantly accelerate R&D spending, which is essential to support growth in
the coming years."
Summary of Full-Year 2006 Results
For full-year 2006, Baxter's worldwide sales increased 5 percent to
$10.4 billion. Domestic sales totaled $4.6 billion, an increase of 5 percent
from last year, while international sales increased 6 percent (with no impact
from foreign exchange), to $5.8 billion.
Baxter's reported income from continuing operations totaled $1.4 billion, or
$2.13 per diluted share, including special charges of $64 million ($0.10 per
diluted share). On an adjusted basis, excluding special charges, the company
reported 2006 income from continuing operations of $1.5 billion, or $2.23 per
diluted share, an increase of 16 percent over last year. Details of special
charges recorded in 2005 and 2006 are outlined in the financial schedules that
follow the text of this press release.
Cash flow from operations totaled $2.2 billion in 2006, and Baxter generated
$1.7 billion in free cash flow (cash flow from operations, less $526 million of
capital expenditures). Baxter's full-year cash flow performance exceeded the
company's guidance for 2006 of approximately $2.0 billion in cash flow from
operations, and free cash flow of $1.4 billion.
"We are very pleased with the quality of our earnings results and the
progress we have made financially throughout 2006," said Robert M. Davis,
Baxter's chief financial officer and treasurer. "We are particularly encouraged
with the strength of our cash flow, which is the best indication of our
continued focus on working capital management and value creation."
Increasing Investments in Research and Development
In 2006, the company accelerated its investment in research and development
by 15 percent to $614 million, the highest level of investment in the company's
75-year history.
"Rededication to science and technology will be an important driver of
Baxter's future growth and success," Parkinson continued. "Over the last two
years, our R&D organization has made great progress in applying disciplined
prioritization and project management processes that are critical to ensuring
increased productivity of our pipeline and higher returns for our shareholders."
Examples of specific advancements include:
-- Initiated a Phase II clinical trial utilizing adult stem cells to treat
chronic myocardial ischemia, a severe form of coronary artery disease.
This trial leverages Baxter's proprietary technology to select stem
cells for the procedure from the patient's own bloodstream.
-- Announced preliminary Phase I/II clinical results of Baxter's candidate
H5N1 pandemic influenza vaccine, suggesting the vaccine is well
tolerated in humans and may provide wider cross protection for a larger
number of people before and during a pandemic. This represented the
first clinical evaluation of a cell-based H5N1 vaccine, and is the first
clinical demonstration that a candidate H5N1 vaccine can induce
antibodies that neutralize widely divergent strains of H5N1 virus.
-- Supported Phase II clinical trials involving the use of intravenous
immunoglobulin (IVIG) to treat Alzheimer's disease, which are being
conducted by researchers at New York-Presbyterian/Weill Cornell Medical
Center in New York City.
-- Advanced the company's hemophilia portfolio through partnerships with
Nektar Therapeutics and Lipoxen Technologies, leveraging each company's
expertise to develop new therapies to reduce the frequency of injections
required to treat blood-clotting disorders.
-- Initiated a Phase II clinical trial involving the regeneration of bone
using a product co-developed by Baxter and Kuros Biosurgery AG. The
product is based on a combination of Baxter's TISSEEL fibrin sealant and
Kuros' proprietary biologics and associated binding technology.
-- Initiated the development of a recombinant form of von Willebrand factor
(VWF), a protein critical to the normal clotting of blood. Preclinical
results, presented at the American Society of Hematology meeting in
December, suggest that Baxter's recombinant VWF therapeutic protein has
similar properties to plasma-derived VWF.
-- Collaborated with Halozyme Therapeutics in the clinical and commercial
development of Hylenex, a liquid injectable formulation of recombinant
human hyaluronidase that can simplify the delivery of medications and
fluids through the use of subcutaneous infusion.
First Quarter and Full-Year 2007 Outlook
For full-year 2007, Baxter expects to achieve organic sales growth of 3 to 4
percent. This guidance reflects the divestiture of the Transfusion Therapies
business before the end of the first quarter and excludes sales of the company's
COLLEAGUE infusion pump in the United States, which may resume before the end of
2007. Excluding Transfusion Therapies revenues in both 2006 and 2007, Baxter
expects organic sales growth of approximately 7 percent, reflecting a continued
acceleration in sales growth compared to 2006.
The company expects earnings for full-year 2007 to be $2.47 to $2.53 per
diluted share, and to generate cash flow from operations of approximately $2.3
billion.
For the first quarter 2007, the company expects organic sales to grow 5 to 6
percent, and earnings of $0.54 to $0.56 per diluted share. This guidance
reflects the divestiture of the Transfusion Therapies business during the first
quarter and ongoing transition service revenue to support this business' ongoing
operations.
A webcast of Baxter's fourth quarter conference call for investors can be
accessed live from a link on the company's website at http://www.baxter.com
beginning at 7:30 a.m. CST on January 25, 2007. Please visit Baxter's website
for more information regarding this and future investor events and webcasts,
including investor presentations, a company-sponsored Investor Conference in
Chicago on March 14, and the company's Annual Meeting for shareholders in
Chicago on May 1.
Baxter International Inc., through its subsidiaries, assists healthcare
professionals and their patients with the treatment of complex medical
conditions, including hemophilia, immune disorders, cancer, infectious diseases,
kidney disease, trauma and other conditions. The company applies its expertise
in medical devices, pharmaceuticals and biotechnology to make a meaningful
difference in patients' lives.
This release includes forward-looking statements concerning the company's
financial results. 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 the FDA and foreign counterparts, that could 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; product development
risks; inventory reductions or fluctuations in buying patterns by wholesalers or
distributors; the impact of geographic and product mix on the company's sales;
the impact of competitive products and pricing, including generic competition,
drug reimportation and disruptive technologies; reimbursement policies of
government agencies and private payers; the availability of acceptable raw
materials and component supply; the ability to enforce company patents; patents
of third parties preventing or restricting the company's manufacture, sale or
use of affected products or technology; failure to satisfy closing conditions
related to the sale of the Transfusion Therapies business; and other risks
identified in the company's most recent filing on Form 10-Q and other SEC
filings, all of which are available on the company's website. The company does
not undertake to update its forward-looking statements. Financial schedules are
attached to this release and available on the company's website.
BAXTER INTERNATIONAL INC.
Consolidated Statements of Income
Three Months Ended December 31, 2006 and 2005
(unaudited)
(in millions, except per share and percentage data)
Three Months Ended
December 31,
----------------------------
2006 2005 Change
------------ ------------ ------------
CONTINUING OPERATIONS:
NET SALES $ 2,763 $ 2,491 11%
GROSS PROFIT 1,315 1,079 22%
% of Sales 47.6% 43.3% 4.3 pts
MARKETING AND ADMINISTRATIVE EXPENSES 612 520 18%
% of Sales 22.1% 20.9% 1.2 pts
RESEARCH AND DEVELOPMENT EXPENSES 181 134 35%
------------ ------------ ------------
OPERATING INCOME 522 425 23%
------------ ------------ ------------
% of Sales 18.9% 17.1% 1.8 pts
INTEREST, NET 1 23 (96)%
OTHER EXPENSE, NET 6 18 (67)%
------------ ------------ ------------
INCOME BEFORE INCOME TAXES 515 384 34%
INCOME TAX EXPENSE 82 90 (9)%
------------ ------------ ------------
INCOME FROM CONTINUING OPERATIONS $ 433 $ 294 47%
============ ============ ============
BASIC EPS FROM CONTINUING OPERATIONS $ 0.66 $ 0.47 40%
============ ============ ============
DILUTED EPS FROM CONTINUING OPERATIONS $ 0.66 $ 0.46 43%
============ ============ ============
WEIGHTED AVERAGE NUMBER OF COMMON SHARES
OUTSTANDING
Basic 653 624
Diluted 659 634
------------ ------------
ADJUSTED INCOME FROM CONTINUING OPERATIONS
(excluding certain items) $ 433 $ 379(1)
ADJUSTED DILUTED EPS FROM CONTINUING OPERATIONS
(excluding certain items) $ 0.66 $ 0.60(1)
(1) See page 8 for description of adjustments and reconciliation to GAAP
(generally accepted accounting principles) measures.
Note: Effective January 1, 2006, the company adopted SFAS No. 123-R using the
modified prospective method. After-tax stock-option expense for the fourth
quarter of 2006 was $15 million, or $0.02 per diluted share. In accordance with
the modified prospective adoption method, the company did not adjust its
historical consolidated financial statements to reflect the impact of
stock-option expense. Based on the pro forma application of SFAS No. 123 for the
calculation of stock-option expense prior to January 1, 2006 (as previously
disclosed in the company's consolidated financial statements), pro forma
after-tax stock-option expense in the fourth quarter of 2005 was $15 million, or
$0.02 per diluted share.
Non-GAAP Financial Measures: The non-GAAP financial measures contained in this
press release (earnings and per-share earnings, excluding certain items) adjust
for factors that are unusual or nonrecurring. Unusual or nonrecurring items can
be highly variable, difficult to predict, and of a size that may substantially
impact the company's reported operations for a period. Management believes that
non-GAAP financial measures can facilitate a fuller analysis of the company's
results of operations, particularly in evaluating performance period over
period. Management uses these non-GAAP financial measures internally in
financial planning, to monitor business unit performance, and in evaluating
management performance. Refer to the company's filing on Form 8-K of today's
date for additional information.
BAXTER INTERNATIONAL INC.
Note to Consolidated Statements of Income
Three Months Ended December 31, 2005
Description of Adjustments and Reconciliation of GAAP to Non-GAAP
(unaudited)
(in millions, except per share and percentage data)
The company's GAAP results for the three months ended December 31, 2005 included
certain charges related to infusion pumps, the exit of hemodialysis instrument
manufacturing, early debt retirement costs, and taxes on the repatriation of
foreign earnings, which impacted the GAAP results as follows:
Income Income from
Operating Tax Continuing Diluted
Income Expense Operations EPS
------------ ------------ ------------ ------------
GAAP $ 425 $ 90 $ 294 $ 0.46
6060 infusion pump charge (A) 49 15 34 0.06
Hemodialysis instruments
charge (A) 22 9 13 0.02
Early debt retirement costs (B) 17 7 10 0.02
Tax on repatriation of foreign
earnings - (28) 28 0.04
------------ ------------ ------------ ------------
Excluding specified items $ 513 $ 93 $ 379 $ 0.60
============ ============ ============ ============
Adjusted operating income
percentage 20.6%
(A) Included in computing the Gross Profit line in the accompanying
consolidated statement of income. Excluding these items, which totaled $71
million, adjusted gross profit is $1.15 billion and the adjusted gross
profit percentage is 46.2%.
(B) Included in the Other Expense, Net line in the accompanying consolidated
statement of income.
BAXTER INTERNATIONAL INC.
Consolidated Statements of Income
Twelve Months Ended December 31, 2006 and 2005
(unaudited)
(in millions, except per share and percentage data)
Twelve Months Ended
December 31,
------------------------------
2006 2005 Change
------------ ------------ ------------
CONTINUING OPERATIONS:
NET SALES $ 10,378 $ 9,849 5%
GROSS PROFIT 4,737 4,093 16%
% of Sales 45.6% 41.6% 4.0 pts
MARKETING AND ADMINISTRATIVE EXPENSES 2,282 2,030 12%
% of Sales 22.0% 20.6% 1.4 pts
RESEARCH AND DEVELOPMENT EXPENSES 614 533 15%
RESTRUCTURING ADJUSTMENTS - (109) (100)%
------------ ------------ ------------
OPERATING INCOME 1,841 1,639 12%
------------ ------------ ------------
% of Sales 17.7% 16.6% 1.1 pts
INTEREST, NET 34 118 (71)%
OTHER EXPENSE, NET 61 77 (21)%
------------ ------------ ------------
INCOME BEFORE INCOME TAXES 1,746 1,444 21%
INCOME TAX EXPENSE 348 486 (28)%
------------ ------------ ------------
INCOME FROM CONTINUING OPERATIONS $ 1,398 $ 958 46%
============ ============ ============
BASIC EPS FROM CONTINUING OPERATIONS $ 2.15 $ 1.54 40%
============ ============ ============
DILUTED EPS FROM CONTINUING OPERATIONS $ 2.13 $ 1.52 40%
============ ============ ============
WEIGHTED AVERAGE NUMBER OF COMMON SHARES
OUTSTANDING
Basic 651 622
Diluted 656 629
------------ ------------
ADJUSTED INCOME FROM CONTINUING
OPERATIONS (excluding certain items) $ 1,462(1) $ 1,208(1)
ADJUSTED DILUTED EPS FROM CONTINUING
OPERATIONS (excluding certain items) $ 2.23(1) $ 1.92(1)
(1) See page 10 for description of adjustments and reconciliation to GAAP
measures.
Note: Effective January 1, 2006, the company adopted SFAS No. 123-R using the
modified prospective method. After-tax stock-option expense for the year ended
December 31, 2006 was $53 million, or $0.08 per diluted share. In accordance
with the modified prospective adoption method, the company did not adjust its
historical consolidated financial statements to reflect the impact of
stock-option expense. Based on the pro forma application of SFAS No. 123 for the
calculation of stock-option expense prior to January 1, 2006 (as previously
disclosed in the company's consolidated financial statements), pro forma
after-tax stock-option expense for the year ended December 31, 2005 was $56
million, or $0.09 per diluted share.
Non-GAAP Financial Measures: The non-GAAP financial measures contained in this
press release (earnings and per-share earnings, excluding certain items) adjust
for factors that are unusual or nonrecurring. Unusual or nonrecurring items can
be highly variable, difficult to predict, and of a size that may substantially
impact the company's reported operations for a period. Management believes that
non-GAAP financial measures can facilitate a fuller analysis of the company's
results of operations, particularly in evaluating performance period over
period. Management uses these non-GAAP financial measures internally in
financial planning, to monitor business unit performance, and in evaluating
management performance. Refer to the company's filing on Form 8-K of today's
date for additional information.
BAXTER INTERNATIONAL INC.
Note to Consolidated Statements of Income
Twelve Months Ended December 31, 2006 and 2005
Description of Adjustments and Reconciliation of GAAP to Non-GAAP
(unaudited)
(in millions, except per share and percentage data)
2006 description of adjustment and reconciliation of GAAP to Non-GAAP
- ----------------------------------------------------------------------
The company's GAAP results for the twelve months ended December 31, 2006
included a charge related to COLLEAGUE infusion pumps, which impacted the GAAP
results as follows:
Income Income from
Operating Tax Continuing Diluted
Income Expense Operations EPS
------------ ------------ ------------ ------------
GAAP $ 1,841 $ 348 $ 1,398 $ 2.13
COLLEAGUE infusion pump
charge (A) 76 12 64 0.10
------------ ------------ ------------ ------------
Excluding specified items $ 1,917 $ 360 $ 1,462 $ 2.23
============ ============ ============ ============
Adjusted operating income
percentage 18.5%
(A) Included in the Gross Profit line in the accompanying consolidated
statement of income. Excluding this item, adjusted gross profit is $4.81
billion and the adjusted gross profit percentage is 46.4%.
2005 description of adjustments and reconciliation of GAAP to Non-GAAP
- ----------------------------------------------------------------------
The company's GAAP results for the twelve months ended December 31, 2005
included certain charges related to infusion pumps, the exit of hemodialysis
instrument manufacturing, early debt retirement costs, taxes on the repatriation
of foreign earnings, as well as restructuring adjustments, which impacted the
GAAP results as follows:
Income
Income from
Operating Tax Continuing Diluted
Income Expense Operations EPS
---------- ---------- ---------- ----------
GAAP $ 1,639 $ 486 $ 958 $ 1.52
6060 infusion pump charge (A) 49 15 34 0.06
COLLEAGUE infusion pump
charge (A) 77 12 65 0.10
Hemodialysis instruments
charge (A) 50 17 33 0.05
Early debt retirement costs (B) 17 7 10 0.02
Tax on repatriation of foreign
earnings - (191) 191 0.30
Restructuring adjustments (C) (109) (26) (83) (0.13)
---------- ---------- ---------- ----------
Excluding specified items $ 1,723 $ 320 $ 1,208 $ 1.92
========== ========== ========== ==========
Adjusted operating income
percentage 17.5%
(A) Included in computing the Gross Profit line in the accompanying
consolidated statement of income. Excluding these items, which totaled $176
million, adjusted gross profit is $4.27 billion and the adjusted gross
profit percentage is 43.3%.
(B) Included in the Other Expense, Net line in the accompanying consolidated
statement of income.
(C) Included in the Restructuring Adjustments line in the accompanying
consolidated statement of income.
Baxter International Inc.
Condensed Consolidated Balance Sheets
(unaudited)
($ in millions)
December 31, December 31,
2006 2005
------------ ------------
ASSETS
Cash and equivalents $ 2,485 $ 841
Receivables 1,838 1,766
Inventories 2,066 1,925
Other current assets 581 584
------------ ------------
Total current assets 6,970 5,116
------------ ------------
Property, plant and equipment, net 4,229 4,144
Other long-term assets 3,487 3,467
------------ ------------
Total assets $ 14,686 $ 12,727
============ ============
LIABILITIES AND SHAREHOLDERS' EQUITY
Short-term debt $ 234 $ 924
Other current liabilities 3,376 3,241
Long-term debt 2,567 2,414
Other long-term liabilities 2,237 1,849
Shareholders' equity 6,272 4,299
------------ ------------
Total liabilities and shareholders' equity $ 14,686 $ 12,727
============ ============
BAXTER INTERNATIONAL INC.
Cash Flows from Operations and Changes in Net Debt
(unaudited)
($ in millions)
Cash Flows from Operations
- ------------------------------
(Brackets denote cash outflows)
Three Months Twelve Months
Ended Ended
December 31, December 31,
----------------------- -----------------------
2006 2005 2006 2005
---------- ---------- ---------- ----------
Net income $ 431 $ 292 $ 1,397 $ 956
Adjustments
Depreciation and amortization 144 144 575 580
Deferred income taxes (68) 3 8 201
Stock compensation 26 2 94 9
Infusion pump and hemodialysis
instrument charges - 71 76 176
Restructuring adjustments - - - (109)
Other 6 2 34 48
Changes in balance sheet items
Receivables (49) 45 (16) 178
Inventories 73 20 (35) 88
Accounts payable and accrued
liabilities 160 (38) 1 (325)
Restructuring payments (8) (22) (42) (117)
Other 47 (283) 91 (135)
---------- ---------- ---------- ----------
Cash flows from operations $ 762 $ 236 $ 2,183 $ 1,550
========== ========== ========== ==========
Changes in Net Debt
- -------------------
Increase (decrease)
Three Months Twelve Months
Ended Ended
December 31, December 31,
----------------------- -----------------------
2006 2005 2006 2005
---------- ---------- ---------- ----------
Net debt, beginning of period $ 741 $ 2,650 $ 2,497 $ 3,185
Cash flows from operations (762) (236) (2,183) (1,550)
Capital expenditures 190 165 526 444
Dividends - - 363 359
Acquisitions, net 2 33 5 47
Issuances of common stock - - (1,249) -
Purchases of treasury stock 258 - 737 -
Other, including the effect of
exchange rate changes (113) (115) (380) 12
---------- ---------- ---------- ----------
Decrease in net debt (425) (153) (2,181) (688)
---------- ---------- ---------- ----------
Net debt, December 31 $ 316 $ 2,497 $ 316 $ 2,497
========== ========== ========== ==========
Key statistics, December 31:
Days sales outstanding 52.9 55.1 52.9 55.1
Inventory turns 2.7 2.6 2.7 2.6
Net-debt-to-capital ratio (A) 4.8% 36.7% 4.8% 36.7%
---------- ---------- ---------- ----------
(A) The decrease in the debt-to-capital ratio from December 31, 2005 to
December 31, 2006 primarily related to the settlement of the company's
equity units. In February 2006, the purchase contracts included in the
company's equity units matured, and the company issued approximately 35
million common shares in exchange for $1.25 billion. Management used a
portion of the cash proceeds to pay down maturing debt. Refer to the
company's Form 10-K for the year ended December 31, 2005 for additional
information regarding the equity units.
Baxter International Inc.
Net Sales from Continuing Operations
Periods Ending December 31, 2006 and 2005
(unaudited)
($ in millions)
% Growth % Growth
@ @
Q4 Q4 Actual Constant
2006 2005 Rates Rates
---------- ---------- ---------- ----------
BioScience
United States $ 587 $ 479 23% 23%
International 600 531 13% 7%
Total $ 1,187 $ 1,010 18% 14%
---------- ---------- ---------- ----------
Medication Delivery
United States $ 549 $ 532 3% 3%
International 490 440 11% 8%
Total $ 1,039 $ 972 7% 5%
---------- ---------- ---------- ----------
Renal
United States $ 95 $ 96 (1)% (1)%
International 442 413 7% 5%
Total $ 537 $ 509 6% 4%
---------- ---------- ---------- ----------
Baxter International Inc.
United States $ 1,231 $ 1,107 11% 11%
International 1,532 1,384 11% 7%
Total $ 2,763 $ 2,491 11% 9%
---------- ---------- ---------- ----------
% Growth % Growth
@ @
YTD YTD Actual Constant
2006 2005 Rates Rates
---------- ---------- ---------- ----------
BioScience
United States $ 2,127 $ 1,764 21% 21%
International 2,269 2,088 9% 9%
Total $ 4,396 $ 3,852 14% 14%
---------- ---------- ---------- ----------
Medication Delivery
United States $ 2,081 $ 2,234 (7)% (7)%
International 1,836 1,756 5% 5%
Total $ 3,917 $ 3,990 (2)% (2)%
---------- ---------- ---------- ----------
Renal
United States $ 381 $ 385 (1)% (1)%
International 1,684 1,622 4% 4%
Total $ 2,065 $ 2,007 3% 3%
---------- ---------- ---------- ----------
Baxter International Inc.
United States $ 4,589 $ 4,383 5% 5%
International 5,789 5,466 6% 6%
Total $ 10,378 $ 9,849 5% 5%
---------- ---------- ---------- ----------
Baxter International Inc.
Key Product Line Sales
Periods Ending December 31, 2006 and 2005
(unaudited)
($ in millions)
% Growth % Growth
@ @
Q4 Q4 Actual Constant
2006 2005(1) Rates Rates
---------- ---------- ---------- ----------
BioScience
Recombinants $ 452 $ 394 15% 11%
Plasma Proteins (2) 262 193 36% 33%
Antibody Therapy 207 147 41% 38%
BioSurgery (3) 78 67 16% 13%
Transfusion Therapies 145 140 4% 2%
Other (4) 43 69 (38)% (42)%
---------- ---------- ---------- ----------
Total BioScience $ 1,187 $ 1,010 18% 14%
---------- ---------- ---------- ----------
Medication Delivery
IV Therapies (5) $ 341 $ 316 8% 6%
Drug Delivery 219 196 12% 11%
Infusion Systems 221 194 14% 12%
Anesthesia and Injectable Drugs 247 249 (1)% (2)%
Other (6) 11 17 (35)% (29)%
---------- ---------- ---------- ----------
Total Medication Delivery $ 1,039 $ 972 7% 5%
---------- ---------- ---------- ----------
Renal
PD Therapy $ 429 $ 400 7% 6%
HD Therapy 108 109 (1)% (2)%
---------- ---------- ---------- ----------
Total Renal (7) $ 537 $ 509 6% 4%
---------- ---------- ---------- ----------
TOTAL BAXTER $ 2,763 $ 2,491 11% 9%
========== ========== ========== ==========
% Growth % Growth
@ @
YTD YTD Actual Constant
2006 2005(1) Rates Rates
-------- -------- -------- --------
BioScience
Recombinants $ 1,696 $ 1,527 11% 11%
Plasma Proteins (2) 881 709 24% 24%
Antibody Therapy 785 452 74% 73%
BioSurgery (3) 298 266 12% 12%
Transfusion Therapies 516 547 (6)% (5)%
Other (4) 220 351 (37)% (37)%
-------- -------- -------- --------
Total BioScience $ 4,396 $ 3,852 14% 14%
-------- -------- -------- --------
Medication Delivery
IV Therapies (5) $ 1,285 $ 1,225 5% 5%
Drug Delivery 832 818 2% 1%
Infusion Systems 817 853 (4)% (5)%
Anesthesia and Injectable Drugs 938 1,021 (8)% (8)%
Other (6) 45 73 (38)% (36)%
-------- -------- -------- --------
Total Medication Delivery $ 3,917 $ 3,990 (2)% (2)%
-------- -------- -------- --------
Renal
PD Therapy $ 1,634 $ 1,553 5% 6%
HD Therapy 431 454 (5)% (5)%
-------- -------- -------- --------
Total Renal (7) $ 2,065 $ 2,007 3% 3%
-------- -------- -------- --------
TOTAL BAXTER $ 10,378 $ 9,849 5% 5%
======== ======== ======== ========
(1) Prior year sales data has been reclassified to reflect the changes
that are described in notes 2, 3, 4 and 7 below.
(2) Includes plasma-derived hemophilia (FVII, FVIII, FIX and FEIBA),
albumin, and certain other plasma-based products. Sales of Tisseel,
sales of plasma to third parties, and contract manufacturing revenues
were previously reported in Plasma Proteins, and are now reported in
other product lines, as detailed below.
(3) Includes sales of Tisseel and FloSeal/CoSeal, which were previously
reported in Plasma Proteins and Other, respectively.
(4) Principally includes vaccines and sales of plasma to third parties.
The sales of plasma to third parties were previously reported in
Plasma Proteins. The prior year sales include contract manufacturing
revenues.
(5) Principally includes intravenous solutions and nutritional products.
(6) Principally includes other hospital-distributed products.
(7) Sales of pharmaceutical and certain other products, which were
previously reported in Other, are now reported in PD Therapy.
Baxter International Inc.
Key Product Line Sales -- US/International
Periods Ending December 31, 2006 and 2005
(unaudited)
($ in millions)
Q4 2006 Q4 2005 (1)
------------------------------ ------------------------------
Inter- Inter-
US national Total US national Total
-------- -------- -------- -------- -------- --------
BioScience
Recombinants $ 191 $ 261 $ 452 $ 168 $ 226 $ 394
Plasma Proteins (2) 102 160 262 72 121 193
Antibody Therapy 158 49 207 103 44 147
BioSurgery (3) 43 35 78 39 28 67
Transfusion Therapies 78 67 145 67 73 140
Other (4) 15 28 43 30 39 69
-------- -------- -------- -------- -------- --------
Total BioScience $ 587 $ 600 $ 1,187 $ 479 $ 531 $ 1,010
-------- -------- -------- -------- -------- --------
Medication Delivery
IV Therapies (5) $ 113 $ 228 $ 341 $ 109 $ 207 $ 316
Drug Delivery 144 75 219 128 68 196
Infusion Systems 132 89 221 123 71 194
Anesthesia and Injectable
Drugs 154 93 247 166 83 249
Other (6) 6 5 11 6 11 17
-------- -------- -------- -------- -------- --------
Total Medication
Delivery $ 549 $ 490 $ 1,039 $ 532 $ 440 $ 972
-------- -------- -------- -------- -------- --------
Renal
PD Therapy $ 67 $ 362 $ 429 $ 65 $ 335 $ 400
HD Therapy 28 80 108 31 78 109
-------- -------- -------- -------- -------- --------
Total Renal (7) $ 95 $ 442 $ 537 $ 96 $ 413 $ 509
-------- -------- -------- -------- -------- --------
TOTAL BAXTER $ 1,231 $ 1,532 $ 2,763 $ 1,107 $ 1,384 $ 2,491
======== ======== ======== ======== ======== ========
% Growth
----------------------------------
Inter-
US national Total
-------- -------- --------
BioScience
Recombinants 14% 15% 15%
Plasma Proteins (2) 42% 32% 36%
Antibody Therapy 53% 11% 41%
BioSurgery (3) 10% 25% 16%
Transfusion Therapies 16% (8)% 4%
Other (4) (50)% (28)% (38)%
-------- -------- --------
Total BioScience 23% 13% 18%
-------- -------- --------
Medication Delivery
IV Therapies (5) 4% 10% 8%
Drug Delivery 13% 10% 12%
Infusion Systems 7% 25% 14%
Anesthesia and Injectable Drugs (7)% 12% (1)%
Other (6) - (55)% (35)%
-------- -------- --------
Total Medication Delivery 3% 11% 7%
-------- -------- --------
Renal
PD Therapy 3% 8% 7%
HD Therapy (10%) 3% (1)%
-------- -------- --------
Total Renal (7) (1%) 7% 6%
-------- -------- --------
TOTAL BAXTER 11% 11% 11%
======== ======== ========
(1) Prior year sales data has been reclassified to reflect the changes
that are described in notes 2, 3, 4 and 7 below.
(2) Includes plasma-derived hemophilia (FVII, FVIII, FIX and FEIBA),
albumin, and certain other plasma-based products. Sales of Tisseel,
sales of plasma to third parties, and contract manufacturing revenues
were previously reported in Plasma Proteins, and are now reported in
other product lines, as detailed below.
(3) Includes sales of Tisseel and FloSeal/CoSeal, which were previously
reported in Plasma Proteins and Other, respectively.
(4) Principally includes vaccines and sales of plasma to third parties.
The sales of plasma to third parties were previously reported in
Plasma Proteins. The prior year sales include contract manufacturing
revenues.
(5) Principally includes intravenous solutions and nutritional products.
(6) Principally includes other hospital-distributed products.
(7) Sales of pharmaceutical and certain other products, which were
previously reported in Other, are now reported in PD Therapy.
SOURCE Baxter International Inc.
-0- 01/25/2007
/CONTACT: Media Contacts, Deborah Spak, +1-847-948-2349, or Tom Kline,
+1-847-948-2251, or Investor Contacts, Mary Kay Ladone, +1-847-948-3371, or
Clare Trachtman, +1-847-948-3085, all of Baxter International Inc./
/First Call Analyst: /
/FCMN Contact: halljo@baxter.com /
/Web site: http://www.baxter.com /
(BAX)