About Baxter International Inc

Baxter International Inc., through its subsidiaries, provides a broad portfolio of essential healthcare products, including acute and chronic dialysis therapies; sterile intravenous (IV) solutions; infusion systems and devices; parenteral nutrition therapies; inhaled anesthetics; generic injectable pharmaceuticals; surgical hemostat and sealant products, advanced surgical equipment; smart bed systems; patient monitoring and diagnostic technologies; and respiratory health devices. These products are used by hospitals, kidney dialysis centers, nursing homes, rehabilitation centers, ambulatory surgery centers, doctors’ offices and patients at home under physician supervision. The company’s global footprint and the critical nature of its products and services play a key role in expanding access to healthcare in emerging and developed countries. As of December 31, 2023, the company manufactured products in over 20 countries and sold them in over 100 countries. Segments The company operates through four segments: Medical Products and Therapies, Healthcare Systems and Technologies, Pharmaceuticals and Kidney Care. The Medical Products and Therapies segment includes sales of the company’s sterile IV solutions, infusion systems, administration sets, parenteral nutrition therapies and surgical hemostat, sealant and adhesion prevention products. The Healthcare Systems and Technologies segment includes sales of the company’s connected care solutions and collaboration tools, including smart bed systems, patient monitoring systems and diagnostic technologies, respiratory health devices and advanced equipment for the surgical space, including surgical video technologies, precision positioning devices and other accessories. The Pharmaceuticals segment includes sales of specialty injectable pharmaceuticals, inhaled anesthesia and drug compounding. The Kidney Care segment includes sales of chronic and acute dialysis therapies and services, including peritoneal dialysis (PD), hemodialysis (HD), continuous renal replacement therapies (CRRT) and other organ support therapies. Sale of BPS Business In 2023, the company completed the sale of its BPS business. Business Strategy The company’s business strategy focuses on driving sustainable growth and innovation aligned with its mission to save and sustain lives. The company’s diversified and broad portfolio of medical products that treat acute or chronic conditions and its global presence are core components of its strategy. The company’s innovation strategy, which encompasses both organic and inorganic initiatives, is focused on accelerating its sales growth through the introduction of new connected care and core therapies offerings. The market expansion component of its strategy includes expanding the company’s portfolio geographically, broadening its portfolio through channel expansion and increasing utilization of its products and therapies through market development activities. Sales and Distribution The company has its own direct sales force and also make sales to and through independent distributors, drug wholesalers acting as sales agents and specialty pharmacy or other alternate site providers. In the United States, third parties, such as Cardinal Health, Inc., warehouse and ship a significant portion of the company’s products through their distribution centers. These centers are generally stocked with adequate inventories to facilitate prompt customer service. Sales and distribution methods include frequent contact by sales and customer service representatives, automated communications via various electronic purchasing systems, circulation of catalogs and merchandising bulletins, direct-mail campaigns, trade publication presence and advertising. Sales are made and products are distributed on a direct basis or through independent distributors or sales agents in more than 100 countries as of December 31, 2023. International Operations The majority of the company’s revenues are generated outside of the United States and geographic expansion remains a key component of its strategy, particularly with respect to its Healthcare Systems and Technologies business. The company’s international presence includes operations in Europe, the Middle East, Africa, the Asia-Pacific, Latin America and Canada. Contractual Arrangements The company’s products are sold through contracts with customers, both within and outside the United States. Research and Development The company’s research and development expenditure included $667 million in 2023. Government Regulation The company’s operations and many of the products manufactured or sold by it are subject to extensive regulation by numerous government agencies, both within and outside the United States. The Food and Drug Administration (FDA) in the United States, the European Medicines Agency (EMA) in Europe, the China Food and Drug Administration (CFDA) in China, and other government agencies, inside and outside of the United States, administer requirements covering the testing, safety, effectiveness, manufacturing, labeling, promotion and advertising, distribution and post-market surveillance of the company’s products. The company must obtain specific approval from FDA and non-U.S. regulatory authorities before it can market and sell most of its products in a particular country. The company, along with its facilities, are subject to periodic inspections and possible administrative and legal actions by FDA and other regulatory agencies inside and outside the United States. In the United States, the company is subject to the oversight of FDA, Office of the Inspector General within the Department of Health and Human Services (OIG), the Center for Medicare/Medicaid Services (CMS), the Department of Justice (DOJ), Environmental Protection Agency, Department of Defense, and Customs and Border Protection in addition to others. The company supplies products and services to healthcare providers that are reimbursed by federally funded programs, such as Medicare. As a result, its activities are subject to regulation by CMS and enforcement by OIG and DOJ. In each jurisdiction outside the United States, the company’s activities are subject to regulation by government agencies, including the EMA in Europe, the China Food and Drug Administration (CFDA) in China, and other agencies in other jurisdictions. History Baxter International Inc. was founded in 1931. The company was incorporated under Delaware law in 1931.