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Press release from Business Wire

Baxter Delivers Solid Financial Performance in Line with Guidance for Third Quarter 2012

<p class='bwalignc'> <b>Recent Highlights Reflect Company's Focus on New Growth Strategies</b> </p> <p class='bwalignc'> </p>

Thursday, October 18, 2012

Baxter Delivers Solid Financial Performance in Line with Guidance for Third Quarter 201207:00 EDT Thursday, October 18, 2012 DEERFIELD, Ill. (Business Wire) -- Baxter International Inc. (NYSE:BAX) today reported third quarter net income of $583 million, or $1.06 per diluted share. This compares to net income in the same period last year of $576 million, or $1.01 per diluted share, reflecting an increase of 5 percent on a per share basis. Baxter's third quarter 2012 financial results included an after-tax research and development charge of $45 million (or $0.08 per diluted share) associated with the company's recently announced European licensing agreement with Onconova Therapeutics, Inc. Financial results from the third quarter 2011 included an after-tax charge of $48 million (or $0.08 per diluted share). On an adjusted basis, excluding special items from both periods, Baxter's third quarter net income of $628 million increased 1 percent from $624 million reported in 2011. Adjusted earnings per diluted share of $1.14 rose 5 percent from $1.09 per diluted share last year and was in line with the guidance the company previously provided of $1.12 to $1.14 per diluted share. Worldwide sales totaled $3.5 billion, which were comparable to revenues generated in the third quarter last year. Excluding the impact of foreign currency, Baxter's sales advanced 5 percent. Sales within the United States of $1.5 billion accelerated 8 percent, while international sales of $2.0 billion declined 5 percent. Excluding the impact of foreign currency, international sales increased 2 percent as strength across many countries in Latin America and Asia Pacific offset continued softness in mature European markets. BioScience revenues of $1.5 billion were similar to sales in the prior-year period. Excluding the impact of foreign currency, BioScience revenues rose 5 percent, driven by double-digit growth in the U.S. across all key product categories. This was primarily the result of robust growth in demand for ADVATE [Antihemophilic Factor (Recombinant), Plasma/Albumin-Free Method], GAMMAGARD LIQUID [Immune Globulin Intravenous (Human)], and other plasma-based therapeutics including FEIBA, an inhibitor bypass therapy, and products to treat hereditary emphysema. In addition, the company benefited from the recent acquisition of Synovis Life Technologies, generating incremental sales in the quarter of approximately $20 million. The strong U.S. performance was partially offset by the impact of tenders in markets outside the U.S., largely related to the timing of purchases for certain plasma-based therapeutics. Medical Products sales of $2.0 billion were also in line with the prior-year period. Excluding the impact of foreign currency, Medical Products revenues increased 4 percent resulting from strong growth of injectable drugs, anesthesia products and nutritional therapies, and the benefit from the company's acquisition of Baxa Corporation, with incremental sales totaling more than $40 million. ''The solid underlying fundamentals of our businesses continue to be supported by the medically-necessary nature of our portfolio and therapies, growing global demand, and our broad global presence,'' said Robert L. Parkinson, Jr., chairman and chief executive officer. ''In addition, our company's strong financial position provides continued flexibility to invest in innovation, advance our new product pipeline, and pursue new business development opportunities to enhance future growth.'' Nine-Month Results For the first nine months of 2012, Baxter's net income increased 4 percent to $1.83 billion from $1.76 billion last year, while earnings per diluted share advanced 8 percent to $3.29 per diluted share from $3.06 per diluted share reported in the prior-year period. On an adjusted basis, excluding special items, Baxter reported net income for the nine-month period of $1.82 billion, comparable to the prior-year period. On a per share basis, adjusted earnings per diluted share of $3.27 increased 4 percent from $3.14 last year. Baxter's worldwide revenues totaled $10.4 billion and increased 1 percent (or 4 percent excluding the impact of foreign currency) compared to sales of $10.3 billion in the same period of 2011. The company's sales within the United States grew 6 percent in the year-to-date period, while international sales declined 2 percent during the period (and increased 3 percent excluding the impact of foreign currency). On a year-to-date basis, sales within the company's BioScience business totaled $4.6 billion, and increased 2 percent (or 5 percent excluding the impact of foreign currency). Medical Products sales grew 1 percent (or 4 percent excluding the impact of foreign currency) to $5.9 billion. Recent Highlights Baxter continues to focus on enhancing growth by optimizing its core business portfolio, advancing the company's new product pipeline, pursuing and accelerating the pace of business development initiatives, and capitalizing on the opportunity to develop new business models, which include public and private partnerships aimed at improving the quality of and access to care in both developed and emerging markets. Recent achievements reflect these priorities and include the following: Baxter launched its new 4000 IU dosage strength of ADVATE, providing the convenience of a single vial dosing opportunity for many adult patients, including those patients on a dosing schedule of every three days for prophylactic treatment with ADVATE. Baxter submitted a biologics license application (BLA) to the U.S. Food and Drug Administration (FDA) for approval of BAX 326, a recombinant factor IX (rFIX) protein being investigated for the treatment and prophylaxis of bleeding episodes for patients over 12 years of age with hemophilia B. Baxter completed enrollment in the first study of the company's home hemodialysis system. The study was designed to examine the performance and safety of the investigational device. The study was conducted in the United States and 24 patients were enrolled in the study during which 700 treatments were delivered to participants. Data will support the company's submission for CE Mark in 2013. The company began dosing patients with malignant solid tumors in a Phase I clinical trial of a monoclonal antibody, representing the company's efforts to extend its oncology portfolio with advanced biological research and development. The candidate is a fully-human, recombinant anti-MIF (anti-macrophage migration inhibitory factor) monoclonal antibody with potential to be a new therapeutic agent in treatment of cancer. Baxter entered into a European licensing agreement with Onconova Therapeutics, Inc. for rigosertib, a novel targeted anti-cancer compound currently in a Phase III study for the treatment of a group of rare hematologic malignancies called Myelodysplastic Syndromes and in a Phase II/III study for pancreatic cancer. Under the terms of an agreement with Momenta Pharmaceuticals, Baxter recently selected a third biosimilar for development, a monoclonal antibody for oncology designated as M511. This is in addition to the selection of M923 and M834 earlier this year, targeted for the treatment of autoimmune and other inflammatory disorders. Baxter and Momenta have the opportunity to develop up to six biosimilars through their partnership. The government of Brazil announced the selection of Baxter as an exclusive partner for recombinant FVIII hemophilia treatments. The company is working closely with Brazilian authorities to finalize the agreement and enhance access to critical treatments and provide recombinant therapies to patients. Outlook for Fourth Quarter and Full-Year 2012 For the fourth quarter of 2012, the company expects earnings of $1.24 to $1.27 per diluted share, before any special items, and sales growth of 5 to 6 percent excluding the impact of foreign currency (or 3 to 4 percent including the impact of foreign currency). Baxter has also tightened the range of its previously-issued guidance and now expects earnings, before special items, of $4.51 to $4.54 per diluted share for full-year 2012. For full-year 2012, Baxter continues to expect sales growth, excluding the impact of foreign currency, of 4 to 5 percent (or approximately 2 percent including the impact of foreign currency). In addition, the company expects cash flows from operations to exceed $3.0 billion. A webcast of Baxter's third quarter conference call for investors can be accessed live from a link on the company's website at www.baxter.com beginning at 7:30 a.m. CDT on October 18, 2012. Please visit Baxter's website for more information regarding this and future investor events and webcasts. 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 company's financial results, business development activities and other collaborations, R&D pipeline and outlook for 2012.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; product quality or patientsafety concerns leading to product recalls, withdrawals, launch delays, litigation, or declining sales; future actions of governmental authorities and other third parties as U.S. healthcare reform legislation and other austerity measures are implemented globally; additional legislation, regulation and other governmental pressures, which may affect pricing, taxation, reimbursement and rebate policies of government agencies and private payers or other elements of the company's business; product development risks, including satisfactory clinical performance; the company's ability to realize the anticipated benefits from its business development activities; 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; 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 preventing or restricting the company's manufacture, sale or use of affected products or technology; the impact of global economic conditions on Baxter and its customers and suppliers, including foreign governments in certain countries in which the company operates; foreign currency fluctuations; and other risks identified in the company's most recent filing on Form 10-K and other Securities and Exchange Commission 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 IncomeThree Months Ended September 30, 2012 and 2011(unaudited)(in millions, except per share and percentage data)     Three Months EndedSeptember 30,20122011Change   NET SALES$3,477 $3,479 0%   COST OF SALES1,667 1,708 (2%)               GROSS MARGIN1,810   1,771   2% % of Net Sales52.1%50.9%1.2 pts   MARKETING AND ADMINISTRATIVE EXPENSES743 787 (6%) % of Net Sales21.4%22.6%(1.2 pts)   RESEARCH AND DEVELOPMENT EXPENSES290 239 21% % of Net Sales8.3%6.9%1.4 pts   NET INTEREST EXPENSE25 14 79%   OTHER (INCOME) EXPENSE, NET(14)A 6 A N/M               PRE-TAX INCOME766   725   6%   INCOME TAX EXPENSE183   149   23% % of Pre-Tax Income23.9%20.6%3.3 pts   NET INCOME$583   $576   1%   BASIC EPS$1.07   $1.02   5% DILUTED EPS$1.06   $1.01   5%   WEIGHTED-AVERAGE NUMBER OF COMMON SHARES OUTSTANDINGBasic548 566 Diluted552   571       ADJUSTED PRE-TAX INCOME (excluding special items)$816B $804 B 1% ADJUSTED NET INCOME (excluding special items)$628B $624 B 1% ADJUSTED DILUTED EPS (excluding special items)$1.14B $1.09 B 5%   A Other (income) expense, net includes the net results attributable to noncontrolling interests, which had been reported separately in the prior year. The prior period consolidated statement of income presented above, the reconciliation of GAAP (generally accepted accounting principles) to non-GAAP measures presented on page 8, and the cash flows from operations schedule presented on page 11 have been conformed to the current period presentation.   B Refer to page 8 for a description of the adjustments and a reconciliation to GAAP measures.     BAXTER INTERNATIONAL INC.Note to Consolidated Statements of IncomeThree Months Ended September 30, 2012 and 2011Description of Adjustments and Reconciliation of GAAP to Non-GAAP Measures(unaudited)(in millions, except per share and percentage data)     The company's GAAP results for the three months ended September 30, 2012 and 2011 included special items which impacted the GAAP measures as follows:   Three Months EndedSeptember 30,20122011ChangeMarketing and Administrative Expenses$743 $787 (6%) AWP litigation and historical rebate and discount items 1-   (79)     Adjusted Marketing and Administrative Expenses$743   $708   5% % of Net Sales21.4%20.4%1.0 pt   Research and Development Expenses$290 $239 21% Business development item 2(50)   -     Adjusted Research and Development Expenses$240   $239   0% % of Net Sales6.9%6.9%0 pts   Pre-Tax Income$766 $725 6% Impact of special items 1, 250   79     Adjusted Pre-Tax Income$816   $804   1%   Income Tax Expense$183 $149 23% Impact of special items 1, 25   31     Adjusted Income Tax Expense$188   $180   4% % of Adjusted Pre-Tax Income23.0%22.4%0.6 pts   Net Income$583 $576 1% Impact of special items 1, 245   48     Adjusted Net Income$628   $624   1%   Diluted EPS$1.06 $1.01 5% Impact of special items 1, 20.08   0.08     Adjusted Diluted EPS$1.14   $1.09   5%   WEIGHTED-AVERAGE NUMBER OF COMMON SHARES OUTSTANDINGDiluted552   571       1   Marketing and administrative expenses in 2011 included a charge totaling $79 million ($48 million, or $0.08 per diluted share, on an after-tax basis) related to the resolution of litigation pertaining to average wholesale prices (AWP) and certain historical rebate and discount adjustments.   2 Research and development (R&D) expenses in 2012 included an R&D charge of $50 million ($45 million, or $0.08 per diluted share, on an after-tax basis) related to the company's licensing agreement with Onconova Therapeutics, Inc. (Onconova).   For more information on the company's use of non-GAAP financial measures in this press release, please see the company's Current Report on Form 8-K filed with the Securities and Exchange Commission on the date of this press release.     BAXTER INTERNATIONAL INC.Consolidated Statements of IncomeNine Months Ended September 30, 2012 and 2011(unaudited)(in millions, except per share and percentage data)     Nine Months EndedSeptember 30,20122011Change   NET SALES$10,437 $10,299 1%   COST OF SALES5,041 5,018 0%                 GROSS MARGIN   5,396   5,281   2% % of Net Sales51.7%51.3%0.4 pts   MARKETING AND ADMINISTRATIVE EXPENSES2,284 2,268 1% % of Net Sales21.9%22.0%(0.1 pts)   RESEARCH AND DEVELOPMENT EXPENSES865 692 25% % of Net Sales8.3%6.7%1.6 pts   NET INTEREST EXPENSE65 39 67%   OTHER (INCOME) EXPENSE, NET(133)A 44 A N/M                 PRE-TAX INCOME   2,315   2,238   3%   INCOME TAX EXPENSE   483   477   1% % of Pre-Tax Income20.9%21.3%(0.4 pts)   NET INCOME   $1,832   $1,761   4%   BASIC EPS   $3.32   $3.08   8% DILUTED EPS   $3.29   $3.06   8%   WEIGHTED-AVERAGE NUMBER OF COMMON SHARES OUTSTANDINGBasic552 571 Diluted   556   575       ADJUSTED PRE-TAX INCOME (excluding special items)$2,329B $2,317 B 1% ADJUSTED NET INCOME (excluding special items)$1,816B $1,809 B 0% ADJUSTED DILUTED EPS (excluding special items)$3.27B $3.14 B 4%   A   Other (income) expense, net includes the net results attributable to noncontrolling interests, which had been reported separately in the prior year. The prior period consolidated statement of income presented above, the reconciliation of GAAP to non-GAAP measures presented on page 10, and the cash flows from operations schedule presented on page 11 have been conformed to the current period presentation.   B Refer to page 10 for a description of the adjustments and a reconciliation to GAAP measures.     BAXTER INTERNATIONAL INC.Note to Consolidated Statements of IncomeNine Months Ended September 30, 2012 and 2011Description of Adjustments and Reconciliation of GAAP to Non-GAAP Measures(unaudited)(in millions, except per share and percentage data)     The company's GAAP results for the nine months ended September 30, 2012 and 2011 included special items which impacted the GAAP measures as follows:   Nine Months EndedSeptember 30,20122011ChangeGross Margin$5,396 $5,281 2% Reserve adjustments1(23) - Business development items 26   -     Adjusted Gross Margin$5,379   $5,281   2% % of Net Sales51.5%51.3%0.2 pts   Marketing and Administrative Expenses$2,284 $2,268 1% Business development items 2(9) - AWP litigation and historical rebate and discount items 3-   (79)     Adjusted Marketing and Administrative Expenses$2,275   $2,189   4% % of Net Sales21.8%21.3%0.5 pts   Research and Development Expenses$865 $692 25% Business development items 2(113)   -     Adjusted Research and Development Expenses$752   $692   9% % of Net Sales7.2%6.7%0.5 pts   Other (Income) Expense, Net$(133) $44 N/M Reserve adjustments 491   -     Adjusted Other (Income) Expense, Net$(42)   $44   N/M   Pre-Tax Income$2,315 $2,238 3% Impact of special items1, 2, 3, 414   79     Adjusted Pre-Tax Income$2,329   $2,317   1%   Income Tax Expense$483 $477 1% Impact of special items 1, 2, 3, 430   31     Adjusted Income Tax Expense$513   $508   1% % of Adjusted Pre-Tax Income22.0%21.9%0.1 pts   Net Income$1,832 $1,761 4% Impact of special items 1, 2, 3, 4(16)   48     Adjusted Net Income$1,816   $1,809   0%   Diluted EPS$3.29 $3.06 8% Impact of special items 1, 2, 3, 4(0.02)   0.08     Adjusted Diluted EPS$3.27   $3.14   4%   WEIGHTED-AVERAGE NUMBER OF COMMON SHARES OUTSTANDINGDiluted556   575       1   Cost of sales in 2012 included a net benefit of $23 million ($27 million, or $0.05 per diluted share, on an after-tax basis) primarily related to an adjustment to the COLLEAGUE infusion pump reserves as the company substantially completed its recall activities in the United States.   2 Cost of sales, marketing and administrative expenses and R&D expenses in 2012 included business development charges totaling $128 million ($102 million, or $0.19 per diluted share, on an after-tax basis) which principally related to R&D charges of $33 million associated with the company's global collaboration with Momenta Pharmaceuticals, Inc. (Momenta), $30 million associated with the company's global collaboration with Chatham Therapeutics, LLC (Chatham), and $50 million associated with the company's licensing agreement with Onconova.   3 Marketing and administrative expenses in 2011 included a charge totaling $79 million ($48 million, or $0.08 per diluted share, on an after-tax basis) related to the resolution of litigation pertaining to AWP and certain historical rebate and discount adjustments.   4 Other (income) expense, net in 2012 included a benefit of $91 million, or $0.16 per diluted share, consisting of gains of $53 million and $38 million for the reduction of certain contingent payment liabilities related to the prior acquisitions of Prism Pharmaceuticals, Inc. (Prism) and ApaTech Limited, respectively, for which there was no tax expense recognized.   For more information on the company's use of non-GAAP financial measures in this press release, please see the company's Current Report on Form 8-K filed with the Securities and Exchange Commission on the date of this press release.   BAXTER INTERNATIONAL INC.Cash Flows from Operations and Changes in Net Debt(unaudited)($ in millions)                         Cash Flows from Operations                 (Brackets denote cash outflows) Three Months EndedNine Months EndedSeptember 30,September 30,2012201120122011   Net income $583 $576 $1,832 $1,761 Adjustments Depreciation and amortization 179 176 534 503 Deferred income taxes 78 58 197 218 Stock compensation 34 33 97 94 Realized excess tax benefits from stock issued under employee benefit plans (6) (4) (14) (17) Other 37 87 (47) 126 Changes in balance sheet items Accounts and other current receivables, net (42) 55 72 (102) Inventories (36) (58) (136) (272) Accounts payable and accrued liabilities (53) 34 (282) (90) Infusion pump and business optimization payments (63) (111) (226) (258)   Other 36   76   134   (38) ACash flows from operations$747   $922   $2,161   $1,925                       Changes in Net Debt                 Increase (decrease) Three Months EndedNine Months EndedSeptember 30,September 30,2012201120122011   Net debt, beginning of period$2,961 $2,382 $2,290 $1,702   Cash flows from operations (747) (922) (2,161) (1,925) Capital expenditures 259 235 762 643 Dividends 184 176 558 534 Proceeds from stock issued under employee benefit plans (121) (97) (293) (388) Purchases of treasury stock 105 298 1,065 1,413 Acquisitions and investments 116B 27 585B 229 B Divestiture and other investing activities (12) - (86) (106) Other, including the effect of exchange rate changes 11   105   36   102   (Decrease) increase in net debt(205)   (178)   466   502     Net debt, September 30$2,756   $2,204   $2,756   $2,204                       Key statistics, September 30: Days sales outstanding 57.0 54.5 57.0 54.5 Inventory turns 2.3   2.5   2.3   2.5     A   Other cash flows from operations in the first quarter of 2011 included a planned contribution of $150 million to the company's pension plan in the United States.   B Acquisitions and investments in 2012 and 2011 included $100 million for the third quarter 2012 investment in Onconova preferred stock and execution of a licensing agreement, $90 million for the second quarter 2012 exercise of the company's option to acquire the remaining equity interest in Sigma International General Medical Apparatus, LLC, $30 million related to the second quarter 2012 collaboration with Chatham, $304 million for the first quarter 2012 acquisition of Synovis Life Technologies, Inc., $33 million for the first quarter 2012 payment to execute the Momenta collaboration, and $170 million for the second quarter 2011 acquisition of Prism.     BAXTER INTERNATIONAL INC.Net SalesPeriods Ending September 30, 2012 and 2011(unaudited)($ in millions)                                                                                       Q3Q3% Growth @% Growth @YTDYTD% Growth @% Growth @               2012   2011   Actual Rates   Constant Rates           2012   2011   Actual Rates   Constant Rates                                                     BioScience United States $790 $699 13% 13% $2,262 $2,070 9% 9% International           732   818   (11%)   (2%)           2,288   2,408   (5%)   1% Total BioScience           $1,522   $1,517   0%   5%           $4,550   $4,478   2%   5%                                                     Medical Products United States 1 $723 $704 3% 3% $2,222 $2,173 2% 2% International 1           1,232   1,258   (2%)   5%           3,665   3,648   0%   5% Total Medical Products 1           $1,955   $1,962   0%   4%           $5,887   $5,821   1%   4%                                                     Baxter International Inc. United States $1,513 $1,403 8% 8% $4,484 $4,243 6% 6% International           1,964   2,076   (5%)   2%           5,953   6,056   (2%)   3% Total Baxter           $3,477   $3,479   0%   5%           $10,437   $10,299   1%   4%   1   Includes revenues associated with manufacturing, distribution and other services provided by the company to the buyer of the Transfusion Therapies (TT) business after the February 2007 divestiture, which had previously been reported separately. The prior periods have been recast to conform to the current period presentation.     BAXTER INTERNATIONAL INC.Key Product Line SalesPeriods Ending September 30, 2012 and 2011(unaudited)($ in millions)                                                                                       Q3Q3% Growth @% Growth @YTDYTD% Growth @% Growth @               2012   2011   Actual Rates   Constant Rates           2012   2011   Actual Rates   Constant Rates                                                     BioScience Recombinants $555 $552 1% 5% $1,653 $1,634 1% 4% Antibody Therapy 404 380 6% 9% 1,168 1,135 3% 5% Plasma Proteins 337 372 (9%) (4%) 1,017 1,043 (2%) 1% Regenerative Medicine 165 143 15% 20% 493 430 15% 18% Other1           61   70   (13%)   0%           219   236   (7%)   0% Total BioScience           $1,522   $1,517   0%   5%           $4,550   $4,478   2%   5%                                                     Medical Products Renal $629 $646 (3%) 2% $1,852 $1,866 (1%) 2% Global Injectables 509 494 3% 7% 1,553 1,517 2% 4% IV Therapies 479 453 6% 12% 1,430 1,333 7% 11% Infusion Systems 186 222 (16%) (14%) 603 666 (9%) (8%) Anesthesia 135 129 5% 9% 405 390 4% 6% Other 2           17   18   (6%)   (11%)           44   49   (10%)   (12%) Total Medical Products 2           $1,955   $1,962   0%   4%           $5,887   $5,821   1%   4%                                                     Total Baxter           $3,477   $3,479   0%   5%           $10,437   $10,299   1%   4%   1   Principally includes vaccines and sales of plasma to third parties.   2 Includes revenues associated with manufacturing, distribution and other services provided by the company to the buyer of the TT business after the February 2007 divestiture, which had previously been reported separately. The prior periods have been recast to conform to the current period presentation.     BAXTER INTERNATIONAL INC.Key Product Line Sales by U.S. and InternationalThree-Month Periods Ending September 30, 2012 and 2011(unaudited)($ in millions)                                                                                                             Q3 2012           Q3 2011           % Growth               U.S.   International   Total           U.S.   International   Total           U.S.   International   TotalBioScience Recombinants $272 $283 $555 $246 $306 $552 11% (8%) 1% Antibody Therapy 298 106 404 267 113 380 12% (6%) 6% Plasma Proteins 120 217 337 104 268 372 15% (19%) (9%) Regenerative Medicine 97 68 165 78 65 143 24% 5% 15% Other 1           3   58   61           4   66   70           (25%)   (12%)   (13%) Total BioScience           $790   $732   $1,522           $699   $818   $1,517           13%   (11%)   0%                                                                 Medical Products Renal $100 $529 $629 $96 $550 $646 4% (4%) (3%) Global Injectables 249 260 509 237 257 494 5% 1% 3% IV Therapies 178 301 479 148 305 453 20% (1%) 6% Infusion Systems 104 82 186 133 89 222 (22%) (8%) (16%) Anesthesia 80 55 135 77 52 129 4% 6% 5% Other 2           12   5   17           13   5   18           (8%)   0%   (6%) Total Medical Products 2           $723   $1,232   $1,955           $704   $1,258   $1,962           3%   (2%)   0%                                                                 Total Baxter           $1,513   $1,964   $3,477           $1,403   $2,076   $3,479           8%   (5%)   0%   1   Principally includes vaccines and sales of plasma to third parties.   2 Includes revenues associated with manufacturing, distribution and other services provided by the company to the buyer of the TT business after the February 2007 divestiture, which had previously been reported separately. The prior period has been recast to conform to the current period presentation. Baxter International Inc.Media Contact:Deborah Spak, (224) 948-2349orInvestor Contacts:Mary Kay Ladone, (224) 948-3371Clare Trachtman, (224) 948-3085