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Here are 1-2 brief analogies for Baxter International (BAX):

• Abbott Laboratories for essential hospital and renal care products.
• Grainger for hospitals and clinics.

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• Renal Care Products: Devices and solutions for patients undergoing hemodialysis and peritoneal dialysis.
• Intravenous (IV) Solutions: A wide range of sterile solutions used for hydration, drug delivery, and nutrition in healthcare settings.
• Infusion Systems: Pumps and administration sets designed for the controlled delivery of fluids and medications to patients.
• Injectable Pharmaceuticals: Generic sterile injectable drugs for critical care, anti-infectives, analgesics, and other therapeutic areas.
• Biosurgery Products: Hemostats and sealants utilized to control bleeding and promote healing during surgical procedures.
• Clinical Nutrition Products: Parenteral nutrition therapies that provide essential nutrients to patients unable to receive adequate nutrition orally or enterally.

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Baxter International (BAX) primarily sells its products and services to other companies within the healthcare sector. Its major customers are healthcare providers, including hospitals, clinics, dialysis centers, and other alternate-site facilities.

A significant portion of Baxter's sales are facilitated through Group Purchasing Organizations (GPOs) and medical distributors, which act as crucial intermediaries in the healthcare supply chain by aggregating purchasing volumes and negotiating contracts on behalf of their member healthcare providers. While the ultimate end-users are healthcare facilities and patients, these GPOs represent major "customer companies" in terms of procurement and distribution channels for Baxter.

Key organizations that serve as major customers or significant purchasing channels for Baxter include:

• Premier, Inc. (Symbol: PINC): A leading healthcare improvement company, uniting an alliance of approximately 4,400 U.S. hospitals and health systems and more than 225,000 other providers and organizations.
• HealthTrust Performance Group (Parent Company: HCA Healthcare, Symbol: HCA): A leading GPO for healthcare providers, serving over 1,600 hospitals and health systems and 55,000 alternate care sites. HealthTrust is a wholly-owned subsidiary of HCA Healthcare.
• Vizient, Inc.: The nation's largest member-driven healthcare performance improvement company, serving more than half the nation’s acute care providers and an expanded membership base that includes academic medical centers, pediatric facilities, community hospitals, integrated health delivery networks, and non-acute health care providers. (Note: Vizient is a privately held company.)

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Andrew Hider President and Chief Executive Officer

Andrew Hider became President and Chief Executive Officer of Baxter International no later than September 3, 2025. Before joining Baxter, Hider led ATS, a factory automation solutions provider, for approximately eight years, during which time the company nearly doubled its adjusted revenue over five fiscal years while restructuring its portfolios. He previously served as president and CEO of Taylor Made Group and spent a decade at Danaher in various positions, including president of its Veeder-Root subsidiary.

Joel Grade Executive Vice President and Chief Financial Officer

Joel Grade was appointed Executive Vice President and Chief Financial Officer of Baxter International, effective October 18, 2023. Prior to Baxter, he had a 25-year career at Sysco, a global foodservice leader, where his roles included CFO, chief accounting officer, and executive vice president of corporate development. He began his career as a senior auditor at Ernst & Young LLP.

Jeanne Mason, Ph.D. Executive Vice President and Chief Human Resources Officer

Jeanne Mason, Ph.D., serves as Executive Vice President and Chief Human Resources Officer at Baxter International.

Tobi Karchmer, M.D., M.S. Senior Vice President and Chief Medical & Scientific Officer

Tobi Karchmer, M.D., M.S., is the Senior Vice President and Chief Medical & Scientific Officer at Baxter International.

James Borzi Executive Vice President, Chief Supply Chain Officer

James Borzi holds the position of Executive Vice President, Chief Supply Chain Officer at Baxter International.

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The key risks to Baxter International's business include:

1. Regulatory Scrutiny and Product Safety Issues with Novum IQ Infusion Pumps: Baxter is facing significant operational and regulatory risks related to its Novum IQ Large Volume Pump (LVP), including a class-action securities lawsuit alleging concealed safety defects, malfunctions, injuries, and deaths linked to the pumps. This issue has led to increased regulatory scrutiny from bodies like the FDA and raises material questions about product oversight and the credibility of past disclosures. Any further legal or remediation costs could limit financial flexibility and impact profitability.
2. Deteriorating Financial Performance and High Leverage: Baxter has reported GAAP net losses from continuing operations and a significant decline in gross margins, reflecting increased cost pressures and operational strain. The company's trailing twelve-month (TTM) Operating Margin of -2.95% is a substantial underperformance compared to its peers. While there are expectations for a return to profitability, revenue growth is projected to lag the broader U.S. market, and the company carries a high debt-to-equity ratio of 131.7%.
3. Intense Competition and Soft Demand in Key Segments: Baxter operates in a highly competitive healthcare market with major rivals such as Medtronic, Johnson & Johnson, Boston Scientific, and Fresenius Medical Care. The company has experienced weak constant currency revenue growth and softening demand in its core hospital and pharmaceutical segments, particularly in U.S. injectables, partly due to changing preferences in drug administration methods. Maintaining and growing market share against well-resourced competitors requires continuous innovation and adaptation to technological advancements.

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• Radical Miniaturization and Automation in Home Dialysis: Baxter is a global leader in renal care, particularly known for its peritoneal dialysis (PD) products and its growing presence in hemodialysis (HD). However, there is a clear emerging threat from companies developing significantly smaller, more automated, and user-friendly home dialysis systems. These innovations aim to make home HD more accessible and less burdensome for patients, directly competing with Baxter's established offerings in both PD and clinic-based HD. For instance, companies like Quanta Dialysis Technologies have launched compact home HD systems, while others like AWAK Technologies are developing wearable PD devices. These advancements represent a shift towards greater patient autonomy and convenience, potentially disrupting the market for traditional, larger dialysis equipment and clinic-dependent services by offering a superior patient experience.
• Advanced Regenerative Medicine and Therapeutics for Kidney Disease: Significant investments and scientific breakthroughs are occurring in the development of therapies that could prevent, delay, or potentially reverse kidney disease. This includes gene therapies, stem cell-based treatments, and other advanced biologics aimed at addressing the underlying causes of kidney failure or regenerating kidney function. While many of these are still in clinical development, the accelerating pace of innovation in biotechnology and regenerative medicine poses a long-term existential threat to the demand for traditional dialysis therapies. If successful, widespread adoption of such advanced therapeutics could reduce the patient population requiring dialysis, directly impacting Baxter's core renal care business.

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Baxter International operates in several key product and service areas, with varying addressable market sizes across different regions.

• Renal Care: The global dialysis market size was estimated at approximately USD 98.51 billion in 2024 and is projected to reach USD 181.16 billion by 2032. For North America, the dialysis market generated a revenue of USD 38.73 billion in 2023.
• Advanced Surgery: The global biosurgery market is projected to grow from USD 15.83 billion in 2025 to USD 21.59 billion by 2030. Additionally, the global anastomosis devices market, a component of advanced surgery, is expected to reach USD 4.26 billion by 2029 from USD 2.45 billion in 2022.
• Parenteral Nutrition: The global parenteral nutrition market size is estimated at USD 7.22 billion in 2024 and is anticipated to reach approximately USD 13.17 billion by 2034. In the U.S., the parenteral nutrition market size was USD 2.07 billion in 2024, with a projection to reach around USD 3.83 billion by 2034.
• Pharmaceuticals: null
• Infusion Therapies and Technologies: null
• Healthcare Systems and Technologies: null

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• New Product Launches and Pharmaceutical Growth: Baxter anticipates continued momentum from new product launches within its Pharmaceuticals segment, expecting sales growth of 6% to 7% in 2024. This growth is also fueled by increased demand for the company's Drug Compounding services.
• Expansion in Advanced Surgery: The Advanced Surgery business is a significant growth driver, exhibiting strong performance and international growth. This segment is expected to continue its positive trajectory, contributing to overall revenue expansion.
• Infusion Systems Portfolio and Innovation: Despite past challenges with the Novum IQ large volume infusion pump, Baxter continues to focus on its infusion system portfolio. The company has seen solid performance in this area, with the Novum IQ having a successful launch and the Spectrum IQ serving as an interim option during shipment holds. Continued innovation and resolution of shipment issues for advanced infusion pumps will be crucial for revenue growth.
• Strategic Transformation and Operational Efficiencies: Baxter is undergoing a strategic transformation, including a new operating model, which is contributing to solid operational performance. These initiatives, coupled with ongoing efforts to improve operational execution, are aimed at accelerating performance and driving increased value, which can indirectly support revenue growth through improved efficiency and resource allocation.
• Positive Pricing Momentum: The company has experienced positive pricing momentum, particularly from GPO (Group Purchasing Organization) contract renewals, which has contributed to its financial performance. This ability to command favorable pricing for its essential healthcare products is expected to continue to be a factor in revenue growth.

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Capital Allocation Decisions of Baxter International (BAX)

Share Repurchases

• Baxter International had approximately $1.30 billion of repurchase authority remaining under its share repurchase program as of December 31, 2024. This program does not have an expiration date.
• In 2022, Baxter repurchased 0.5 million shares through Rule 10b5-1 purchase plans.
• In 2020, Baxter repurchased 6.3 million shares through cash repurchases pursuant to a Rule 10b5-1 repurchase plan.

Share Issuance

• As of June 30, 2025, Baxter International Inc.'s Common Shares Outstanding amounted to 513.5 million USD.
• The average annual Common Shares Outstanding growth rate for Baxter International Inc. has been 1% over the past three years.

Outbound Investments

• In December 2021, Baxter completed the acquisition of Hillrom for a purchase price of $10.5 billion in cash, with an enterprise value of approximately $12.5 billion including assumed debt. This acquisition aimed to expand Baxter's connected care and medical innovation globally, and was expected to generate approximately $250 million of annual pre-tax cost synergies by the end of year three.
• Baxter acquired toSense, a company developing body-worn sensors for remote monitoring of chronic diseases, in April 2020.

Capital Expenditures

• Baxter International's capital expenditures for fiscal years ending December 2020 to 2024 averaged $472.3 million.
• Capital expenditures peaked in December 2021 at $607.1 million and hit a 5-year low in December 2022 of $352.1 million.
• Baxter's capital expenditures in 2020 focused on projects improving production efficiency and enhancing manufacturing capabilities to support geographic expansion and investments in growing markets.