Matt Mixkit

Matt Mixkit from Barclays PLC sought clarification on the ongoing IV demand issues, asking how to reconcile Baxter's reported slower demand with a generally strong surgical quarter for the broader medtech industry. He inquired if competitive factors, a shift in procedure mix to outpatient settings, or other elements could explain this disconnect.

Answer

EVP and CFO Joel Grade reinforced that Baxter's assessment, based on customer discussions and market insights, indicates continued fluid conservation by hospitals, citing external articles supporting this. He noted that similar past events took up to two years for recovery. Grade reiterated confidence in the medium-to-long-term strength of the IV Solutions business and emphasized active efforts to improve utilization and highlight clinical benefits, stressing that the issue is not product availability. He concluded that the guidance reflects Baxter's best expectations for this difficult-to-predict recovery.

Matt Mixkit asked for clarification on the disconnect between strong surgical procedure quarters reported by Medtech generally and Baxter's ongoing slower demand for IV Solutions, inquiring if competitive factors, a shift to outpatient procedures, or other reasons could reconcile this.

Answer

EVP and CFO Joel Grade reinforced that market insights and customer feedback, supported by external articles, indicate continued fluid conservation as a buying pattern. He acknowledged the recovery is slower than expected but expressed confidence in the long-term strength of the IV Solutions business, emphasizing product availability is not an issue and teams are actively working to improve utilization and highlight clinical benefits.