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Baxter International Inc. is a global medical technology company that provides a wide range of healthcare solutions across more than 100 countries . The company operates through four main segments, offering products and services that include sterile IV solutions, connected care systems, specialty pharmaceuticals, and dialysis therapies . Baxter's diverse product portfolio and international presence enable it to address various healthcare needs worldwide .
- Kidney Care - Provides chronic and acute dialysis therapies, including peritoneal dialysis and hemodialysis .
- Medical Products and Therapies - Offers sterile IV solutions, infusion systems, parenteral nutrition therapies, and surgical hemostat products .
- Healthcare Systems and Technologies - Delivers connected care solutions, smart bed systems, patient monitoring systems, and advanced surgical equipment .
- Pharmaceuticals - Focuses on specialty injectable pharmaceuticals, inhaled anesthesia, and drug compounding .
| Name | Position | External Roles | Short Bio | |
|---|---|---|---|---|
Brent Shafer ExecutiveBoard | Interim CEO and Chair of the Board | Director at Tactile Systems Technology, Inc. (TCMD); Director at Veracyte, Inc. (VCYT) | Former Chair and CEO of Cerner Corporation; held senior roles at Philips Healthcare, Hillrom, GE Medical Systems, and Johnson & Johnson. Appointed Interim CEO and Chair following Jos\u00e9 E. Almeida's retirement. | View Report → |
Alok Sonig Executive | EVP and Group President, Pharmaceuticals | Advisory Board Member at American University Kogod School of Business; Advisory Board Member at Sentry Sciences, Inc.; Board Member of Southern Asian Pharmaceutical Council | Former U.S. CEO and Global Head of R&D at Lupin, Inc.; joined Baxter in 2022 and leads the Pharmaceuticals segment. | |
David S. Rosenbloom Executive | EVP and General Counsel | Board Member of Digestive Health Foundation | Joined Baxter in 2022; previously a partner at McDermott Will & Emery and Global Head of Litigation Practice Group. | |
Heather Knight Executive | EVP and COO | Director at Waters Corporation; Board Member at Chanell Medsystems; Board Member at Technovation | Former VP/GM at Medtronic; joined Baxter in 2019 and has held multiple leadership roles, including Group President of Medical Products & Therapies. Appointed COO in 2025. | |
Jeanne K. Mason Executive | EVP and Chief Human Resources Officer | Board Member of Family Service of Lake County; Executive Advisory Council Member for NAAAHR Chicago Chapter | Joined Baxter in 2006; previously held HR leadership roles at GE Insurance Solutions and General Electric. | |
Joel T. Grade Executive | EVP, CFO, and Interim Chief Accounting Officer | Member of Northwestern University-Kellogg School of Business Financial Network Advisory Board; Dean\u2019s External Advisory Board of the University of Wisconsin School of Business | Former EVP and CFO at Sysco Corporation; joined Baxter in 2023 and appointed Interim Chief Accounting Officer in 2024. | |
Reazur Rasul Executive | EVP and Group President, Healthcare Systems & Technologies | None | Joined Baxter in 2017; previously led Acute Therapies and Medication Delivery businesses. Formerly worked at Hewlett Packard Enterprise and GE Healthcare. | |
Cathy R. Smith Board | Director | CFO of Nordstrom, Inc.; Director at PPG Industries, Inc. | Former CFO of Target Corporation, Bright Health, and Express Scripts; joined Baxter's Board in 2017 and chairs the Nominating, Corporate Governance & Public Policy Committee. | |
Jeffrey A. Craig Board | Director | Chair of the Board at Hyliion Holdings Corp.; Chair of Audit Committee at Arcosa Inc. | Former CEO and President of Meritor, Inc.; joined Baxter's Board in 2024 and serves on the Audit Committee. | |
Nancy M. Schlichting Board | Director | Director at Walgreens Boots Alliance and Encompass Health, Inc.; Trustee at Duke University and Kresge Foundation | Former CEO of Henry Ford Health System; recognized for transformational leadership and quality initiatives. | |
Stephen H. Rusckowski Board | Director | Director at Tenet Healthcare Corporation; Director at Qiagen Inc. | Former Chair, President, and CEO of Quest Diagnostics; previously CEO of Philips Healthcare. | |
William A. Ampofo II Board | Director | Chair of Supply Chain Operations Council at Boeing; Board Member at General Aviation Manufacturers Association, Dallas Regional Chamber, and Cheshire Academy; Member of The Executive Leadership Council | Vice President of Parts & Distribution Services and Supply Chain at Boeing Global Services; appointed to Baxter's Board in 2023. |
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Given the operating margin in the third quarter decreased by 90 basis points year-over-year on a comparable basis, can you explain the specific actions you are taking to achieve the significant jump to a 16.5% operating margin next year, and how confident are you in reaching this target?
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With the unprecedented disruption caused by Hurricane Helene at your North Cove facility, how do you plan to mitigate the risk of future supply interruptions, and will you consider spreading out manufacturing among other facilities to reduce this risk?
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Considering the softness in your Healthcare Systems & Technologies segment, particularly the decline in sales related to the U.S. primary care market and international markets like China and France, what specific strategies are you implementing to drive growth and improve performance in this segment?
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As you anticipate resetting your dividend to align with the new size of your organization post the pending sale of the Kidney Care business, can you provide clarity on your dividend policy and whether you are committed to maintaining or adjusting the dividend levels?
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Given the expected loss of TSA income over time and the need to offset stranded costs resulting from the Kidney Care divestiture, can you detail the initiatives you are undertaking to eliminate these stranded costs and ensure operating margin expansion while the TSA income declines?
Notable M&A activity and strategic investments in the past 3 years.
| Company | Year | Details |
|---|---|---|
Hillrom Holdings, Inc. | 2021 | Baxter’s completed acquisition of Hillrom involved a total cash consideration of approximately $10.5 billion (with shareholders receiving $156.00 per share) and an enterprise value of around $12.5 billion, closing on December 13, 2021. The deal was strategically designed to accelerate Baxter’s expansion into digital and connected care solutions—with an expected $250 million in annual pre-tax cost synergies by year three—and was financed through a mix of term loans, debt securities, and cash. |
Recent press releases and 8-K filings for BAX.
- Capital allocation improvements: Baxter highlighted the benefits of its recent separation from the kidney business (Vantive), enabling more effective deployment of investment dollars into higher-return projects and margin expansion initiatives.
- Operational and pricing strategy enhancements: The company is streamlining its distribution network and has renegotiated key pricing contracts to better address rising input costs and pass through inflation, marking a shift from past constraints.
- Product launch and connected care focus: Baxter emphasized a robust pipeline including the successful launch of the Novum pump, continuous new product introductions, and advancements in connected care and digital solutions to enhance market differentiation.
- Debt reduction and strategic acquisitions: The firm is on track to achieve a target leverage of 3x by year-end, which will pave the way for potential fold-in tuck-in acquisitions and the reestablishment of a share buyback program once its debt profile improves.