2025 Guidance and Hurricane Impact
Q: Confidence in meeting 2025 guidance despite hurricane and HST issues?
A: Management reaffirms confidence in achieving 4%-5% revenue growth and 16.5% operating margin in 2025 despite minimal first-quarter impact from Hurricane Helene. " " They cite normalization of the HST business, significant growth in pumps (up 50% in 2024, continuing into 2025), positive pricing impacts, operational efficiencies, and cost-containment efforts as key drivers. " "

Margin Target and Stranded Costs
Q: Is the 16.5% margin target achievable or exceedable? How will you offset stranded costs and lost TSA income?
A: Management views the 16.5% operating margin as an anchoring point for post-separation growth, expecting continued margin expansion over time. " They plan to eliminate stranded costs by 2027 through actions like rationalizing distribution centers and rightsizing the organization. " TSA income in 2025 will offset some expenses, and proactive cost-containment measures are underway. "

IV Fluid Revenue Recovery
Q: Will the $150 million IV fluid revenue loss recover in 2025?
A: While there's potential upside from restocking the market after the IV fluid shortage, management hasn't factored it into guidance yet. " They expect destocking effects to balance out in 2025 and see opportunities not yet explored. "

Operating Margin Bridge and Dividend Policy
Q: How do you reconcile current margins with 16.5% target? Will you maintain the dividend?
A: Current margins include stranded costs not yet offset by TSA income or cost measures. " " The 16.5% target reflects expected cost containment and TSA offsets in 2025. " " Management plans to reset the dividend based on the company's new size but is committed to maintaining a dividend. "

Revenue Acceleration Drivers
Q: What drives revenue growth acceleration to 4%-5% next year?
A: Drivers include normalization of the HST business, significant growth in pumps (hardware up 50% in 2024), new product launches, and resolution of operational issues. " " Front Line Care is expected to return to normal growth, and strong performance in pumps and sets will continue. " "

Capital Allocation and Spending Trajectory
Q: How are you balancing investments with cost measures?
A: Management continues to invest in R&D for innovation while expecting expense leverage in SG&A through cost-containment measures. " They anticipate gaining leverage from growth and are carefully managing expenses to offset impacts like the IV fluid shortage. "

China Impact and Tariffs
Q: What is the impact of China performance and potential tariffs?
A: Post-separation, China will represent less than 2% of sales. " Baxter is less exposed to China-related risks, including VBPs and tariffs, and does not expect significant impact. "

Novum Pump Uptake
Q: How is the Novum pump uptake progressing?
A: The Novum pump launch is going extremely well, with market share gains of 2% to 2.5% expected by year-end. " Infusion hardware sales are up 50% in 2024, with strong growth expected to continue into 2025. "

IV Solutions Manufacturing and Pricing
Q: Will you spread out manufacturing to reduce risk? Will IV bag pricing increase?
A: Baxter utilizes a global network of plants to mitigate risk, with facilities in countries like Spain, Canada, and China. " They've invested over $0.5 billion in their facility since 2016 and recovered quickly from disruptions. " While acknowledging the critical nature of IV solutions, they did not comment on pricing. "