DEERFIELD, Ill., March 14 /PRNewswire-FirstCall/ -- At its investor conference being held today in Chicago, executives from Baxter International Inc. will discuss the company’s key growth opportunities, research and development initiatives and long-term financial objectives.
In a series of presentations, Baxter leaders will highlight key business franchises and a number of initiatives to drive growth. These include: continued optimization of the company’s current product portfolio, geographic expansion, increased productivity and investment in research and development, as well as acceleration of business development activities. Executives also will showcase research and development initiatives that offer potential for pioneering new, curative therapies for a variety of diseases, improving response to public health threats, advancing patient safety, and enhancing convenience and quality of life for patients.
“Our diversified healthcare business model, with unique technologies and capabilities across the spectrum of biotechnology, medical devices and specialty pharmaceuticals, combined with our focus on medically necessary products and strong global brand, gives us confidence in and excitement about our future,” said Robert L. Parkinson, Jr., chairman and chief executive officer. “Our increased investment and focus in research and development is beginning to drive benefit and value for patients around the world, as well as for our shareholders.”
Baxter’s investment in research and development, which totaled a record $614 million in 2006, will continue to increase at a greater rate than sales growth over the next five years. Several research and development programs that the company will showcase include: regenerative medicine initiatives in stem cell therapy and hard and soft tissue repair products; cell-based vaccines; biotherapeutic treatments for Alzheimer’s and other neurological diseases; and medication delivery products with special antimicrobial coatings to reduce bloodstream infections.
The company also will provide its financial objectives, through 2011, which include compound annual sales growth of at least 6 to 8 percent, and growth in earnings per share of at least 11 to 13 percent. In addition, the company expects annual cash flow from operations to approach approximately $3 billion over the period.
“Our confidence in our growth is due in large part to our balance across multiple products, businesses and regions. This balance lowers the company’s risk profile, and represents another significant, tangible benefit of our diversified model,” said Robert M. Davis, corporate vice president and chief financial officer.
“We believe we have an achievable outlook over our long-range plan, and are well-positioned to meet or exceed these objectives. While we are increasing our focus on disciplined sales growth acceleration, we also will continue to focus on margin enhancement opportunities and leverage our operating results to grow cash flow,” explained Davis. “As we execute on this new phase of growth, we will deploy our cash flow and borrowing capacity within a very disciplined capital allocation framework aimed at enhancing returns and driving shareholder value.”
A webcast of Baxter’s investor conference can be accessed live from a link on the company’s website at http://www.baxter.com beginning at 8:00 a.m. CDT on March 14, 2007. Today’s presentations and a replay of the conference also will be available on Baxter’s website. Please visit http://www.baxter.com for more information regarding this and future investor events and webcasts, including investor presentations and the company’s Annual Meeting for shareholders to be held in Chicago on May 1.
Baxter International Inc., through its subsidiaries, assists healthcare professionals and their patients with the treatment of complex medical conditions, including hemophilia, immune disorders, cancer, infectious diseases, kidney disease, trauma and other conditions. The company applies its expertise in medical devices, pharmaceuticals and biotechnology to make a meaningful difference in patients’ lives.
This release includes forward-looking statements concerning the company’s key growth opportunities, research and development initiatives and long-term financial objectives, including with respect to sales, earnings per share and cash flows. 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: our ability to identify and execute on growth opportunities, including the timely introduction of new products and the acceleration of business development activities, and to exit low margin businesses; demand and market acceptance risks for new and existing products and other therapies; product quality or patient safety concerns; future actions of regulatory bodies and other governmental authorities, including the FDA and foreign counterparts; reimbursement policies of government agencies and private payers; competitive products and pricing, including generic competition, drug reimportation and disruptive technologies; inventory reductions or fluctuations in buying patterns by wholesalers or distributors; the impact of geographic and product mix on the company’s sales; 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; foreign currency fluctuations; and other risks identified in the company’s most recent filing on Form 10-K and other SEC filings, all of which are available on the company’s website. The company does not undertake to update its forward-looking statements.
Baxter International Inc.
CONTACT: Media, Deborah Spak, +1-847-948-2349, or Investors, Mary KayLadone, +1-847-948-3371, or Clare Trachtman, +1-847-948-3085, all of Baxter
Web site: http://www.baxter.com/
