Baxter International Inc. · NYSE:BAX
Baxter International — 2018 Baxter Investor Conference
18 slides from Baxter International's conference presentation, May 21, 2018
Slide 1: Advanced Surgery
ADVANCED SURGERY Wil Boren GM, Advanced Surgery May 21, 2018
Slide 2: Safe Harbor Statement
Safe Harbor Statement This presentation includes forward-looking statements concerning Baxter’s financial results, R&D pipeline, including planned product launches (many of which are subject to regulatory approval) and results of clinical trials, business development activities, capital structure, c
Slide 3: Advanced Surgery Market Overview
Advanced Surgery Market Overview1 Global Market Size CAGR2 $3.8B+ ~$3.1B 7% - 8% MicroSurgery Implants and instruments for microvascular anastomosis #1 Baxter Position 4% - 5% Hemostats & Sealants (H&S) Absorbable surgical hemostats, sealants and adhesion prevention #2 Baxter products Position 2018
Slide 4: Market Dynamics
Market Dynamics1 Global Health Demographic Expenditure Trends Growth of 4% - 5% on a global Support stable long-term per capita basis surgical procedure growth Outpatient Minimally Utilization Invasive Growth Outpacing inpatient surgeries In robotics and laparoscopic for ortho, spine and gyn in U.S.
Slide 5: Advanced Surgery Portfolio
Advanced Surgery Portfolio 83% Hemostats and Sealants $707M 2017 Sales 11% Other 6% MicroSurgery Broad Portfolio To Address Multiple Surgical Applications | 5
Slide 6: Strategic Growth Drivers
Strategic Growth Drivers Portfolio Innovation Market Development Enter Adjacencies ~$80M Optimized commercial organization Enter Basic Hemostat and Synthetic segments 2023 New Product Revenue1 Rebuilt product pipeline to establish annual launch Generating evidence of clinical cadence & economic outc
Slide 7: Advanced Surgery Pipeline
Portfolio Market Enter Advanced Surgery Pipeline Innovation Development Adjacencies Actifuse Flow Altapore Shape Next Generation Hemostats & Sealants Floseal Advanced Advanced Buttress Hemostats & Sealants Advanced Delivery Systems Applicators TISSEEL PRIMA TISSEEL Advanced Sealing Indication Expans
Slide 8: Evolving Floseal: Preparation Time
Portfolio Market Enter Evolving Floseal Innovation Development Adjacencies Operating Room Time ~$40/min1 Preparation Time Original Needle Free Full Sterile Prep Fast Prep Ready to Use (RTU) 1999 2012 2017 2019 2020 Reducing Time To Table Will Increase Floseal Utilization 1See slide 17 for reference.
Slide 9: Optimize Commercial Organization
Portfolio Market Enter Optimize Commercial Organization Innovation Development Adjacencies Intensified Focus On Performance Management • Built a new leadership team; restructured U.S. and OUS salesforce • Restructured compensation program to better align with KPIs1 Concentration On Medical Education
Slide 10: Strong Evidence Story
Portfolio Market Enter Strong Evidence Story Innovation Development Adjacencies Published Clinical Studies1 Published Clinical + Preclinical Studies2 187 2,034 17 299 SURGIFLO EVICEL Hemostatic Matrix Fibrin Sealant 1,2See slide 17 for references. | 10
Slide 11: Strong Evidence Story: ~$5 Million Potential Annual Savings
Portfolio Market Enter Strong Evidence Story Innovation Development Adjacencies Net Cost Benefit1,2 From Using FLOSEAL: ~$5 Million Potential Annual Savings Vital Edge Expands Our Customer Base Beyond the Operating Room Surgeon 1,2See slide 17 for references. | 11
Slide 12: Enter Adjacencies
Portfolio Market Enter Enter Adjacencies Innovation Development Adjacencies Entrance into the U.S. Basic Recothrom Hemostat segment & Preveleak Complementary to existing portfolio Utilize well-established MicroSurgery footprint to MicroSurgery expand the portfolio and enter new segments Augmenting P
Slide 13: Reconstructive MicroSurgery
Portfolio Market Enter Reconstructive MicroSurgery Innovation Development Adjacencies Venous Connection 1 Baxter Benefit1 22 minutes 4 minutes 2 3 4 Suturing Baxter Standard of Care Flow Coupler Reduces Vein Anastomoses Time And Improves Patient Outcomes 1See slide 17 for reference. | 13
Slide 14: Reconstructive MicroSurgery
Portfolio Market Enter Reconstructive MicroSurgery Innovation Development Adjacencies Remote Monitoring (2018) Venous Coupling Arterial Coupling (2019) Flow Coupler Baxter Nerve Neurotube Repair (2018) Potential To Double MicroSurgery Annual Revenue By 2023 | 14
Slide 15: Transformative Innovation
Transformative Innovation Ear, Nose, Neuro Cardiac Throat and Bariatric Thoracic General Spine Surgery Gyn and Liver and Urology Pancreas Ortho Colo- rectal Deepen Penetration In Targeted Surgical Specialties By Utilizing Robust Salesforce | 15
Slide 16: Advanced Surgery Summary
Advanced Surgery Summary Leadership position in growing markets with multiple expansion opportunities Well-positioned to deliver on sustainable growth of 6% - 7% through innovation, market development & commercial excellence1 Targeting key growth segments to accelerate the portfolio reach and delive
Slide 17: References
References Market Dynamics (Slide 4) 1) References: WHO, Global aging report, Weisser TG. “An estimation of the global volume of surgery: a modelling strategy based on available data.” Lancet, Truven MarketScan data. ISRG investor conferences Evolving Floseal (Slide 8) 1) Childers CP, Maggard-Gibbon
Slide 18: 2018 Investor Conference
— 2018 Investor Conference a
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