Baxter International (BAX) 27 Jul 232023 Q2 Earnings call transcript

Good morning, ladies and gentlemen, and welcome to Baxter International's Second Quarter 2023 Earnings Conference Call. [Operator Instructions] As a reminder, this call is being recorded by Baxter and is copyrighted material. It cannot be recorded or rebroadcast without Baxter's permission.

If you have any objections, please disconnect at this time.

I would now like to turn the call over to Ms.Clare Trachtman, Vice President, Investor Relations at Baxter International. Ms. begin. may you Trackman,

welcome second and conference XXXX call. to morning, quarter our earnings Good

are Chairman Officer Almeida, Officer; me Joe Joining today Baxter's Officer. Stevens, Interim Accounting and Baxter and Chief Chief Financial and Brian Executive Chief

reflect On been the be second third pending financial or XXXX current the quarter results quarter our and we adjusted and results periods with XXXX. for period discussing in our Please along note, Baxter's of financial outlook biopharma this business. call BPS morning, to will the have full prior sale year the solutions

subject While That the the closing as of this now is of transaction a conditions. is closing operation. to customary reported discontinued satisfaction business

We reflecting periods presentation have our prior restated for that schedules IR posted to website.

to year operations for prior In addition, reconcile the we our XXXX for continuing updated will full financial and outlook in aggregate. walk guidance be for a providing

prepared forward-looking let new of for presentation, approvals; our evolving and comments capital potential matters, me regarding continuing start that, actions, pending our and With and of game year in-flight by pricing impact quarter that our this that the reminding impact including development including third full outlook everyone financial statements on regulatory and the remarks the product risks uncertainties. strategic commentary challenges macroeconomic business in development, contain environment, the spending involve including supply regulatory customer XXXX,

for our actual filings differ materially. current cause Please expectations. differ SEC today's detail that from release results materially of course, our and could to actual And refer to concerning results press could more factors

measures in and morning, accompanying Sector's website. ongoing which is this of available A our on GAAP to to be non-GAAP investors issued earnings In the being in understand the used included the today reconciliation today's release measures comparable measures will both presentation performance. discussed are financial call, investor on our addition, non-GAAP financial financial business help

the call Joe. to over Joe? like Now, to I'd turn

overview actions with I of XXXX performance today's across strategic everyone. at Thank followed appreciate you the to performance Financial will detail. Baxter's who morning, and Brian over look begin outlook making you it by you, quarterly our earlier in I Clare. quarter Chief We Officer, Chief will we're interim joining Stevens, more we a an call. Accounting this year. through Officer And and good announced progress second the will turn then walk our

will Finally, questions. always, as we welcome your

Second X% on constant currency quarter respectively. reported our and both and guidance X%, to sales basis X% measures rose on X% X% of basis a prior to exceeding X% a

business solutions top basis. in its touch on and was which noted, there are contract or either reported BPS As discontinued manufacturing discontinued line the in as note rates currency or our growth quarter a on Clare as light we operations would shortly. I biopharma from a I reminder, results constant impact of on operations will reporting of no sale pending

was outperformance demand line portfolio. solid top driven by across Our the

exceeded On earnings the totaled line factors totaled continuing $X.XX Several operations totaled top $X.XX share and and a our outlook share adjusted bottom top performance aggregate, per to line operations line, second driven combined $X.XX quarter a operational and discontinued by combination bolster In from the efficiencies. range adjusted and results. of of $X.XX. $X.XX help to line earnings bottom both and per

across most First greater and care positive want and the I highlight foremost, demand health to stability of marketplace. corners

we of positive disruptions years. solid operational contributing are for approach well sustained inflationary this care, with The to and signs as consistent volumes portfolio. recurrent to admissions more and the across the emerging, recovery to Overall, which its the Following hospital we pandemic surges in the alternate in the over see helping are cognizant remain performance of our are is inflationary impact also backdrop, our performance. to contributing environment an year. stable further macroeconomic improved while steady potential few sites erratic continuing as past of procedural

And we a our in This continued last also updated in outlook. financial environmental overall improvements potential seeing tried Similar combination quarter, have of and with components. risks key these are reflects have electromechanical impacts own front. integrated general, our to predictability capture in we taken to availability the actions supply still there and shore and these are management to do while up supply supply with chain to we cost contributing steps enhanced factors within is operations on work chain of greater

plus our focused has we impacted a range or quarter for bed critical to performance, with saw to building health previously the a significant launches ICU are of of degree a support [Indiscernible] in systems orders capital spending, have see we which continue ICU version of unique professionals band. to PSS Centrella Encouragingly, our the of the features our address improvement patients. Progressa offers commented, and developed segment-leading help As we features complex our additional cost ICU hospital needs bed is now care and the momentum recent of second patient latest enhanced sequential in which

is the capital expectation to improve second hospital Our budgets year hospitals spend. half the half current as their compared reevaluate reprioritize of and in as year the of the for of first spending to areas

across efforts sale implements and strategic [ph], Difficulty]. making We strategic these an of across independent The acute the the for are therapies transformative publicly and enhancing building XXXX. increasing off company, business significant actions spin-off our the our proposed to kick of pending progress BPS renal businesses the remainder are account we and clarity the momentum already announced progress [Technical traded care company, into

our which ahead second Joe our with mentioned, of in are came expectations. we quarter pleased results,

on a in Systems, compared hospital lower favorably capital performance in discontinued and partially $XXX reported Second a revenues currency as decline quarter from global outperformance line basis operations. and Sales included we basis, reflecting which benefited basis in across by and nearly X% recognized and On prior particular Patient better-than-expected Medication growth of systems. compared reduced offset patient quarter business and Support sales spending XXXX a Pharmaceuticals to our much to support portfolio, with on rental from continuing $X.XX increased periods. from across constant X% realized a guidance. million the solid in Sales Delivery, year-over-year every was the sales primarily X% the quarter operations million

which due We also to operations generated revenues COVID sales in from in BPS, a reduction reported is now manufacturing. in lower vaccine discontinued

few to of the performance. years. sales $X.XX driven over in environment primarily increased we've the aggregate, reflecting quarter line, the both absorbed and XX% on inclusive and EPS adjusted of per materials, our and of of $X.XX On discontinued impact due the earnings $X.XX the the operational continuing bottom in Adjusted by expectations and operations, labor results decreased of inflationary ahead share, past to came the for significant experienced to freight cost

the investments. rate foreign A offset from losses lower-than-expected and tax impacts exchange negative on equity

by regional our segment. the walk region Americas Sales East constant compared I'll by and Now the performance in to on sales the basis. currency Middle APAC Africa year basis, prior our in a Sales currency. with grew sales increased through currency and X% grew constant Europe, categories, starting X% X% product on constant key operating in a segments and

ongoing effect we well mortality volumes value-based to sales procurement APAC to of half the the year, expect due China excess initiatives. ESRD second as a As from resulting impacted pandemic to the of patient be the by implementation we as look in negatively the impact of decline from on the performance in

of single driven growth basis. were on million $XXX with our consistent our lower in including Renal China due mid-single-digit Performance optimization procurement a advanced quarter partially initiatives low last distribution the Moving product year this patient category. were in-center at plans the the region following and agreement end quarter Globally, business, the just business. currency U.S. was of the government-based and HD both key Results to increasing lower factors exit by performance partially sales U.S. offset Global constant X% in by PD to digits. PD in the HD offset by in-center due the sales pandemic. Care lower to by in on a census the for sales sales for mentioned, in

currency globally IV systems driven by in Medication year-over-year both of constant $XXX X% for million Sales rates, Delivery strength infusion at products. solutions and grew

Spectrum experience LVP healthy pump. continue We U.S. the for demand in our to

work also to base. quarter to on spectrum, including Zosen, million expect of launches, a $XXX internationally growing on the we sales for portfolio. as half Performance Pharmaceutical syringe in currency As components X% constant product driven bendamustine well sales room Novan and basis. the our strength improve of our to reflected sales temperature availability U.S. the in increased [indiscernible] new continue injectables continue second our of the focus to compounding we by and increased ramp in as we for hospital portfolio year,

basis. the improvement with currency prior Clinical in Surgery partially reflects reflecting advancing constant impact agreement on X% increasing period. quarter performance in quarter. million, of Performance were in constant X% in internationally from offset as by by U.S., Sales a were basis. offset particular constraints for strength Growth sales declines well the U.S. the driven Total comparison in partially $XXX currency difficult a against million, $XXX in the the a the as distribution quarter strong performance exiting internationally, Nutrition was surgical a by Advanced supply select the year that globally hampered on procedures an a

X% APAC a rental from X% to and on for quarter, return primarily business our business hospital realized the basis U.S., compared revenues Support sales as better-than-expected Therapies U.S. prior decreasing $XXX Systems growth were capital by region. Progressive beds of growth representing to strength in launch contribution we million, lower in million, period. by our and in in Sales lower the the on driven constant a Sales our constant currency the year of Plus. spending $XXX In the currency driven and Acute represented basis ICU in Patient a were

positive its entrant smart demand for new debut. our bed portfolio We have to since that experienced

quarter this a the with of hospital Care saw continue products. and the on year by basis. as Line were first We orders, and constant compared half. Joe As our to demand sales the we beds orders approximately the improvement XX% Front to driven currently for million, increasing a momentum currency segment-leading mentioned, sequential second X% expect in increasing in in care significant increasing communications $XXX half

and demand diagnostics, continued health the portion respiratory reflects quarter, improvement components the in us We to This growth the intelligent during availability Front portfolios. supply associated Care which backlog for of saw monitoring business. with electromechanical Line connected address of our a enabled

an continue remains elevated continues have we for year level, products. supply we strong pleased in as portfolio work backlog the which demand the see course the of will of While are to down anticipated business this to over our improvements to constraints,

of in on are were currency now $XXX quarter sales, driven continued approximately constant the with reported X% BPS million, access. million Solutions the expectations the the by with currency X% on momentum the quarter to were a to business compared which vaccine COVID impact geographic second was revenues to $XX hospital Underlying decline line Surgical period. increasing in realized continues sales decreasing $XX increased operations, in excluding basis. basis. vaccine-related year Global in discontinued due growth, expansion lower and Performance prior build was million, quarter. strong quarter as a constant This

P&L. to Moving rest the the of

supply our inflation, discontinued continuing partially with by XXXX by constraints operations of material XX portfolio. of the cost and Our goods The gross margins a basis operations sold, select adjusted points the pricing XX.X% reduced gross freight offset in XXXX The points. and QX labor reflects margins year. expectations decrease by gross totaled QX by line XX of areas basis favorable adjusted and prior represented basis driven and increased adjusted in over margin from impact of points decline year-over-year XXX primarily

partially in Adjusted SG&A higher quarter points to ongoing under year bonus totaled versus year. transformation as XX.X% of or initiatives the employee compensation enhance operations, of a versus accruals Performance of a XX.X% basis decrease of from our percentage annual the QX in sales inclusive period. and SG&A XX plans offset QX a percentage prior the sales, benefited adjusted a was percentage as efficiencies, our as 'XX. in sales of aggregate 'XX by operational million $XXX prior an basis, incentive discontinued On XX.X%

versus points $XXX million increase and X.X% percentage in prior an totaled of year. a R&D sales, of quarter XX Adjusted as the spending basis represented the

R&D XX.X% care on versus aggregate in QX technologies efforts, points R&D a margin adjusted advancing our adjusted was percentage X.X% sales our inclusive of connected as a basis, basis sales up QX XXX an of of of 'XX These year. in operations, X.X% our ramped particularly factors a have prior We in of investments in increasing of as resulted an percentage operating the and and decrease 'XX. discontinued

of in QX On operations ahead top margin sales of was expense of our the driven of on of operational efficiency. an versus percentage operating margin rates of adjusted aggregate Operating totaled driven quarter, came interest and 'XX. rate percentage increased line XX.X% $XXX performance in the variable and sales enhanced million improved primarily interest discontinued in an driving basis, by as impact in XX.X% of prior increase Net million year, by initiatives execution inclusive of transformational our as QX the our debt. a 'XX $XX a expectations on

million Adjusted by $XX were exchange $XX the prior both other year. nonoperating to in adjusted period. driven to year losses in totaled million gains to in XX.X% period. of in compared in Results compared the the was expectations XX.X% prior foreign securities and year to prior the expense The quarter income quarter and compared the rate tax in marketable unfavorable

year double our continuing including mentioned, million more adjusted declined track generated cash we million, $XXX With $X.XX operations year-over-year cash year-over-year to operations driven The half we decrease discontinued primarily earnings compared as prior prior cash totaled of XXXX. mix. was remain the to flow flow versus respect in And than expect in the changes to first $XXX year. the earnings XXXX, and free in flow, in to of free period. on geographic previously from by XX%

XX% interest discontinued $X.XX Adjusted per the savings to of from tax bonus benefit negative freight rates securities. of With including exchange rate as diluted reflecting favorability the higher impact period, variable by offset FX the accruals. on versus headwinds cost the and sales better-than-expected of labor the on prior year well impacts original share increased and guidance, the and debt, declined and earnings, raw marketable lower driven foreign as earnings was higher operations rate from losses respect materials our SG&A as

quarter the year some Let XXXX, me full conclude assumptions underpinning the for third outlook including my comments by discussing our guidance. and key

pleased have half positive As operational momentum with of we first to we the year. performance through date mentioned, the are seen and the

impacted mitigate to macroeconomic challenges work are to the that continue signs results reassuring. we date, While latest to have our the

guidance. for demand fundamentals broad-based. remain into walk business updated Taking I'll solid results, Our account now second is our positive and the our portfolio quarter through

pending to third expectation of the Our towards is likely current sale that the the quarter. VPS of end close is

EPS that ultimate and close the uncertain, the it assumes scenarios, adjusted another operating of timing are closes margin of guidance as providing XXXX quarter. that the full does X not in we However, is at the end X contemplates for and deal completion where year XXXX third

sales operations XX on expect currency a year XXXX, year For X% on of foreign exchange and approximately full growth basis point X% results continuing full X% Baxter a be to now a total reported from headwind to expects on basis. constant reported basis now basis. to a We

were operations, would reported our in of a Assuming be aggregate, on for year-end, BPS part growth a same a through remain year-end year both On operations continuing not XX.X% a of were of If growth margin the closure. impacted timing operations XXXX, the aggregate, expect part Baxter we will discontinued full currency including operations, basis, that we the adjusted margin to of the sales to to BPS to as XX.X% full operating pending and XX.X% basis. would remain continuing adjusted through outlook constant operating and to significantly expect including discontinued which the year in Baxter by continue be BPS of XX%.

XXXX. pending to If year-end, $XXX transaction fiscal million expense expect for by interest of we BPS would does approximately incur close the not

would adjusted to quarter. operations anticipate BPS interest the result expect $XX the rate full of expense aggregate September in if a a XX% end both anticipated, However, approximately would basis. continuing the on a transaction an million, operations benefit as of We tax XX.X% closes of continuing which of year now and to currently by fourth in we reduction

Given negative second $X.XX rates, prior current absorb we to earnings $X.XX expectations. to to foreign impact of relative a per share of in expect year the exchange half the

aggregate of $X.XX adjusted XXX adjusted per adjusted the anticipated, $X.XX Lastly, operations on share, the per discontinued earnings from earnings $X.XX. adjusted to as scenario, from million diluted $X.XX. discontinued the operations quarter we we operations total third expect at close discontinued full earnings of $X.XX basis, the operations in year-end $X.XX operations an $X.XX currently Baxter expect operations pending sale earnings to remains where part Under expect a diluted of year and includes earnings including average continuing which we of of diluted $X a to aggregate, including end to BPS were would of from earnings adjusted XXXX continuing share count this through discontinued from XXXX, If $X.XX adjusted shares. to of BPS to and now of share, $X.XX

quarter closing benefit global with to closing continuing quarter approximately pending sale. X% assumed currency constant to operations, on after continuing fourth estimated plan adjusted earnings X% $X.XX of due and the from XX Specific giving date to XXXX, $X.XX, a reduced BPS consistent excluding repayment attributed the to on we the debt a primarily approximately the expect adjusted expense associated basis of of and excludes we special outlook anticipated September third share. This items, with earnings includes sales growth to interest of expect a from BPS operations basis diluted $X.XX and reported per of effect

now into $X.XX We diluted expect of diluted share. expect Q&A. $X.XX aggregate open per Taking that, of discontinued would from With adjusted operations. adjusted to earnings account, call $X.XX for this in earnings we share up we per the can

the We International available digital that and like Robbie session. call first will question-and-answer JPMorgan. from Marcus of your participants line Baxter [Operator the comes replay question would recorded, the days on Instructions] And now will to remind a at www.baxter.com. be this XX being I begin is website from

nicely it and it's start, with looks a like discontinued complicated operations. and to good Congrats quarter. is maybe the progressing but bit continuing on raised a beat Joe, recovery

combined of of get pro in your the can we so the the do the the year it and for -- compare margins? did And would company a So regaining confidence What's in quarter half sense expectation on how forma, love margins? the back to apples-to-apples. the

Robbie. I ask you, Stevens Good morning. to Thank Brian ask.

we other and everything know We as understood this drove is talk clearly sure about that and make the can very then I need we information the to quarter. our a solid is quarter, success guys to sure clarified will that you had make want things that

going now to Robbie, which imagine. X much, This very mentioned, to to And Thanks discontinued I as forward. about conditions, expect of has end investor the you that's want we is gone due apples-to-apples highlight is at of although operations visibility can the that triggered September, our right presentation, subject likely provide we of to back results going on sell close end discontinued signing our for in One agreement you recent quarters months customer question. BPS, the did a thing as have to operations and casted, recasted reporting. show adjusted our some to basis at to closing the

One does savings. from forward we the thing from what recasting to that does going interest not benefits it periods, to is the expense that expect reflect takes point while that BPS out out that get though contribution in the comparable

$X.XX like think I expect discontinued if you're operations think things the from in annual interest the net probably an range you So we looking savings at on and $X.XX to headwind $X.XX. year, is while that, run impact we for the in basis of rate really full the a closer about after EPS

adjusted far full we a as company or XX% guide BPS land. gave as reported On the operating which prior where our including would quarter to company, landed, come for the at expect margins expected discontinued we is full margin adjusted and adjusted the operating quarter. of operating which we operation of at where our for your last we a above the little operating year we were about full to year, consistent entire in for basis as to -- if margin a operating in own was to margins the -- question, we basis, the in that XX.X%, XX.X% with bit came -- specific XX.X%, ballpark our So on

the main Now guide XXX half drivers point of of margin the second There's expansion that year. in this really that. you'll X note a basis implies

growth. first sales The is driver

As the largest loaded base. fixed the we continue be of component absorption us on to the cost against And greater track sales operating is really know, be that sequential that our what for half to you back-end very driver the tend integrated that which our margin second we of to in second the see improvement year, chain. supply and relates gives

rolled year out As you coming the adverse part into inventory during was we that recall, the first the manufacturing variances had related the as of sold. year

chain inflation. of manufacturing on the have high a teams have been our margin initiatives Additionally, of integrated that improvement by and been the supply working lot levels overshadowed

the from stabilize benefits the finally, of benefits is starting in we're the expanded the those we've we're lap seeing inflation now expecting we're back that initiatives in to from periods, recent to to the the inflation savings. seeing cost As expecting we're to seen start half drop such with And that's now savings we're year, going margins. then from line bottom

came this you'll contributed are those new on we going second those benefited with cost reorganization our model. to and in a significant of this even of savings $X.XX half. And more as range in savings and you guidance which, for the to initiatives we EPS savings quarter, then in connection recall, earlier initiatives flow overall the beat already some As to top our cost company operating had our cost above end through saw, year

operating good where margin the side. traction we're about landing really So we're we're on seeing, and confident

comments really June. pump helpful. the approval in could large volume there there's competitor pump in know That's any you U.S. as recently maybe their a early I follow-up, I or just resubmitted infusion you've your any provide? for wondering Great. was And if got update platform [indiscernible]

have they requested. was additional resolved believe of we last FDA's open primarily that issue that the subject the successfully We information

planned changes implemented proactively with Additionally, we FDA. consultation the that software in had we have

the communications FDA during review. We the regular have with

the regulatory the in during We Novo in recent are related come Canada committed issues launch and resolving issues. through LVP to any process learnings up with of and connection questions that or

on our current we of the upgrades are to version pump. working Canadian So software

the FDA cautiously them And the with few on. in we work this Canada we can implemented to tell through As communicate updates going FDA the months, we before work properly. alongside and in [indiscernible] are to what's optimistic next the product we so are

SIGMA with in pump them. I just are also We is to well. Spectrum our extremely constant doing want communications that add

are chain augmenting the make pump be supply available. continues that that of We to pump sure to

available. that pump be need We to

year We have hundreds own beginning chain integrated supply backward forecast great. we these that will market, since XX on of next and gateway that that of we the in that to are This became twice that to making year, pumps which our of doing hospitals. the able of the new be uses into growth that, pump thousands actually months, hospitals, as Novum better, continuity fact system been and the give we're in by the upped today. It's a the sure matter has

continue So that. alternatives we've we'll to steadily getting do year-over-year. share tell market we and have for been really you, everything. I'd

a for to have far just looking course, forward market this and done little for by the LVP Of syringe extremely our normal expectations pump, in are actually exceeding we well, has our we're U.S. in year. which

from And from Fargo. your of Larry next question line Wells Biegelsen comes the

Brian, here. on a guidance. I yes, nice or -- Joe ask about to sorry, wanted Congrats quarter the or

second you're believe but third about second nice the lower talked and the in X% a about And seen the the in the quarter quarter? what growth why half I up in we've than you put quarter, had to I talk in half growth Joe, X%. here about be And You X improving second what second trends follow-up. might assuming so you're guiding maybe number

the Care from be demand excited around X%; We saw came which and down our currency the Sure. skip in [indiscernible] growth. we and temperature Thanks saw I'll appears MPT half anything. started of and very U.S., the picked quarter, we recent about launches periods, recent then contributions business stabilizing, for for is room PSS you we're the in our was around respiratory really our some which in seeing current strong really X%, constant rental good rental [ph] some including from came for where around had at and Frontline we've then we a going in strong of before, backlog, second some on reflected X% up, traction as reflecting can diagnostics which COVID pharma the in as and high. finally, traction which business, much Joe question. our the X% it about as volume at some of add came in Zosia business performance worked basis, business, as softness the to capital order still have in revenues health was our has we although orders and see in demand seen some to year we're the following into intelligent that facing talked beds headwinds lower started that

where X% down and deceleration we're to in sequential really, going into slow a business headwinds to expecting around in driven PD most really quarter significantly third is China. it story the the our the facing growth for the So our by bit

that that we're where second census of of procurement And starting they've that the is has in mentioned, had counts business, we reduced see a the impact little within the we As bit in pandemic year half also the there. excess mortality then China. volume-based following of of over more some our have to the impact of patient

as as think those well XXX So business, we're that for headwinds. about renal some of points impact seeing which net-net basis from Kidney includes acute, Care a I

performance overall, that items we're I of able previously are strong we've our which across to sequential that period been or to lapping, bit. down happened think year in still with highlighted we've there offset currently driving discrete some is But going headwinds be Additionally, growth the prior our those the that portfolio. rest a little

on for Plus has the good momentum, starting capital. alleviating to and into that market seen which been the say and we're in of a competitors. part success. concerns had also competitive a that matter we're with as PO launch we share the to We've see Progressive quotations very that update the competitors conversions, the That, We've delivery. of -- from to seen year of beginning is in tremendous a have fact, quotations conversion I from -- Augment taking

been good a in the company new as a Linecare well this plan has and great our in from execute the and the very with team products. So And they above now place, good record the on when for are track delivery beyond performance able business launch medication U.S. to actually we

little color on a the around bit Brian's comments to our So just of excitement business. more

It was media that like it for one that? got the Just more of more warehouse the definitely me. you injectable manufacturing just that not was quick weeks. a it damage Pfizer see potential from the impacted. understanding any the was impacted. is Or coverage lot Obviously, a seems your follow-up the plant, benefit of was it negatively Do couple last warehouse,

the I'm going ramp to little a a from we status. the half comment bit how little how more have one bit own the in a I less. you this north tell lot of they Pfizer's say depend the portfolio little have we not $XX that up opportunity I'd questions. that, going there. than have, their of They answer is to can a competitive But can depends a is chain. be Larry, probably that is Will second to about bit depends in much what's in bit chain. little It inventory It year. products on that we that sell, million. of the maybe

needs be the will that the will there if there them be need products they customer Baxter with have. we to it. And is for thing the when patients serve important One

we any have clarify Obviously, just in that situation. evaluate guidance included that we we're Larry, upside to not the continuing provided. to the

some As overlap. mentioned, believe we Joe is do there

ensure how and get so And in the marketplace is the those customers can fill products. to working those the we address gaps and team

Your line Antalffy Danielle next comes from of from question the UBS.

I or guidance XXXX be at updated have the to we to point too level. thoughts tough given know greedy XXXX not here. talk love a And at high to But here. about moving qualitative just this parts some would I get and maybe all

XX next the we one the piece growth what the see Obviously, growth the for should months, ex sort As them. be ahead you [indiscernible] Novo we about [ph] key that, if business, drivers as is to business? here of Claire, Brian hopefully, of look talk what in focused Joe key or you XXXX, or the RemainCo IQ that the be? on drivers But beyond over can beyond of will renal,

want I great there the Front Huron HST I single-digit former still we is Care Line highlight opportunity is the call what which a HST, high in care. call business, frontline our think growth. driving to is really

I good at think potential the gain of looking performance I launch our and the us is the that continue. share will possibility of And new in today. market beds for bed a recovery think

I another advanced think is one surgery.

and products, company the supply The coming the anything passive but don't hemostat. second product driver cloud demand hemostat. it. a a speed the testing now hopefully that per a And like This but we and pleases we've of have in have the is by get customer competitors. which to the has come XXXX, for going not really superior in a saying and chain hemostasis high. are demand the performance the we line that's claiming it is looks the to to the I'm that when Baxter's that just good, is the of product I'm side-by-side completeness on test good is make seen by are We in is the supplier is to We the capacity in, working do, just we're constrained first label. products. product that

business, in new we have pharmaceutical we the And launches. have

pharmaceuticals to management sales. products and has really new improved pick our Our ability the get to in time launch

to stuff So with But on backup market. get And going to a before. count as share. us to really the on We're do hospitals like were we a Nova. to platform have we would tell, good to happening. pump we can everything never some clearly, to have that penetrate otherwise spectrum market very makes available really easier we for taking it syringe us still And are the solid that

impact in lives those our off I the patients So of Baxter we is BPS to smaller, and all XXXX. then as a actually is the of innovation what all, targeting Renal ability sale is create changes, by that spin to we're company think for execute all driven

Joe. And that little maybe a add if could I bit, to

that the Progressive of Plus for also with about recent good we're our of new it's though came we're even well. just the is that some excited out really seeing the item stages. We're launch early demand from about ICU And bed in Centrella as Another features excited that really we our bed. platform

a that for I'd really terms the new internal operating focus big is of in item going driving highlight that's The model the us like of forward other growth to impact to. transitioning we're

think segments As where of that. many that bottom, we're are about year. leaders the our and entire from transition And be now, a organization quarter. earlier we're to going Right aspect this like really the new of previously, to we mentioned this we've off talked from new focused reporting we own that really of our is in before, CEOs have I planning the of expecting to year, top that's coming organization shifting vertical-focused started second actually including we coming that the half to segment regional chain the a supply business as process

transition, cut part performance at But excited really forward. going to share looking to portfolios this at much initiatives the developing very of some business of to on are all leaders we're that be able with really that of you grow So new that as focused time. our financial the we're segment of

next Stanley. line Patrick of And from the from Morgan your Wood question comes

curious if renal, comparatively how the just I'm seeing performance if Or similar that Amazing. across there? seeing HD kind in for in sort those we trends verticals, X very in shift make relative you're obviously, versus there. agreement, of of flow a PD if you're adjustment, any distribution seeing the HD, patient of you're curious

also business, China, affecting X VBP spoke due and to we things Our with remarks, the PD we being the the which exception about the think -- the of in COVID. I prepared mortality

is the starting starting see the you some If mid-single-digit business that, with growth, to COVID. growth. the recover patient isolate geographies We're from of to rest

low with digits, from Some single others but growth coming last year. up negative

well. So that starting we're to see going

took where how we and rotation business augment We in HD We make Baxter, business. are looking see that that accretive as We're a for to to other be, to to initiatives at portfolio us. also full-fledged optimization process.

we're So supplemental business way. profitable HD right making is We right is we looking we business. at sure looking competing make to in that We're are monitors. to and dialyzer want at the right -- a Baxter the growing. in And time, that have that the place our is our that, sure

a recapture is optimism with growth business term continue that the China, to are so to and of that But PD market. prepared grow situation mid-single-digit in XXX% a be business that of in we're with we growth starting see to make as market. Remember, stabilized this the want exception to project of the COVID in long we to China patient terms sure we post

comes Steed Bank the Your next from Securities. question America from Travis line of of

upgrade finished, then nuances a I like to It I that's on with the did have earlier want want And and few takes pump response you work to your follow to you first it just the from for and move can that sounds after up, the Canada sure Joe, there Nova. then understand make FDA. months.

is in Yes. doesn't Travis, is U.S. the Canada on The market. not pump have Nova approved.

sure Canada through point So they moving with forward. Health making some working we updates. to are some us is make your have software go to with -- We're okay we to available had

make improvements going we as We place to to with next the bump the also that sure are potential be and couple upgrades all changes months. then in work and of that making in we're FDA. is the other have that

Health behalf our those you factored want neither that to has the want that with in will them work We with changes want -- Canada, our platform as solid. and of We -- and we but we confident and we but to we that make want I we in, work tell to sure on those application sure them is we both speak address to we make to problems the of technology FDA, trying Our that execute FDA. all Canada. don't

upgrade to market. concerns any any address on to products other done have would we the continue like to We

the then to on by looking that And update, ability you're Perfect. color the or progress type question year-end. making search? for on had Any announce that was the with you're I other person CFO of

to quarter, guys first to be in our a have able the provide Well, were all, doing as Baxter. discontinued a great amount a to with here to able teams this we tremendous sitting Brian then contributor operations you CFO. of And for And work during always, reconciliation. do of job great or

process, internal call. candidates, in to days a XX external we to in next final in continue and a XX, are interview We make to the position be will XX hopefully and

has is advanced brand-new I the to of most just Travis, [indiscernible] to that on want some features would the is one remind out there. augment everyone thing comments to that NOVUM platform. safety Joe's a innovative

on brand-new point, look We doing a really FDA. the innovative Joe's behalf syringe we work and And is market to mentioned with at But in we're to going NOVUM speak platform. again, can't already. that is So of obviously the FDA. well this

to can brand-new So the address we're when you -- up. obviously, find come as Health some the of going situation a and look at issues you with issues platform, Canada those launch

So the we're both going with this pump agencies to address those on market. work to and obviously get

said. is technology, address about how a like and in They we I decades get very had in this technology, old It a cautiously to optimistic confident the this the market. we we as issues. to not said, in I'm those be competency And Baxter and the brand-new have pump remediated pump, is are legacy Claire This issues is -- is which a complex approved.

line from Vijay Your question of ISI. the comes from Evercore next Kumar

Good growth. first up Are to product Maybe PSS seeing U.S. growth Joe, print the digits. side, at for you question time? translate double my does on here. pharma How mentioned pricing orders revenue being it think Congrats. in segment, this stable point the we I U.S. in XX% your

time. take Vijay, at we'll thing one a

and encouraged seeing We has are and for that us. the growth PSS, QX between order QX

slightly the negative. going on threshold growth. Remember, now we're We this to growth are was cross

we growth ahead of our were This And sequential looking in expectations. was this line. product at quarter

Yes.

let that a what little here's would I -- bit. augment So me

our which So of obviously is sequential to Joe's communications across plus improvement see care is all PSS, products. point, did around we our furniture both XX%

we be the obviously, we third year-end quarter. be quarter. We an continue the second of Just third face to as quarter, from first rates sales half, the But -- their dollar of of the bit a a little are to in to we do expect face half go more order second to the what half orders the just anniversary challenging ahead overall comp as do in -- we is. improving. kind the have that, did in And Hill-Rom third

Central seeing the positive half Progressive I Plus the the for first to half of features think that of kind the we're seeing But we continue that to So a of we're augment HST business. Connected with there, Care going is momentum have that and we're the on year. the lot key a of and both continued CLR, the second versus lot momentum within that the

of pricing you about in are in I pricing to general, And terms of talking pricing, PSS. you referred think

pharma U.S. pricing? for Sorry,

premixes margin. specialty is For is that Norepinephrine U.S. carry what products the call launches. are launching pressure those by of significant doing and We new like which phenomenal gross our continued Baxter generics, a we And we execution see It with pharma. [indiscernible]. has products been did

been how go business continue as to we're you business executing in forward with can see by of in price new only more and extremely So second products, we of progress this done to on all of as the we huge we're making pressure launches molecules, that generic are be growth with able them. offset erosion. face well to quarter can the only going and this that, can price be done, against And we've

really really driven What injectables -- would launches. within Yes. business, low these success say I this double digits, is business growing digits low that, kind on of the to Vijay, our U.S. of double mean, I

That have it now we our go fully erosion. product been with that able to offset new will offsetting price but we So will on, launches. be

Then one those related assume cost point supply leverage much XXX through revenues back flow should And step actions, should higher we are those and next chain of year? cost helpful. on your your chain versus is and maybe for actions. basis That's the on half, that up. How to margins, structural volume supply

those contributing then roughly about looking our initiatives, I of some we're continued just of the think basis overall the to bps points. the the the alone margin XXX inflation on chain expecting impact stabilization we've XX the basis to been we're the we're of initiatives I going and undertaking, X gave that our XX where XX moment about when coming side offset with for at items prior by I we're back cost savings close is improvement, on if impact points actually year, think basis back think improvement sales around and at seeing guidance, the is drive versus savings the we of points FX So of is operating growth which are and half supply of

time We question. more one have for

comes Our Matt final question from the of line from Miksic Barclays.

could. I just I'd your out guess, competitors comp if of one I to the that couple a And of So ask perception broad love got first, of approved. may think questions, I the be

is a may You be the of perception having love a Baxter in this, of sort your you've stepped have not term. I'd yet to this the little disadvantageous sense landscape that get got approved, but of your is just of viewing the spectrum statement bit competitive new I way that know next-gen platform? And the like near pump in next-gen through to the little if what about able introduce And look like then you're them to pump, if front? being follow-up, dynamics And to and I until your of pump I could. look talk bit on sort current what expect on from market, the one have could you when your competitive a this now you the

Yes.

spectrum, have version So reiterated, But platform. Sigma weigh But I'll as Spectrum and selling that again on we've I innovative or IQ been we is -- just that. Joe has NOVUM do we map. let this successfully in a been X, been have brand-new also Spectrum

features it are that Joe's have gateway what it the point, We to NOMVUM be backward we so of was our hospital make will are going And within integrate similar to production all the EMR going to up to compatible able with ramping and do. that. to

share. I said been and we've more an on-market is have it we Matt, think this market times, we pump converting

merits a matter from a spectrum just competitor As reasons of the for converted the itself. of accounts by fact, of we

has to software opportunity customers into have some do it's opportunity. do that is course, have we play. great opportunity greater a we and integration because safety we come features that Do we for with have platform that Of that a NOVUM? So have other

But easier then, integrated platform to it's SIGMA and even until spectrum. So Baxter well develop new forward makes that we're gateway, do make platform, friendly current that the approval. by syringe which to to between into continue our with our by it backward going integrate the for that new the and to also more looking we is

helpful. super And then That's just on growth.

structure. I the and sale capital provided think deleveraging that, year-to-year biopharma change change opportunity understand a and we positive of that's

Any these mean right is that on trends, And you and the are what something here looking rate X% growth a also in business basis, into now? what on from In just the to XXXX? of like up business know I of the we we I'm combined the now? can the you I sorry, it X% the growth [indiscernible] based touched look would topics color and half get quarter that first current business numbers that kind the during room growth looks back call. rate at terms clear still lift at say, the growth want down be on -- on think think in the it's what it or there? grow? into I about about know right, -- like -- you like question Do you as the like potential accelerated to business representative you there's I more to that way often already maybe Hill-Rom our if

of some give just the facts. I'll Matt, Yes,

single the You're was it year, Hill-Rom exactly digits. right. did In AST the or up of half business the first call low the

mid-single that factors consistent Care, to Really both and Front all business, product the that Line new to expect in half by back in improvement the we've launches. the our accelerate PSS of talked driven year, expectations. within with digits We the then about, the

we that that, continue forward. what that -- that underlying is So we is let see will to Joe. believe But mid-single going I'll that run rate digit

Yes.

weighted I their but average the some as this I Baxter in which is as success rate. have in of still product that for not other growth above have store the PSS, in believe only launches is we our the that smaller we well products think also growth in is cardiology, business Care some Frontline XXXX. new

was are us potential get we with is both we're there businesses that about -- all source our difficult That's creating we reason was with that see making us. about PSS augmented the augmented great mid-single differentiation as I'm in the get growth making, also to supply last in a real with growth I portfolio our to significant is going for business, been year to the digits Heron growth a rates period that acquired chain our that. progress a we really to see don't moves great businesses. future. be And and why to an So for create to surgical the and is in business, has GSS and for able which resiliency opportunity business, of discount excited

business, even are excited Baxter and that to have through growth further transform we So the that even with we adjacencies about in potential more business.

Congrats on quarter. the

Baxter participating. conference you Ladies and call gentlemen, this for concludes Thank with today's International.