Baxter International (BAX) 2024 Wells Fargo Healthcare Conference summary

Strategic divestiture and rationale

• Sale of Vantive to Carlyle for $3.8B chosen over a spin to secure earlier cash, accelerate deleveraging, and ensure valuation certainty amid market volatility.

• Robust process led to confidence in valuation and transaction structure.

Transaction timeline and financial reporting

• Closing targeted for 2024, but may extend into 2025 due to regulatory reviews in over 30 countries.

• Six quarters of non-GAAP financials for continued and discontinued operations to be provided before Q3 earnings.

Post-separation growth strategy and financial profile

• Focus on innovation, new product launches, and margin expansion in a more simplified, nimble organization.

• Novum pump and new pharma injectables expected to drive growth; HST and MPT segments highlighted for future launches.

• Emphasis on operational improvements, supply chain, and cash flow conversion.