Baxter International (BAX) Citi’s 2026 Unplugged MedTech and Life Sciences Access Day summary

Industry and market fundamentals

• Medtech fundamentals remain solid with stable patient and procedure volumes, and capital spending showing resilience despite market volatility.

• IV solutions market has reset to a new baseline, with demand down 10-15% from pre-hurricane levels due to lasting clinical practice changes.

• Pharmaceutical injectables are also impacted by new IV protocols and supply challenges, with some recovery expected in the second half of 2026.

Leadership and organizational changes

• New CEO brings operational expertise and is driving a more consistent operating cadence and restructuring for agility.

• Verticalization continues, with more end-to-end P&L ownership and decentralized decision-making, streamlining costs and accountability.

• Management restructuring aims to bring leadership closer to customers and improve responsiveness.

Product innovation and pipeline

• Connex 360, a next-generation monitoring device, and Dynamo, a connected stretcher, are recent launches aimed at organic growth.

• Innovation is increasingly customer-centric, with more new products expected to support growth in 2026 and beyond.

• AI is being integrated into products, manufacturing, and back-office operations to enhance efficiency and customer solutions.