Company Profile

Baxter International Inc., through its subsidiaries, develops, manufactures and markets products that save and sustain the lives of people with hemophilia, immune disorders, infectious diseases, kidney disease, trauma, and other chronic and acute medical conditions. As a global, diversified healthcare company, Baxter applies a unique combination of expertise in medical devices, pharmaceuticals and biotechnology to create products that advance patient care worldwide. These products are used by hospitals, kidney dialysis centers, nursing homes, rehabilitation centers, doctors' offices, clinical and medical research laboratories, and by patients at home under physician supervision.

Baxter manufactures products in 27 countries and sells them in more than 100, with approximately 60% of its sales generated outside the United States. The company has its own direct sales force and also sells products to and through independent distributors, drug wholesalers and specialty pharmacy or homecare companies. In 2010, Baxter's global sales totaled approximately $12.8 billion. At year-end 2010, Baxter employed approximately 48,000 people worldwide.

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Baxter operates in two business segments¹:

The BioScience business is a leading manufacturer of recombinant and plasma-based proteins to treat hemophilia and other bleeding disorders. The business also produces plasma-based therapies to treat immune deficiencies, alpha-1 antitrypsin deficiency, burns and shock, and other chronic and acute blood-related conditions; products for regenerative medicine, such as biologics that stop bleeding and seal wounds in surgery; and select vaccines.

The Medical Products business manufactures products used in the delivery of fluids and drugs to patients. These include intravenous (IV) solutions and administration sets, premixed drugs and drug-reconstitution systems, IV nutrition products, infusion pumps, and inhalation anesthetics. The business also provides products and services related to pharmacy compounding, drug formulation and packaging technologies. In addition, the business is a leading provider of products and services for peritoneal dialysis (PD), a home-based therapy for people with end-stage kidney disease, and other products used in dialysis therapy.

While no single company competes with Baxter in all of its businesses, Baxter faces competition in each of its segments from international and domestic healthcare companies of all sizes. Consolidation in the company's customer base and by its competitors, along with global efforts toward healthcare cost containment, continue to exert pricing and market share pressures worldwide. Sales of Baxter's products also are dependent, in part, on the availability of reimbursement by government payers as well as private insurers.

Investment in research and development (R&D) is essential to Baxter's future growth and its ability to remain competitive in all of its businesses. The company's R&D spending in 2010 was $915 million.

Baxter's products, facilities and operations are subject to regulation by the U.S. Food and Drug Administration (FDA) and other regulatory authorities worldwide. These agencies administer requirements covering the testing, safety, efficacy, manufacturing, labeling, promotion and advertising, distribution and post-market surveillance of Baxter's products. See the Safety section for more information about complying with government regulations.

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Prior to January 1, 2011, Baxter operated in three reportable segments. In October 2010, the company announced the combination of its Medication Delivery and Renal businesses into a single global business, Medical Products. Effective January 1, 2011, the company changed its segment presentation to reflect this new structure.