prothrombin

For all of the benefit that biologic drugs provide as treatments for chronic conditions, these medications also require chronic dosing by injection or infusion. Biotech companies have been pursuing ways to hit the same targets as biologics, but with drugs that can be dosed orally. Orbis Medicines aims to do so with peptide-based therapies and it’s now out of stealth to advance its technology. Copenhagen-based Orbis launched Thursday backed by €26 million (about $28 million) in seed financing led by Novo Holdings and Forbion. Peptides are chains of amino acids. They can bind to targets that are challenging for small molecules, making them attractive for drug research, said Morten Døssing, partner at Novo Holdings and chair of Orbis’s board of directors. But the hurdle for developing peptides in oral formulations is their poor oral bioavailability. The gut is a harsh environment that degrades proteins and peptides. Even if a peptide survives the digestive ecosystem, its size—larger than a small molecule—makes it difficult to pass through intestinal walls. Consequently, too little of the peptide makes into the bloodstream to offer a therapeutic effect. Orbis’s peptide drugs are macrocycles, compounds that take on a ring shape whose larger surface area gives the molecule versatility in binding to various targets. These compounds come from Orbis’s technology platform, which enables the design of macrocycles with desired properties, such as oral bioavailability and cellular permeability to address targets inside of cells. Macrocyclic peptides have already reached the clinic in the hands of some big pharmaceutical companies. Merck is in late-stage clinical development with compound that inhibits the liver protein PCSK9 to treat an inherited form of high cholesterol. Johnson & Johnson has reached pivotal testing with an orally administered peptide for treating plaque psoriasis. While acknowledging that the Merck and J&J candidates have advanced the field of oral peptides drug research, Døssing noted that they are the products of years of chemistry R&D. Compared to conventional methods that yield tens of compounds against a given target, Orbis’s technology can make as many as 100,000 compounds, and do so much faster, he said. The technology tests those compounds, leveraging machine learning-techniques to predict the next set of compounds to make. Døssing describes the technology as a highly automated chemical synthesis and screening platform. What would take months or even years with conventional methods can be done in weeks with the Orbis technology. He claims this platform can produce drug candidates better suited for oral delivery and cellular permeability. “They are smaller, cell permeable, and we can make them at scale,” Døssing said. “We see us as being very different from other companies in this space.” Orbis is based on research from its scientific co-founders, Christian Heinis and Sevan Habeshian, professors at the Swiss Federal Institute of Technology in Lausanne. Heinis is also a co-founder of Bicycle Therapeutics, a Cambridge, U.K-based company developing peptide-based drugs for cancer. Its drugs are comprised of peptides arranged in a circular shape resembling a wheel, which the company calls Bicycles. While the company is making progress, Døssing said Bicycles are still relatively large in size, continuing to pose challenges for oral delivery. Heinis has continued his research with macrocycles, leading to compounds that are smaller and better suited for oral dosing. Orbis was founded in 2021 by the Seeds Investment team of Novo Holdings, based on the scientist’s research. João Ribas, principal of the Seeds Investment team and Orbis’s interim chief business officer, said that as investors, the firm has looked at macrocycles for some time. Heinis’s work solves challenging problems for developing macrocycle drugs, he said. Late last year, Nature Chemical Biology published a paper describing the application of the Orbis technology to the disease target thrombin, an enzyme involved in clotting. Scientists were able to synthesize 8,448 cyclic peptides, proving it can deliver orally available peptides against a given target. Orbis is keeping mum on specific disease targets for now. But speaking generally, Døssing said Orbis is looking to address validated targets currently addressed by antibody drugs. In addition to the inconvenient dosing by subcutaneous injection or intravenous infusion, these medicines also require a cold supply chain. “Having an antibody-based therapy, subcu or IV dosing is not what the patient wants,” Døssing said. “If you can convert an antibody therapy to an oral macrocycle format, it’s a great opportunity.” Orbis will use the financing to continue to develop its macrocycle technology, called nGen, and building its pipeline of drug candidates, called nCycles. Døssing declined to offer any timelines for bringing an nCycle into the clinic. The startup’s launch comes as the macrocycle field heats up. Merck is pursuing more macrocyclic drugs under a recently announced collaboration with Unnatural Products focused on an undisclosed oncology target. Meanwhile, Astellas Pharma is pursuing macrocyclic peptide drugs for cancer under a partnership with PeptiDream, which has a peptide discovery platform technology.

Fourth-quarter sales from continuing operations of $3.89 billion increased 4% on a reported basis and 3% on a constant currency basis1 Fourth-quarter U.S. GAAP diluted earnings per share (EPS) from continuing operations of $0.14 and adjusted diluted EPS from continuing operations of $0.88 Full-year sales from continuing operations of $14.81 billion increased 2% on a reported basis and 3% on a constant currency basis Full-year U.S. GAAP diluted EPS (loss) from continuing operations of ($0.15) and adjusted diluted EPS from continuing operations of $2.60 DEERFIELD, Ill.--(BUSINESS WIRE)-- Baxter International, Inc. (NYSE:BAX), a global medtech leader, today reported results for the fourth quarter and full year ended Dec. 31, 2023, and provided its financial guidance for full-year and first-quarter 2024. “Baxter’s performance in 2023 reflects our building momentum as we executed upon several strategic initiatives designed to enhance our future performance, including the implementation of a new operating model, the sale of our BioPharma Solutions business and steady progress on the proposed separation of our Kidney Care segment,” said José (Joe) E. Almeida, chair, president and chief executive officer. “Results for the fourth quarter and full year reflect solid demand for a range of our medically essential products, as well as continued improvement in the macroeconomic and supply chain environment. We plan to build on this momentum in 2024 as our dedicated employees work to advance Baxter’s ongoing business transformation and prepare for the proposed separation of our Kidney Care segment.” Fourth-Quarter Financial Results Worldwide sales from continuing operations in the fourth quarter totaled approximately $3.89 billion, an increase of 4% on a reported basis and 3% on a constant currency basis. Continuing operations exclude Baxter’s BioPharma Solutions (BPS) business, which was acquired by Advent International and Warburg Pincus at the close of the third quarter of 2023. U.S. sales from continuing operations in the fourth quarter totaled approximately $1.82 billion, increasing 2% on a reported basis. International sales from continuing operations in the fourth quarter totaled approximately $2.07 billion, an increase of 6% on a reported basis and 4% at constant currency rates. Fourth-quarter sales performance exceeded Baxter’s previously announced guidance, driven by better-than-expected sales in the company’s Medical Products and Therapies, Kidney Care and Pharmaceuticals segments. Sales growth in the quarter was driven by strong performance in the Healthcare Systems and Technologies segment, reflecting strength in Care and Connectivity Solutions, as well as increased demand for Medical Products and Therapies and Pharmaceuticals products. Growth in the quarter was partially offset by a decline in Kidney Care sales, reflecting a difficult comparison to the prior year period due in part to certain discrete items that benefited the prior year as well as the impact of lower sales in select markets outside of the U.S. Please see the attached schedules accompanying this press release for additional details on sales performance in the quarter, including breakouts by Baxter’s segments. For the fourth quarter, total net income attributable to Baxter on a U.S. GAAP (Generally Accepted Accounting Principles) basis was $245 million, or $0.48 per diluted share. Total U.S. GAAP diluted EPS includes $0.14 from continuing operations and $0.34 from discontinued operations. These results include special items totaling $189 million, primarily related to the impact of intangible amortization, tax matters, separation-related costs and investment impairments, among other factors. On an adjusted basis, income from continuing operations was $0.88 per diluted share. Full-Year Financial Results Baxter’s 2023 worldwide sales from continuing operations totaled $14.81 billion, an increase of 2% on a reported basis and 3% on a constant currency basis. Sales from continuing operations in the U.S. totaled $7.00 billion, growing 1% on a reported basis. International sales from continuing operations of $7.81 billion grew 3% on a reported basis and 4% at constant currency rates. The accompanying schedules include additional details on sales performance, including breakouts by Baxter’s segments. For full-year 2023, net income attributable to Baxter on a U.S. GAAP basis totaled $2.66 billion, or $5.25 per diluted share. Total U.S. GAAP diluted EPS (loss) includes ($0.15) from continuing operations and $5.40 from discontinued operations. These results include special items totaling $1.18 billion after-tax, which primarily reflected the gain on the divestiture of Baxter’s BPS business offset by intangible amortization and business optimization costs, among other items. On an adjusted basis, 2023 income from continuing operations totaled $2.60 per diluted share. Total adjusted net income attributable to Baxter totaled $1.48 billion or $2.92 per diluted share, which included earnings of $0.32 from discontinued operations. For the full year, Baxter generated $1.70 billion in operating cash flow from continuing operations and $1.01 billion in free cash flow (operating cash flow from continuing operations less capital expenditures of $692 million). “Consistent with our focus on advancing Baxter’s transformation journey and creating value for our stakeholders, we made significant progress in 2023 in line with our capital allocation priorities,” said Joel Grade, executive vice president and chief financial officer. “Most notably, net after-tax proceeds from the sale of our BioPharma Solutions business were allocated towards debt repayment. During 2024, we will remain focused on deleveraging while also significantly enhancing our focus on cash flow generation.” Kidney Care Separation Update Baxter’s preparations are progressing for the proposed separation of its Kidney Care segment into a standalone company to be named Vantive. As a standalone entity, Vantive is expected to benefit from a heightened strategic focus and the ability to pursue its unique investment priorities, to emerge better positioned to accelerate growth and innovation, and to create incremental value for its patients, clinicians, investors, and other stakeholder communities. Chris Toth, executive vice president and group president, Kidney Care, and designated chief executive officer of Vantive, continues to build out his senior management team. Recently, he named Matt Harbaugh as vice president, Finance, Kidney Care and designated chief financial officer of Vantive. Mr. Harbaugh was previously chief financial officer at NuVasive Inc. Recent Highlights2 Baxter continues to advance key strategic priorities in pursuit of its Mission to Save and Sustain Lives. At the end of the third quarter of 2023, the company completed the divestiture of its BPS business, further streamlining its strategic focus in line with the transformational initiatives outlined at the start of 2023. Among other 2023 highlights across Baxter’s business segments: Healthcare Systems and Technologies Announced the launch of digital image capture capability for eye exams using Baxter’s current Welch Allyn PanOptic Plus Ophthalmoscope. The iExaminer Pro System adds the ability for a clinician to connect a smart device to capture eye images for further examination. When used with the iExaminer Pro app, clinicians can save and share images for tracking and trending, and initiate more informed consultations with specialists. Launched its next-generation Hillrom Progressa+ ICU bed in the U.S. Progressa+ offers new technology and features to help address complex critical care needs, including in-bed pulmonary therapies designed to aid in the reduction of pulmonary complications, improved protection of the patient’s skin to help prevent pressure injuries, and support for early mobility protocols. Baxter plans to continue launching Progressa+ in additional global markets in 2024. Commercially launched the new Baxter Patient Warming System, which minimizes risks associated with forced air warming, reduces noise and waste in the operating room, and lessens the burden on clinician workflows. The updated system eliminates the need for disposables, as the warming technology is built into the table pad and employs reusable conductive warming blankets that can reach temperatures of 43 degrees Celsius. Launched SpotConnect, an electronic medical records (EMR) application for the Welch Allyn Spot Vision Screener device. Spot Vision Screener allows healthcare providers to detect and treat six vision risk factors in children. SpotConnect helps streamline clinical workflows through secure EMR connectivity and allows access to screening results across the care team. Introduced the ReadyConnect System for Baxter's Centrella Smart+ Bed. This innovative system delivers reliable, cable-free connectivity between the hospital bed and most nurse call systems on the market, and requires no wireless network, incremental server software licenses, or other IT resources from the customer. Medical Products and Therapies Announced the FDA Premarket Approval and subsequent U.S. launch of PERCLOT Absorbable Hemostatic Powder. PERCLOT is a passive, absorbable hemostatic powder that is ready to use and designed for patients with intact coagulation to address mild bleeding. This represents Baxter's first passive hemostat in the U.S. market, broadening Baxter's portfolio to include a full range of active and passive solutions. Launched Floseal + Recothrom, the first and only active flowable hemostat with a recombinant thrombin, resulting in 1.5 times faster preparation. Floseal + Recothrom has a thrombin component manufactured using recombinant DNA technology, and therefore contains no human blood components, eliminating reliance on human blood donations. Advanced its intravenous (IV) bag recycling program pilot in the U.S. in conjunction with Chicago’s Northwestern Memorial Hospital, successfully demonstrating proof of concept with more than six tons of plastic IV bag waste diverted from landfill. Baxter is now expanding the pilot program to support scalability. Pharmaceuticals Launched ZOSYN (piperacillin and tazobactam) in the U.S. Zosyn premix is indicated for the treatment of multiple infections caused by susceptible bacteria and is available in Baxter's proprietary single-dose Galaxy containers, which enable premixed medications to have a longer shelf life. Its frozen premix formulation helps support patient safety, simplify medication preparation and improve operational efficiencies. Launched a range of additional injectable pharmaceutical molecules, including the anti-infective daptomycin premix, antiviral foscarnet premix, oncolytic bendamustine and anti-hypertensive norepinephrine in the U.S., and the anti-infective vancomycin in Australia. Collectively, these injectables reinforce Baxter’s focus on differentiated molecules and expand the Pharmaceuticals segment portfolio in critical therapeutic areas. Kidney Care Announced new data at Kidney Week indicating Baxter’s Sharesource remote patient management digital platform, when used with an automated peritoneal dialysis (PD) system, is associated with a 77% reduction in the risk of PD technique failure. Announced a collaborative research agreement with life sciences company Miromatrix to help support additional treatment options for patients with acute liver failure. Corporate Responsibility Baxter furthers its aspirations as a healthcare leader through responsible corporate citizenship and the dedication of its employees to doing business the right way. In 2023, Baxter continued to advance its 2030 Corporate Responsibility Commitment, featuring 10 goals that support an overarching pledge to “Empower our Patients,” “Protect our Planet” and “Champion our People and Communities.” The company’s corporate responsibility goals align with certain of the United Nations Sustainable Development Goals (UN SDGs) and 2030 Agenda with a global blueprint for achieving a more sustainable future. In line with Baxter’s commitment to providing transparent information on the environmental, social and governance topics most important to its stakeholders, the company published its first report against the Task Force on Climate-related Financial Disclosures (TCFD) framework, which was recently incorporated into the International Sustainability Standards Board Standards. The TCFD framework is designed to help improve climate-related disclosure that is relevant to Baxter's investors and other key stakeholders in the areas of governance, strategy, risk management, and metrics and targets. Moving forward, Baxter expects to report against the TCFD framework in the company's annual Corporate Responsibility Report. Baxter continues to be recognized for its leadership in corporate responsibility and workplace excellence. In 2023, the company was named to the Dow Jones Sustainability Index (DJSI) North America, which has included Baxter each year since it launched in 2005. Additionally, Baxter was included in 2023 on the FTSE Russell's FTSE4Good Index Series and JUST Capital's America's Most JUST Companies list, among numerous other regional and country-specific recognitions across the globe. Learn more about Baxter's corporate responsibility initiatives here. 2024 Financial Outlook For full-year 2024: Baxter expects sales growth of approximately 2% on both a reported and constant currency basis. The company expects adjusted earnings, before special items, of $2.85 to $2.95 per diluted share. For first-quarter 2024: The company expects sales growth of approximately 1% on a reported basis and 1% to 2% on a constant currency basis. The company expects adjusted earnings, before special items, of $0.59 to $0.62 per diluted share. A webcast of Baxter’s fourth-quarter 2023 conference call for investors can be accessed live from a link in the Investor Relations section of the company’s website at beginning at 7:30 a.m. CST on Feb. 8, 2024. Please see for more information regarding this and future investor events and webcasts. About Baxter Every day, millions of patients, caregivers and healthcare providers rely on Baxter’s leading portfolio of diagnostic, critical care, kidney care, nutrition, hospital and surgical products used across patient homes, hospitals, physician offices and other sites of care. For more than 90 years, we’ve been operating at the critical intersection where innovations that save and sustain lives meet the healthcare providers who make it happen. With products, digital health solutions and therapies available in more than 100 countries, Baxter’s employees worldwide are now building upon the company’s rich heritage of medical breakthroughs to advance the next generation of transformative healthcare innovations. To learn more, visit and follow us on X/Twitter, LinkedIn and Facebook. Non-GAAP Financial Measures Non-GAAP financial measures may enhance an understanding of the company’s operations and may facilitate an analysis of those operations, particularly in evaluating performance from one period to another. Management believes that non-GAAP financial measures, when used in conjunction with the results presented in accordance with U.S. GAAP and the company’s reconciliations to corresponding U.S. GAAP financial measures (which are included in the tables accompanying this release), may enhance an investor’s overall understanding of the company’s past financial performance and prospects for the future. Management uses these non-GAAP measures internally in financial planning, to monitor business unit performance, and, in some cases, for purposes of determining incentive compensation. This information should be considered in addition to, and not as substitutes for, information prepared in accordance with U.S. GAAP. Net sales growth on a constant currency basis is a non-GAAP financial measure that provides information on the percentage change in net sales growth as if foreign currency exchange rates had remained constant between the prior and current periods. Other non-GAAP financial measures included in this release and the accompanying tables (including within the tables that provide the company’s detailed reconciliations to the corresponding U.S. GAAP financial measures) are: adjusted gross margin, adjusted selling, general, and administrative expenses, adjusted research and development expenses, adjusted other operating expense (income), net, adjusted operating income (loss), adjusted other income (expense), net, adjusted income (loss) from continuing operations before income taxes, adjusted income tax expense (benefit), adjusted income (loss) from continuing operations, adjusted income (loss) from discontinued operations, adjusted net income (loss), adjusted net income (loss) attributable to Baxter stockholders, adjusted diluted earnings per share from continuing operations, adjusted diluted earnings per share from discontinued operations and adjusted diluted earnings per share. Those non-GAAP financial measures exclude the impact of special items. For the quarter and full year ended December 31, 2023 and 2022, special items for one or more periods included intangible asset amortization, business optimization charges, acquisition and integration costs, separation-related costs, expenses related to European medical devices regulation, certain legal matters, goodwill and long-lived asset impairments, non-marketable investment impairments, a pension curtailment gain, product-related items, a loss on a product divestiture arrangement, a loss on a subsidiary liquidation, the reclassification of a cumulative translation loss to earnings upon the substantial liquidation of a subsidiary, the gain on the sale of the BPS business and certain tax matters. These items are excluded because they are highly variable or unusual and of a size that may substantially impact the company’s reported operations for a period. Additionally, intangible asset amortization is excluded as a special item to facilitate an evaluation of current and past operating performance and is consistent with how management and the company’s Board of Directors assess performance. This release and the accompanying tables also include free cash flow, a non-GAAP financial measure that Baxter defines as operating cash flow less capital expenditures. Free cash flow is used by management and the company’s Board of Directors to evaluate the cash generated from Baxter’s operating activities each period after deducting its capital spending. This release also includes forecasts of certain of the aforementioned non-GAAP measures on a forward-looking basis as part of the company’s financial outlook for upcoming periods. Baxter calculates forward-looking non-GAAP financial measures based on forecasts that omit certain amounts that would be included in GAAP financial measures. For instance, forward-looking adjusted diluted EPS guidance excludes potential charges or gains that would be reflected as non-GAAP adjustments to earnings. Baxter provides forward-looking adjusted diluted EPS guidance because it believes that this measure provides useful information for the reasons noted above. Baxter has not provided reconciliations of forward-looking adjusted EPS guidance to forward-looking GAAP EPS guidance because the company is unable to predict with reasonable certainty the impact of legal proceedings, future business optimization actions, separation-related costs, integration-related costs, asset impairments and unusual gains and losses, and the related amounts are unavailable without unreasonable efforts (as specified in the exception provided by Item 10(e)(1)(i)(B) of Regulation S-K). In addition, Baxter believes that such reconciliations would imply a degree of precision and certainty that could be confusing to investors. Such items could have a substantial impact on GAAP measures of financial performance. Forward-Looking Statements This release includes forward-looking statements concerning the company’s financial results (including the outlook for first-quarter and full-year 2024) and business development and regulatory activities. These forward-looking statements are based on assumptions about many important factors, including the following, which could cause actual results to differ materially from those in the forward-looking statements: the company’s ability to execute and complete strategic initiatives, asset dispositions and other transactions and development activities, including the proposed separation of the company’s Kidney Care business, the company’s plans to simplify its manufacturing footprint and the timing for such transactions, the ability to satisfy any applicable conditions and the expected proceeds, consideration and benefits; failure to accurately forecast or achieve the company’s short- and long-term financial performance and goals (including with respect to the company’s strategic initiatives and other actions) and related impacts on our liquidity; the company’s ability to execute on its capital allocation plans, including the company’s debt repayment plans, the timing and amount of any dividends, share repurchases and divestiture proceeds and the capital structure of the company to be formed as a result of the proposed spinoff of our Kidney Care business (and the resulting capital structure for the remaining company); the company’s ability to successfully integrate acquisitions; the impact of global economic conditions (including, among other things, inflation levels, interest rates, financial market volatility, banking crises, the potential for a recession, the war in Ukraine, the conflict in the Middle East (including recent attacks on merchant ships in the Red Sea), tensions between China and Taiwan, and the potential for escalation of these conflicts, the related economic sanctions being imposed globally in response to the conflicts and potential trade wars and global public health crises, pandemics and epidemics, such as the COVID-19 pandemic, or the anticipation of any of the foregoing, on the company’s operations and on the company’s employees, customers, suppliers, and foreign governments in countries in which the company operates; downgrades to the company’s credit ratings or ratings outlooks, and the impact on the company’s funding costs and liquidity; product development risks, including satisfactory clinical performance and obtaining and maintaining required regulatory approvals (including as a result of evolving regulatory requirements or the withdrawal or resubmission of any pending applications), the ability to manufacture at appropriate scale and the general unpredictability associated with the product development cycle; product quality or patient safety issues leading to product recalls, withdrawals, launch delays, warning letters, import bans, sanctions, seizures, litigation or declining sales, including the focus on evaluating product portfolios for the potential presence or formation of nitrosamines; future actions of, or failures to act or delays in acting by, FDA, the European Medicines Agency or any other regulatory body or government authority (including the SEC, Department of Justice or the Attorney General of any State) that could delay, limit or suspend product development, manufacturing or sale or result in seizures, recalls, injunctions, monetary sanctions or criminal or civil liabilities; demand and market acceptance risks for, and competitive pressures related to, new and existing products, challenges with the company’s ability to accurately predict changing consumer preferences and future expenditures and inventory levels, and challenges with the company’s ability to monetize new and existing products and services, the impact of those products on quality and patient safety concerns and the need for ongoing training and support for our products; breaches, including by cyber-attack, data leakage, unauthorized access or theft, or failures of or vulnerabilities in, the company’s information technology systems or products; the continuity, availability and pricing of acceptable raw materials and component parts, the company’s ability to pass some or all of these costs to the company’s customers through recent price increases or otherwise, and the related continuity of the company’s manufacturing and distribution and those of the company’s suppliers; inability to create additional production capacity in a timely manner or the occurrence of other manufacturing, sterilization or supply difficulties, including as a result of natural disaster, war, terrorism, global public health crises and epidemics/pandemics, regulatory actions or otherwise; the company’s ability to finance and develop new products or enhancements on commercially acceptable terms or at all; loss of key employees, the occurrence of labor disruptions (including as a result of labor disagreements under bargaining agreements or national trade union agreements or disputes with works councils) or the inability to attract, develop, retain and engage employees; failures with respect to the company’s quality, compliance or ethics programs; future actions of third parties, including third-party payers and the company’s customers and distributors (including GPOs and IDNs); changes to legislation and regulation and other governmental pressures in United States and globally, including the cost of compliance and potential penalties for purported noncompliance thereof, including new or amended laws, rules and regulations as well as the impact of healthcare reform and its implementation, suspension, repeal, replacement, amendment, modification and other similar actions undertaken by the United States or foreign governments, including with respect to pricing, reimbursement, taxation and rebate policies; the outcome of pending or future litigation; the impact of competitive products and pricing, including generic competition, drug reimportation and disruptive technologies; global regulatory, trade and tax policies, including with respect to climate change and other sustainability matters; the ability to protect or enforce the company’s patents or other proprietary rights (including trademarks, copyrights, trade secrets and know-how) or where the patents of third parties prevent or restrict the company’s manufacture, sale or use of affected products or technology; the impact of any goodwill, intangible asset or other long-lived asset impairments on the company’s operating results; fluctuations in foreign exchange and interest rates; any changes in law concerning the taxation of income (whether with respect to current or future tax reform); actions by tax authorities in connection with ongoing tax audits; and other risks identified in Baxter’s most recent filings on Form 10-K and Form 10-Q and other SEC filings, all of which are available on Baxter’s website. Baxter does not undertake to update its forward-looking statements unless otherwise required by the federal securities laws. Baxter, Centrella, Floseal, iExaminer Pro, PanOptic Plus, PerClot, Progressa+, Recothrom, ReadyConnect, Sharesource, Spot Vision Screener, SpotConnect, Welch Allyn and Zosyn are trademarks of Baxter International Inc. Any other trademarks or product brands appearing herein are the property of their respective owners. ________________________________ 1 Sales growth at constant currency rates and adjusted diluted EPS are non-GAAP financial measures. See the “Non-GAAP Financial Measures” section below for information about the non-GAAP financial measures included in this release and see the accompanying tables to this press release for reconciliations of those non-GAAP measures to the corresponding U.S. GAAP measures. 2 See links to original press releases for additional product information. BAXTER INTERNATIONAL INC. Consolidated Statements of Income (Loss) (unaudited) (in millions, except per share and percentage data) Three Months Ended December 31, 2023 2022 Change NET SALES $ 3,885 $ 3,745 4% COST OF SALES 2,413 2,357 2% GROSS MARGIN 1,472 1,388 6% % of Net Sales 37.9 % 37.1 % 0.8 pts SELLING, GENERAL AND ADMINISTRATIVE EXPENSES 985 901 9% % of Net Sales 25.4 % 24.1 % 1.3 pts RESEARCH AND DEVELOPMENT EXPENSES 172 154 12% % of Net Sales 4.4 % 4.1 % 0.3 pts GOODWILL IMPAIRMENTS — 27 NM OTHER OPERATING INCOME, NET (14 ) 16 NM OPERATING INCOME (LOSS) 329 290 13% % of Net Sales 8.5 % 7.7 % 0.8 pts INTEREST EXPENSE, NET 73 117 (38) % OTHER (INCOME) EXPENSE, NET 18 11 64% INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES 238 162 47% INCOME TAX BENEFIT 165 18 NM % of Income (Loss) from Continuing Operations Before Income Taxes 69.3 % 11.1 % NM INCOME (LOSS) FROM CONTINUING OPERATIONS 73 144 (49) % INCOME FROM DISCONTINUED OPERATIONS, NET OF TAX 173 41 NM NET INCOME (LOSS) 246 185 33% NET INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS 1 4 (75) % NET INCOME (LOSS) ATTRIBUTABLE TO BAXTER STOCKHOLDERS $ 245 $ 181 35% INCOME (LOSS) FROM CONTINUING OPERATIONS PER COMMON SHARE Basic $ 0.14 $ 0.28 (50)% Diluted $ 0.14 $ 0.28 (50)% INCOME FROM DISCONTINUED OPERATIONS PER COMMON SHARE Basic $ 0.34 $ 0.08 NM Diluted $ 0.34 $ 0.08 NM NET INCOME (LOSS) PER COMMON SHARE Basic $ 0.48 $ 0.36 33% Diluted $ 0.48 $ 0.36 33% WEIGHTED-AVERAGE NUMBER OF SHARES OUTSTANDING Basic 507 504 Diluted 509 507 ADJUSTED OPERATING INCOME (excluding special items)¹ $ 630 $ 595 6% ADJUSTED INCOME FROM CONTINUING OPERATIONS (excluding special items)¹ $ 449 $ 399 13% ADJUSTED INCOME FROM DISCONTINUED OPERATIONS (excluding special items)1 $ (14 ) $ 49 NM ADJUSTED NET INCOME ATTRIBUTABLE TO BAXTER STOCKHOLDERS (excluding special items)¹ $ 434 $ 444 (2)% ADJUSTED DILUTED EPS FROM CONTINUING OPERATIONS (excluding special items)¹ $ 0.88 $ 0.78 13% ADJUSTED DILUTED EPS FROM DISCONTINUED OPERATIONS (excluding special items)¹ $ (0.03 ) $ 0.10 NM ADJUSTED DILUTED EPS (excluding special items)¹ $ 0.85 $ 0.88 (3)% 1 Refer to page 13 for a description of the adjustments and a reconciliation to U.S. GAAP measures. NM - Not Meaningful BAXTER INTERNATIONAL INC. Description of Adjustments and Reconciliation of U.S. GAAP to Non-GAAP Measures (unaudited, in millions) The company’s U.S. GAAP results for the three months ended December 31, 2023 included special items which impacted the U.S. GAAP measures as follows: Gross Margin Selling, General and Administrative Expenses Other Operating Income, Net Operating Income (Loss) Other (Income) Expense, Net Income (Loss) From Continuing Operations Before Income Taxes Income Tax Expense (Benefit) Income (Loss) From Continuing Operations Income From Discontinued Operations, Net of Tax Net Income (Loss) Net Income (Loss) Attributable to Baxter Stockholders Diluted Earnings Per Share from Continuing Operations Diluted Earnings Per Share from Discontinued Operations Diluted Earnings Per Share Reported $ 1,472 $ 985 $ (14 ) $ 329 $ 18 $ 238 $ 165 $ 73 $ 173 $ 246 $ 245 $ 0.14 $ 0.34 $ 0.48 Reported percent of net sales (or effective tax rate for income tax expense (benefit)) 37.9 % 25.4 % (0.4 ) % 8.5 % 0.5 % 6.1 % 69.3 % 1.9 % 4.5 % 6.3 % 6.3 % Intangible asset amortization 119 (52 ) — 171 — 171 47 124 — 124 124 0.24 0.00 0.24 Business optimization items1 22 (4 ) — 26 — 26 35 (9 ) (1 ) (10 ) (10 ) (0.02 ) 0.00 (0.02 ) Acquisition and integration items2 — (3 ) 5 (2 ) — (2 ) — (2 ) — (2 ) (2 ) 0.00 0.00 0.00 Separation-related costs3 7 (95 ) — 102 — 102 29 73 (2 ) 71 71 0.14 0.00 0.14 European medical devices regulation4 10 — — 10 — 10 1 9 — 9 9 0.02 0.00 0.02 Legal matters5 — (2 ) 8 (6 ) — (6 ) (1 ) (5 ) — (5 ) (5 ) (0.01 ) 0.00 (0.01 ) Long-lived asset impairments6 — — — — — — 4 (4 ) — (4 ) (4 ) (0.01 ) 0.00 (0.01 ) Investment impairments7 — — — — (29 ) 29 (5 ) 34 — 34 34 0.07 0.00 0.07 Gain on BPS Sale8 — — — — — — — — 15 15 15 0.00 0.03 0.03 Tax matters12 — — — — — — (156 ) 156 (199 ) (43 ) (43 ) 0.31 (0.39 ) (0.08 ) Adjusted $ 1,630 $ 829 $ (1 ) $ 630 $ (11 ) $ 568 $ 119 $ 449 $ (14 ) $ 435 $ 434 $ 0.88 $ (0.03 ) $ 0.85 Adjusted percent of net sales (or effective tax rate for income tax expense (benefit)) 42.0 % 21.3 % 0.0 % 16.2 % (0.3 )% 14.6 % 21.0 % 11.6 % (0.4 )% 11.2 % 11.2 % Reported Adjusted Income (loss) from continuing operations $ 73 $ 449 Less: Net income attributable to noncontrolling interests 1 1 Income (loss) from continuing operations attributable to Baxter stockholders $ 72 $ 448 The company’s U.S. GAAP results for the three months ended December 31, 2022 included special items which impacted the U.S. GAAP measures as follows: Gross Margin Selling, General and Administrative Expenses Research and Development Expenses Goodwill Impairment Other Operating Expense, Net Operating Income (Loss) Income (Loss) From Continuing Operations Before Income Taxes Income Tax Expense (Benefit) Income (Loss) From Continuing Operations Income From Discontinued Operations Net Income (Loss) Net Income (Loss) Attributable to Baxter Stockholders Diluted Earnings Per Share from Continuing Operations Diluted Earnings Per Share from Discontinued Operations Diluted Earnings Per Share Reported $ 1,388 $ 901 $ 154 $ 27 $ 16 $ 290 $ 162 $ 18 $ 144 $ 41 $ 185 $ 181 $ 0.28 $ 0.08 $ 0.36 Reported percent of net sales (or effective tax rate for income tax expense (benefit)) 37.1 % 24.1 % 4.1 % 0.7 % 0.4 % 7.7 % 4.3 % 11.1 % 3.8 % 1.1 % 4.9 % 4.8 % Intangible asset amortization 122 (53 ) — — — 175 175 31 144 — 144 144 0.28 0.00 0.28 Business optimization items1 7 (23 ) 1 — — 29 29 8 21 — 21 21 0.04 0.00 0.04 Acquisition and integration items2 (1 ) (27 ) 1 — 5 20 20 17 3 — 3 3 0.01 0.00 0.01 Separation-related costs3 — (7 ) — — — 7 7 3 4 5 9 9 0.01 0.01 0.02 European medical devices regulation4 13 — — — — 13 13 4 9 — 9 9 0.02 0.00 0.02 Long-lived asset impairments6 12 — — — — 12 12 5 7 — 7 7 0.01 0.00 0.01 Goodwill impairments9 — — — (27 ) — 27 27 — 27 — 27 27 0.05 0.00 0.05 Product-related items 10 1 — — — — 1 1 — 1 — 1 1 0.00 0.00 0.00 Loss on subsidiary liquidation11 — — — — (21 ) 21 21 4 17 — 17 17 0.03 0.00 0.03 Tax matters12 — — — — — — — (22 ) 22 3 25 25 0.04 0.01 0.05 Adjusted $ 1,542 $ 791 $ 156 $ — $ — $ 595 $ 467 $ 68 $ 399 $ 49 $ 448 $ 444 $ 0.78 $ 0.10 $ 0.88 Adjusted percent of net sales (or effective tax rate for income tax expense) 41.2 % 21.1 % 4.2 % 0.0 % 0.0 % 15.9 % 12.5 % 14.6 % 10.7 % 1.3 % 12.0 % 11.9 % Reported Adjusted Income (loss) from continuing operations $ 144 $ 399 Less: Net income attributable to noncontrolling interests 4 4 Income (loss) from continuing operations attributable to Baxter stockholders $ 140 $ 395 1 The company’s results in 2023 and 2022 included charges associated with its execution of programs to optimize its organization and cost structure. In 2023, these restructuring and other business optimization costs included actions related to its decision to close one its U.S.-based manufacturing facilities this year. In 2022, restructuring and business optimization costs included actions related to its integration of Hillrom. 2 The company’s results in 2023 and 2022 included acquisition and integration-related items comprised of Hillrom integration expenses and net gains from changes in the fair value of contingent consideration liabilities. 3 The company's results in 2023 and 2022 included separation-related costs primarily related to external advisors supporting its activities to prepare for the proposed separation of its Kidney Care segment, which are reported in continuing operations. The company's results in 2023 and 2022 also included separation-related costs related to the sale of its BioPharma Solutions (BPS) business, which are reported in discontinued operations. 4 The company’s results in 2023 and 2022 included incremental costs to comply with the European Union’s medical device regulations for previously registered products, which primarily consist of contractor costs and other direct third-party costs. The company considers the adoption of these regulations to be a significant one-time regulatory change and believes that the costs of initial compliance for previously registered products over the implementation period are not indicative of its core operating results. 5 The company's results in 2023 included proceeds received, net of legal fees, from a settlement related to an intellectual property dispute. 6 The company's results in 2022 included impairments of developed technology intangible assets. 7 The company's results in 2023 included impairments of non-marketable investments in several early-stage companies consisting of noncash impairment write-downs. 8 The company's results in 2023 included adjustments to its third quarter 2023 gain from the sale of its BPS business, reported in discontinued operations, related to final working capital and transaction cost amounts. 9 The company's results in 2022 included goodwill impairments charges related to a reporting unit acquired in its December 2021 acquisition of Hillrom. 10 The company's results in 2022 included charges related to warranty and remediation activities from two field corrective actions on certain of its infusion pumps. 11 The company's results in 2022 included costs related to its deconsolidation of a foreign subsidiary, including the derecognition of the related noncontrolling interest, upon its liquidation in December 2022 that was completed in connection with the company's legal entity rationalization activities. 12 The company's results in 2023 included a $199 million reallocation of income tax expense between discontinued operations and continuing operations resulting from the application of intraperiod tax allocation to the company's adjusted results during interim periods throughout the year. The company’s results in 2023 included a $22 million income tax benefit from an internal reorganization transaction related to the proposed separation of its Kidney Care segment. The company’s results in 2023 included a $21 million valuation allowance decrease and its results in 2022 included a $25 million valuation allowance increase related to its estimated recoverability of a deferred tax asset for a net asset step-up related to Swiss tax reform legislation enacted during 2019 that is amortizable as a tax deduction ratably over tax years 2025 through 2029. For more information on the company's use of non-GAAP financial measures, please see the Non-GAAP Financial Measures section of this press release. BAXTER INTERNATIONAL INC. Consolidated Statements of Income (Loss) (unaudited) (in millions, except per share and percentage data) Twelve Months Ended December 31, 2023 2022 Change NET SALES $ 14,813 $ 14,506 2% COST OF SALES 9,838 9,440 4% GROSS MARGIN 4,975 5,066 (2)% % of Net Sales 33.6 % 34.9 % (1.3 pts) SELLING, GENERAL AND ADMINISTRATIVE EXPENSES 3,946 3,859 2% % of Net Sales 26.6 % 26.6 % (0.0 pts) RESEARCH AND DEVELOPMENT EXPENSES 667 602 11% % of Net Sales 4.5 % 4.2 % 0.3 pts GOODWILL IMPAIRMENTS — 2,812 NM OTHER OPERATING INCOME, NET (28 ) 36 NM OPERATING INCOME (LOSS) 390 (2,243 ) NM % of Net Sales 2.6 % (15.5 )% 18.1 pts INTEREST EXPENSE, NET 442 395 12% OTHER (INCOME) EXPENSE, NET 51 12 NM LOSS FROM CONTINUING OPERATIONS BEFORE INCOME TAXES (103 ) (2,650 ) (96)% INCOME TAX EXPENSE (34 ) 4 NM % of Income (Loss) from Continuing Operations Before Income Taxes 33.0 % (0.2 )% 33.2 pts LOSS FROM CONTINUING OPERATIONS (69 ) (2,654 ) (97)% INCOME FROM DISCONTINUED OPERATIONS, NET OF TAX 2,732 233 NM NET INCOME (LOSS) 2,663 (2,421 ) NM NET INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS 7 12 (42)% NET INCOME (LOSS) ATTRIBUTABLE TO BAXTER STOCKHOLDERS $ 2,656 $ (2,433 ) NM INCOME (LOSS) FROM CONTINUING OPERATIONS PER COMMON SHARE Basic $ (0.15 ) $ (5.29 ) (97)% Diluted $ (0.15 ) $ (5.29 ) (97)% INCOME FROM DISCONTINUED OPERATIONS PER COMMON SHARE Basic $ 5.40 $ 0.46 NM Diluted $ 5.40 $ 0.46 NM NET INCOME (LOSS) PER COMMON SHARE Basic $ 5.25 $ (4.83 ) NM Diluted $ 5.25 $ (4.83 ) NM WEIGHTED-AVERAGE NUMBER OF SHARES OUTSTANDING Basic 506 504 Diluted 506 504 ADJUSTED OPERATING INCOME (excluding special items)¹ $ 2,123 $ 2,278 (7)% ADJUSTED INCOME (LOSS) FROM CONTINUING OPERATIONS (excluding special items)¹ $ 1,327 $ 1,548 (14)% ADJUSTED INCOME FROM DISCONTINUED OPERATIONS (excluding special items)1 $ 161 $ 236 (32)% ADJUSTED NET INCOME ATTRIBUTABLE TO BAXTER STOCKHOLDERS (excluding special items)¹ $ 1,481 $ 1,772 (16)% ADJUSTED DILUTED EPS FROM CONTINUING OPERATIONS (excluding special items)1 $ 2.60 $ 3.03 (14)% ADJUSTED DILUTED EPS FROM DISCONTINUED OPERATIONS (excluding special items)1 $ 0.32 $ 0.47 (32)% ADJUSTED DILUTED EPS (excluding special items)¹ $ 2.92 $ 3.50 (17)% 1 Refer to page 1 for a description of the adjustments and a reconciliation to U.S. GAAP measures. NM - Not Meaningful BAXTER INTERNATIONAL INC. Description of Adjustments and Reconciliation of U.S. GAAP to Non-GAAP Measures (unaudited, in millions) The company’s U.S. GAAP results for the twelve months ended December 31, 2023 included special items which impacted the U.S. GAAP measures as follows: Gross Margin Selling, General and Administrative Expenses Research and Development Expenses Other Operating Income, Net Operating Income (Loss) Other (Income) Expense, Net Income (Loss) From Continuing Operations Before Income Taxes Income Tax Expense (Benefit) Income (Loss) From Continuing Operations Income From Discontinued Operations, Net of Tax Net Income (Loss) Net Income (Loss) Attributable to Baxter Stockholders Diluted Earnings Per Share From Continuing Operations Diluted Earnings Per Share from Discontinued Operations Diluted Earnings Per Share Reported $ 4,975 $ 3,946 $ 667 $ (28 ) $ 390 $ 51 $ (103 ) $ (34 ) $ (69 ) $ 2,732 $ 2,663 $ 2,656 $ (0.15 ) $ 5.40 $ 5.25 Reported percent of net sales (or effective tax rate for income tax expense (benefit)) 33.6 % 26.6 % 4.5 % (0.2 )% 2.6 % 0.3 % (0.7 )% 33.0 % (0.5 )% 18.4 % 18.0 % 17.9 % Intangible asset amortization 445 (207 ) — — 652 — 652 153 499 — 499 499 0.98 0.00 0.98 Business optimization items1 349 (173 ) (12 ) — 534 — 534 127 407 — 407 407 0.80 0.00 0.80 Acquisition and integration items2 1 (18 ) — 19 — — — 1 (1 ) — (1 ) (1 ) 0.00 0.00 0.00 Separation-related costs3 22 (203 ) — — 225 — 225 29 196 17 213 213 0.39 0.03 0.42 European medical devices regulation4 48 — — — 48 — 48 12 36 — 36 36 0.07 0.00 0.07 Long-lived asset impairments5 267 — — — 267 — 267 66 201 — 201 201 0.40 0.00 0.40 Legal matters6 — (15 ) — 8 7 — 7 2 5 — 5 5 0.01 0.00 0.01 Investment impairments7 — — — — — (49 ) 49 — 49 — 49 49 0.10 0.00 0.10 Gain on BPS Sale8 — — — — — — — — — (2,588 ) (2,588 ) (2,588 ) 0.00 (5.09 ) (5.09 ) Tax matters15 — — — — — — — (4 ) 4 — 4 4 0.01 0.00 0.01 Adjusted $ 6,107 $ 3,330 $ 655 $ (1 ) $ 2,123 $ 2 $ 1,679 $ 352 $ 1,327 $ 161 $ 1,488 $ 1,481 $ 2.60 $ 0.32 $ 2.92 Adjusted percent of net sales (or effective tax rate for income tax expense) 41.2 % 22.5 % 4.4 % 0.0 % 14.3 % 0.0 % 11.3 % 21.0 % 9.0 % 1.1 % 10.0 % 10.0 % Reported Adjusted Income (loss) from continuing operations $ (69 ) $ 1,327 Less: Net income attributable to noncontrolling interests 7 7 Income (loss) from continuing operations attributable to Baxter stockholders $ (76 ) $ 1,320 Weighted-average diluted shares as reported 506 Effect of dilutive securities that were anti-dilutive to dilutive EPS as reported 2 Weighted-average diluted shares as adjusted 508 The company’s U.S. GAAP results for the twelve months ended December 31, 2022 included special items which impacted the U.S. GAAP measures as follows: Gross Margin Selling, General and Administrative Expenses Research and Development Expenses Goodwill Impairment Other Operating Expense, Net Operating Income (Loss) Other (Income) Expense, Net Income (Loss) From Continuing Operations Before Income Taxes Income Tax Expense (Benefit) Income (Loss) From Continuing Operations Income From Discontinued Operations, Net of Tax Net Income (Loss) Net Income (Loss) Attributable to Baxter Stockholders Diluted Earnings Per Share From Continuing Operations Diluted Earnings Per Share From Discontinued Operations Diluted Earnings Per Share Reported $ 5,066 $ 3,859 $ 602 $ 2,812 $ 36 $ (2,243 ) $ 12 $ (2,650 ) $ 4 $ (2,654 ) $ 233 $ (2,421 ) $ (2,433 ) $ (5.29 ) $ 0.46 $ (4.83 ) Reported percent of net sales (or effective tax rate for income tax expense (benefit)) 34.9 % 26.6 % 4.2 % 19.4 % 0.2 % (15.5 )% 0.1 % (18.3 )% (0.2 )% (18.3 )% 1.6 % (16.7 )% (16.8 )% Intangible asset amortization 466 (287 ) — — — 753 — 753 168 585 — 585 585 1.15 0.00 1.15 Business optimization items1 28 (194 ) (3 ) — — 225 — 225 60 165 — 165 165 0.33 0.00 0.33 Acquisition and integration items2 170 (82 ) — — 39 213 — 213 53 160 — 160 160 0.32 0.00 0.32 Separation-related costs3 — (7 ) — — — 7 — 7 3 4 5 9 9 0.01 0.01 0.02 European medical devices regulation4 48 — — — — 48 — 48 12 36 — 36 36 0.07 0.00 0.07 Long-lived asset impairments5 344 — — — — 344 — 344 83 261 — 261 261 0.51 0.00 0.51 Pension curtailment9 — — — — — — 11 (11 ) (2 ) (9 ) — (9 ) (9 ) (0.02 ) 0.00 (0.02 ) Product-related items10 44 — — — — 44 — 44 5 39 — 39 39 0.08 0.00 0.08 Loss on product divestiture arrangement11 — — — — (54 ) 54 — 54 14 40 — 40 40 0.08 0.00 0.08 Goodwill impairments12 — — — (2,812 ) — 2,812 — 2,812 — 2,812 — 2,812 2,812 5.55 0.00 5.55 Loss on subsidiary liquidation13 — — — — (21 ) 21 — 21 4 17 — 17 17 0.03 0.00 0.03 Reclassification of cumulative translation loss to earnings14 — — — — — — (65 ) 65 — 65 — 65 65 0.13 0.00 0.13 Tax matters15 — — — — — — — — (27 ) 27 (2 ) 25 25 0.05 0.00 0.05 Adjusted $ 6,166 $ 3,289 $ 599 $ — $ — $ 2,278 $ (42 ) $ 1,925 $ 377 $ 1,548 $ 236 $ 1,784 $ 1,772 $ 3.03 $ 0.47 $ 3.50 Adjusted percent of net sales (or effective tax rate for income tax expense) 42.5 % 22.7 % 4.1 % 0.0 % 0.0 % 15.7 % (0.3 )% 13.3 % 19.6 % 10.7 % 1.6 % 12.3 % 12.2 % Reported Adjusted Income (loss) from continuing operations $ (2,654 ) $ 1,548 Less: Net income attributable to noncontrolling interests 12 12 Income (loss) from continuing operations attributable to Baxter stockholders $ (2,666 ) $ 1,536 Weighted-average diluted shares as reported 504 Effect of dilutive securities that were anti-dilutive to dilutive EPS as reported 3 Weighted-average diluted shares as adjusted 507 1 The company’s results of continuing operations in 2023 and 2022 included charges associated with its execution of programs to optimize its organization and cost structure. In 2023, these restructuring and other business optimization costs included actions related to its implementation of a new operating model intended to simplify and streamline its operations and better align its manufacturing and supply chain to its commercial activities, and its decision to close one its U.S.-based manufacturing facilities this year, which resulted in a $243 million noncash impairment of property, plant and equipment in the first half of 2023. In 2022, restructuring and business optimization costs included actions related to its integration of Hillrom. 2 The company’s results in 2023 and 2022 included acquisition and integration-related items comprised of Hillrom acquisition and integration expenses, including $159 million of incremental cost of sales in 2022 from fair value step-ups on acquired Hillrom inventory, and gains from changes in the fair value of contingent consideration liabilities. 3 The company's results in 2023 and 2022 included separation-related costs primarily related to external advisors supporting its activities to prepare for the proposed separation of its Kidney Care segment, which are reported in continuing operations. The company's results in 2023 and 2022 also included separation-related costs related to the sale of its BioPharma Solutions (BPS) business, which are reported as in discontinued operations. 4 The company’s results in 2023 and 2022 included incremental costs to comply with the European Union’s medical device regulations for previously registered products, which primarily consist of contractor costs and other direct third-party costs. The company considers the adoption of these regulations to be a significant one-time regulatory change and believes that the costs of initial compliance for previously registered products over the implementation period are not indicative of its core operating results 5 The company's results in 2023 included long-lived asset impairment charges of $267 million related to the Hemodialysis business within its Kidney Care segment. The company's results in 2022 included $344 million of long-lived asset impairments, including $332 million of impairments related to indefinite-lived intangible assets acquired in our December 2021 acquisition of Hillrom. Long-lived asset impairments presented within this special item do not include impairments of long-lived assets related to restructuring actions, which are presented within the business optimization special item described in footnote 1 above. 6 The company's results in 2023 included costs, including associated legal fees, related to matters involving alleged violations of the False Claims Act related to a now-discontinued legacy Hillrom sales line and alleged injury from environmental exposure, partially offset by proceeds received, net of legal fees, from a settlement related to an intellectual property dispute. 7 The company's results in 2023 included impairments of non-marketable investments in several early stage companies, partially offset by a gain from the sale of an investment. 8 The company's results in 2023 included a $2.59 billion gain, net of tax, from the sale of its BPS business. 9 The company's results in 2022 included a curtailment gain on an announced change for active non-bargaining participants in its U.S. Hillrom pension plan. 10 The company's results in 2022 included charges related to warranty and remediation activities from two field corrective actions on certain of its infusion pumps. 11 The company's results in 2022 included a loss related to an arrangement to divest certain product rights for an amount that is less than the cost of those product rights, which was triggered by U.S. and European Union regulatory approvals of the related products. 12 The company's results in 2022 included goodwill impairment charges related to reporting units acquired in its December 2021 acquisition of Hillrom. 13 The company's results in 2022 included costs related to its deconsolidation of a foreign subsidiary, including the derecognition of the related noncontrolling interest, upon its liquidation in December 2022 that was completed in connection with the company's legal entity rationalization activities. 14 The company's results in 2022 included a charge related to cumulative translation adjustments reclassified from accumulated other comprehensive income (loss) as a result of the substantial liquidation of its operations in Argentina. 15 The company's results in 2023 included a $5 million net income tax benefit from internal reorganization transactions, primarily related to the proposed separation of its Kidney Care segment. The company’s results in 2023 and 2022 included valuation allowance increases of $9 million and $25 million, respectively, related to its estimated recoverability of a deferred tax asset for a net asset step-up related to Swiss tax reform legislation enacted during 2019 that is amortizable as a tax deduction ratably over tax years 2025 through 2029. For more information on the company's use of non-GAAP financial measures, please see the Non-GAAP Financial Measures section of this press release. BAXTER INTERNATIONAL INC. Sales by Operating Segment (unaudited) ($ in millions) The Medical Products and Therapies segment includes sales of our sterile IV solutions, infusion systems, administration sets, parenteral nutrition therapies and surgical hemostat, sealant and adhesion prevention products. The Healthcare Systems and Technologies segment includes sales of our connected care solutions and collaboration tools, including smart bed systems, patient monitoring systems and diagnostic technologies, respiratory health devices and advanced equipment for the surgical space, including surgical video technologies, precision positioning devices and other accessories. The Pharmaceuticals segment includes sales of specialty injectable pharmaceuticals, inhaled anesthesia and drug compounding. The Kidney Care segment includes sales of chronic and acute dialysis therapies and services, including peritoneal dialysis, hemodialysis, continuous renal replacement therapies (CRRT) and other organ support therapies. Other sales not allocated to a segment primarily include sales of products and services provided directly through certain of our manufacturing facilities. Three Months Ended December 31, Twelve Months Ended December 31, 2023 2022 % Growth @ Actual Rates % Growth @ Constant Rates 2023 2022 % Growth @ Actual Rates % Growth @ Constant Rates Infusion Therapies and Technologies $ 1,042 $ 988 5% 4% $ 3,960 $ 3,817 4% 4% Advanced Surgery 278 260 7% 6% 1,051 998 5% 6% Medical Products and Therapies 1,320 1,248 6% 4% 5,011 4,815 4% 4% Care and Connectivity Solutions 492 441 12% 11% 1,800 1,791 1% 1% Front Line Care 303 293 3% 2% 1,213 1,148 6% 6% Healthcare Systems and Technologies 795 734 8% 7% 3,013 2,939 3% 3% Injectables and Anesthesia 359 344 4% 5% 1,347 1,305 3% 4% Drug Compounding 237 208 14% 11% 902 821 10% 12% Pharmaceuticals 596 552 8% 7% 2,249 2,126 6% 7% Chronic Therapies 950 970 (2) (3 3,683 3,714 (1) 0% Acute Therapies 206 193 7% 6% 770 735 5% 6% Kidney Care 1,156 1,163 (1) (1) 4,453 4,449 0% 1% Other 18 48 (63)% (58)% 87 177 (51)% (51)% Total - Continuing Operations $ 3,885 $ 3,745 4% 3% $ 14,813 $ 14,506 2% 3% In connection with our segment change in the third quarter of 2023, we reclassified $16 million of sales from the first half of 2023 and $34 million of sales for the year ended December 31, 2022, from Chronic Therapies to Acute Therapies to conform to the current period presentation. Additionally, in connection with the reclassification of our BPS business to discontinued operations during the second quarter of 2023, we reclassified $2 million of contract manufacturing revenues from the first quarter of 2023 and $37 million for the year ended December 31, 2022 from BPS to Other (within continuing operations), as the related manufacturing facility was not part of that divestiture transaction. Constant currency growth is a non-GAAP measure. For more information on the company’s use of non-GAAP financial measures, please see the Non-GAAP Financial Measures section of this press release. BAXTER INTERNATIONAL INC. Segment Operating Income (unaudited) ($ in millions) Three months ended December 31, Twelve months ended December 31, (in millions) 2023 2022 2023 2022 Medical Products and Therapies $ 266 $ 259 $ 972 $ 962 % of Segment Net Sales 20.2 % 20.8 % 19.4 % 20.0 % Healthcare Systems and Technologies 156 127 483 494 % of Segment Net Sales 19.6 % 17.3 % 16.0 % 16.8 % Pharmaceuticals 117 96 401 391 % of Segment Net Sales 19.6 % 17.4 % 17.8 % 18.4 % Kidney Care 92 101 300 408 % of Segment Net Sales 8.0 % 8.7 % 6.7 % 9.2 % Other (1 ) 25 18 77 Total 630 608 2,174 2,332 Unallocated corporate costs — (13 ) (51 ) (54 ) Intangible asset amortization expense (171 ) (175 ) (652 ) (753 ) Business optimization items (26 ) (29 ) (534 ) (225 ) Acquisition and integration items 2 (20 ) — (213 ) Separation-related costs (102 ) (7 ) (225 ) (7 ) European medical devices regulation (10 ) (13 ) (48 ) (48 ) Product-related items — (1 ) — (44 ) Legal matters 6 — (7 ) — Loss on product divestiture arrangement — — — (54 ) Long-lived asset impairments — (12 ) (267 ) (344 ) Goodwill impairments — (27 ) — (2,812 ) Loss on subsidiary liquidation — (21 ) — (21 ) Total operating income (loss) 329 290 390 (2,243 ) Interest expense, net 73 117 442 395 Other (income) expense, net 18 11 51 12 Loss from continuing operations before income taxes $ 238 $ 162 $ (103 ) $ (2,650 ) BAXTER INTERNATIONAL INC. Operating Segment Sales by U.S. and International (unaudited) ($ in millions) Three Months Ended December 31, 2023 2022 % Growth U.S. International Total U.S. International Total U.S. International Total Infusion Therapies and Technologies $ 573 $ 469 $ 1,042 $ 569 $ 419 $ 988 1% 12% 5% Advanced Surgery 149 129 278 146 114 260 2% 13% 7% Medical Products and Therapies 722 598 1,320 715 533 1,248 1% 12% 6% Care and Connectivity Solutions 337 155 492 304 137 441 11% 13% 12% Front Line Care 223 80 303 222 71 293 0% 13% 3% Healthcare Systems and Technologies 560 235 795 526 208 734 6% 13% 8% Injectables and Anesthesia 209 150 359 188 156 344 11% (4)% 4% Drug Compounding — 237 237 — 208 208 0% 14% 14% Pharmaceuticals 209 387 596 188 364 552 11% 6% 8% Chronic Therapies 235 715 950 248 722 970 (5)% (1)% (2)% Acute Therapies 77 129 206 69 124 193 12% 4% 7% Kidney Care 312 844 1,156 317 846 1,163 (2)% (0)% (1)% Other 14 4 18 39 9 48 (64)% (56)% (63)% Total - Continuing Operations $ 1,817 $ 2,068 $ 3,885 $ 1,785 $ 1,960 $ 3,745 2% 6% 4% BAXTER INTERNATIONAL INC. Operating Segment Sales by U.S. and International (unaudited) ($ in millions) Twelve Months Ended December 31, 2023 2022 % Growth U.S. International Total U.S. International Total U.S. International Total Infusion Therapies and Technologies $ 2,227 $ 1,733 $ 3,960 $ 2,241 $ 1,576 $ 3,817 (1)% 10% 4% Advanced Surgery 582 469 1,051 574 424 998 1% 11% 5% Medical Products and Therapies 2,809 2,202 5,011 2,815 2,000 4,815 (0)% 10% 4% Care and Connectivity Solutions 1,263 537 1,800 1,295 496 1,791 (2)% 8% 1% Front Line Care 905 308 1,213 840 308 1,148 8% 0% 6% Healthcare Systems and Technologies 2,168 845 3,013 2,135 804 2,939 2% 5% 3% Injectables and Anesthesia 759 588 1,347 682 623 1,305 11% (6) 3% Drug Compounding — 902 902 — 821 821 0% 10% 10% Pharmaceuticals 759 1,490 2,249 682 1,444 2,126 11% 3% 6% Chronic Therapies 927 2,756 3,683 923 2,791 3,714 0% (1)% (1) Acute Therapies 271 499 770 263 472 735 3% 6% 5% Kidney Care 1,198 3,255 4,453 1,186 3,263 4,449 1% (0)% 0% Other 66 21 87 137 40 177 (52)% (48)% (51)% Total - Continuing Operations $ 7,000 $ 7,813 $ 14,813 $ 6,955 $ 7,551 $ 14,506 1% 3% 2% BAXTER INTERNATIONAL INC. Reconciliation of Non-GAAP Financial Measure Operating Cash Flow to Free Cash Flow (unaudited) ($ in millions) Twelve Months Ended December 31, 2023 2022 Cash flows from operations – continuing operations $ 1,702 $ 1,031 Cash flows from investing activities - continuing operations (672 ) (872 ) Cash flows from financing activities - continuing operations (3,489 ) (1,438 ) Cash flows from operations - continuing operations $ 1,702 $ 1,031 Capital expenditures - continuing operations (692 ) (620 ) Free cash flow - continuing operations $ 1,010 $ 411 Twelve Months Ended December 31, 2023 2022 Cash flows from operations – discontinued operations $ 24 180 Cash flows from investing activities - discontinued operations 3,885 (59 ) Cash flows from operations - discontinued operations $ 24 $ 180 Capital expenditures - discontinued operations (27 ) (59 ) Free cash flow - discontinued operations $ (3 ) $ 121 Twelve Months Ended December 31, 2023 2022 Cash flows from operations – Total Baxter $ 1,726 $ 1,211 Cash flows from investing activities - Total Baxter 3,213 (931 ) Cash flows from financing activities - Total Baxter (3,489 ) (1,438 ) Cash flows from operations - Total Baxter $ 1,726 $ 1,211 Capital expenditures - Total Baxter (719 ) (679 ) Free cash flow - Total Baxter $ 1,007 $ 532 Free cash flow is a non-GAAP measure. For more information on the company’s use of non-GAAP financial measures, please see the Non-GAAP Financial Measures section of this press release. BAXTER INTERNATIONAL INC. Reconciliation of Non-GAAP Financial Measure Change in Net Sales Growth As Reported to Constant Currency Sales Growth From The Three Months Ended December 31, 2022 to The Three Months Ended December 31, 2023 (unaudited) Net Sales Growth As Reported FX Constant Currency Sales Growth* Infusion Therapies and Technologies 5% (1)% 4% Advanced Surgery 7% (1)% 6% Medical Products and Therapies 6% (2)% 4% Care and Connectivity Solutions 12% (1)% 11% Front Line Care 3% (1)% 2% Healthcare Systems and Technologies 8% (1)% 7% Injectables and Anesthesia 4% 1% 5% Drug Compounding 14% (3)% 11% Pharmaceuticals 8% (1)% 7% Chronic Therapies (2)% (1)% (3)% Acute Therapies 7% (1)% 6% Kidney Care (1)% 0% (1)% Other (63)% 5% (58)% Total - Continuing Operations 4 % (1)% 3% *Totals may not add across due to rounding Constant currency sales growth is a non-GAAP measure. For more information on the company’s use of non-GAAP financial measures, please see the Non-GAAP Financial Measures section of this press release. BAXTER INTERNATIONAL INC. Reconciliation of Non-GAAP Financial Measure Change in Net Sales Growth As Reported to Constant Currency Sales Growth From The Twelve Months Ended December 31, 2022 to The Twelve Months Ended December 31, 2023 (unaudited) Net Sales Growth As Reported FX Constant Currency Sales Growth* Infusion Therapies and Technologies 4% 0% 4% Advanced Surgery 5% 1% 6% Medical Products and Therapies 4% 0% 4% Care and Connectivity Solutions 1% 0% 1% Front Line Care 6% 0% 6% Healthcare Systems and Technologies 3% 0% 3% Injectables and Anesthesia 3% 1% 4% Drug Compounding 10% 2% 12% Pharmaceuticals 6% 1% 7% Chronic Therapies (1)% 1% 0% Acute Therapies 5% 1% 6% Kidney Care 0% 1% 1% Other (51)% 0% (51)% Total - Continuing Operations 2% 1% 3% *Totals may not add across due to rounding Constant currency sales growth is a non-GAAP measure. For more information on the company’s use of non-GAAP financial measures, please see the Non-GAAP Financial Measures section of this press release. BAXTER INTERNATIONAL INC. Projected First Quarter and Full Year 2024 U.S. GAAP Sales Growth to Projected Constant Currency Sales Growth and Projected First Quarter and Full Year 2024 Adjusted Earnings Per Share (unaudited) Sales Growth Guidance Q1 2024* FY 2024* Sales growth - U.S. GAAP ~ 1% ~ 2% Foreign Exchange < 50 bps ~ 0% Sales growth - Constant currency 1% - 2% ~ 2% Adjusted Earnings Per Share Guidance Q1 2024 FY 2024 Adjusted diluted EPS $0.59 - $0.62 $2.85 - $2.95 *Totals may not foot due to rounding Baxter calculates forward-looking non-GAAP financial measures based on forecasts that omit certain amounts that would be included in GAAP financial measures. For instance, forward-looking adjusted diluted EPS guidance excludes potential charges or gains that would be reflected as non-GAAP adjustments to earnings. Baxter provides forward-looking adjusted diluted EPS guidance because it believes that this measure provides useful information for the reasons noted in the accompanying release. Baxter has not provided reconciliations of forward-looking adjusted EPS guidance to forward-looking GAAP EPS guidance because the company is unable to predict with reasonable certainty the impact of legal proceedings, future business optimization actions, separation-related costs, integration-related costs, asset impairments and unusual gains and losses, and the related amounts are unavailable without unreasonable efforts (as specified in the exception provided by Item 10(e)(1)(i)(B) of Regulation S-K). In addition, Baxter believes that such reconciliations would imply a degree of precision and certainty that could be confusing to investors. Such items could have a substantial impact on GAAP measures of financial performance.

Scientists have developed stable orally available cyclic peptides with a much higher bioavailability than current ones, virtually creating a generation of drugs that can target previously untreatable diseases like certain types of cancer. For decades, a substantial number of proteins, vital for treating various diseases, have remained elusive to oral drug therapy. Traditional small molecules often struggle to bind to proteins with flat surfaces or require specificity for particular protein homologs. Typically, larger biologics that can target these proteins demand injection, limiting patient convenience and accessibility. In a new study published in Nature Chemical Biology, scientists from the laboratory of Professor Christian Heinis at EPFL have achieved a significant milestone in drug development. Their research opens the door to a new class of orally available drugs, addressing a long-standing challenge in the pharmaceutical industry. "There are many diseases for which the targets were identified but drugs binding and reaching them could not be developed," says Heinis. "Most of them are types of cancer, and many targets in these cancers are protein-protein interactions that are important for the tumor growth but cannot be inhibited." The study focused on cyclic peptides, which are versatile molecules known for their high affinity and specificity in binding challenging disease targets. At the same time, developing cyclic peptides as oral drugs has proven difficult because they are rapidly digested or poorly absorbed by the gastrointestinal tract. "Cyclic peptides are of great interest for drug development as these molecules can bind to difficult targets for which it has been challenging to generate drugs using established methods," says Heinis. "But the cyclic peptides cannot usually be administered orally -- as a pill -- which limits their application enormously." Cyclizing Breakthrough The research team targeted the enzyme thrombin, which is a critical disease target because of its central role in blood coagulation; regulating thrombin is key to preventing and treating thrombotic disorders like strokes and heart attacks. To generate cyclic peptides that can target thrombin and are sufficiently stable, the scientists developed a two-step combinatorial synthesis strategy to synthesize a vast library of cyclical peptides with thioether bonds, which enhance their metabolic stability when taken orally. "We have now succeeded in generating cyclic peptides that bind to a disease target of our choice and can also be administered orally," says Heinis. "To this end, we have developed a new method in which thousands of small cyclic peptides with random sequences are chemically synthesized on a nanoscale and examined in a high-throughput process." Two steps, one pot The new method process involves two steps, and takes place in the same reactive container, a feature that chemists refer to as "one pot." The first step is to synthesize linear peptides, which then undergo a chemical process of forming a ring-like structure -- in technical terms, being "cyclized." This is done with using "bis-electrophilic linkers" -- chemical compounds used to connect two molecular groups together -- to form stable thioether bonds. In the second phase, the cyclized peptides undergo acylation, a process that attaches carboxylic acids to them, further diversifying their molecular structure. The technique eliminates the need for intermediate purification steps, allowing for high-throughput screening directly in the synthesis plates, combining the synthesis and screening of thousands of peptides to identify candidates with high affinity for specific disease targets -- in this case, thrombin. Using the method, the PhD student leading the project, Manuel Merz, was able to generate a comprehensive library of 8,448 cyclic peptides with an average molecular mass of about 650 Daltons (Da), only slightly above the maximum limit of 500 Da recommended for orally available small molecules. The cyclic peptides also showed a high affinity for thrombin. When tested on rats, the peptides showed oral bioavailability up to 18%, which means that when the cyclic peptide drug is taken orally, 18% of it successfully enters the bloodstream and to have a therapeutic effect. Considering that orally administered cyclic peptides generally show a bioavailability below 2%, increasing that number to 18% is a substantial advance for drugs in the biologics category -- which includes peptides. Setting targets By enabling the oral availability of cyclic peptides, the team has opened up possibilities for treating a range of diseases that have been challenging to address with conventional oral drugs. The method's versatility means it can be adapted to target a wide array of proteins, potentially leading to breakthroughs in areas where medical needs are currently unmet. "To apply the method to more challenging disease targets, such as protein-protein interactions, larger libraries will likely need to be synthesized and studied," says Manuel Merz. "By automating further steps of the methods, libraries with more than one million molecules seem to be within reach." In the next step of this project, the researchers will target several intracellular protein-protein interaction targets for which it has been difficult to develop inhibitors based on classical small molecules. They are confident that orally applicable cyclic peptides can be developed for at least some of them.