20150416_BAXTER

“A leader in healthcare”

TIM503 spring 2015 Case study on Technology Identification Bahadır Doğan 209MIE8020

Presentation Outline

• Company Profile

• Corporate Overview

• Global Presence

• History

• Technology Identification

• Corporate Technology Sourcing Unit

• Baxter Ventures

• Questions & Closure

Corporate Overview

• Develops, manufactures and markets products for people with hemophilia, immune disorders, infectious diseases, kidney disease, trauma, and other chronic and acute medical conditions

• 2014 sales of $16.7 billion and has approximately 65,500 employees

• Baxter products are infused, injected or inhaled approx. 6 million times a day

Corporate Overview

60%

40%

2014 Sales by Business

Medical Products (hemophilia; immune deficiencies, other blood-related conditions)

BioScience (intravenous solutions, infusion pumps, inhalation anesthetics)

Corporate Overview

42%

31%

11%

16%

2014 Sales by Region

U.S.

Europe

Latin America / Canada

Asia Pacific

Corporate Overview

Regional Employee Breakdown

2012 2013 2014

United States 20,300 22,000 23,000

Europe 15,500 21,000 21,000

Latin America/Canada 6,875 8,500 9,100

Asia Pacific 8,100 9,700 12,000

Total 50,800 61,500 65,500

Corporate Overview

$-

$500

$1,000

$1,500

2010 2011

2012 2013

2014

$915 $946 $1,156 $1,246

$1,421

R&D Expenditures (in millions $)

• “ ... medical firsts; the first commercially manufactured (IV) solutions to the first portable kidney dialysis machine ... Baxter

continually pursues breakthrough technologies through research facilities around the world, and our investments reflect that

commitment. ”

clinical differentiation

inlicensing, milestone

reimbursement payments

made to partners for

R&D

Corporate Overview

• The company continues to focus on four key strategic growth vectors (objectives)

• advancing the core portfolio globally,

• driving innovation through the R&D pipeline,

• enhancing growth through acquisitions

• collaborations, and developing unique public-private partnerships.

Global Presence

• Global presence and infrastructure is one of Baxter's key strengths

• In 2014, nearly 60 percent of Baxter's sales and workforce were outside the United States

• North America Baxter has facilities in 12 states and Puerto Rico. HQ located in Deerfield, Illinois, approximately 30 miles north of Chicago.

Global Presence

• Has significant presence in Europe, Middle East and Africa, with manufacturing and research facilities in more than a dozen countries including Austria, Belgium, Czech Republic, France, Germany, Ireland, Italy, Malta, Poland, Spain, Sweden, Switzerland and the United Kingdom.

Global Presence

• Latin America/Canada region includes Baxter manufacturing and distribution facilities in Argentina, Brazil, Canada, Colombia, Costa Rica, Dominican Republic and Mexico.

• Has had a significant Asia Pacific presence for more than 40 years. Five sub-regions: Japan, China, North Asia, Australia/New Zealand and India/Southeast Asia.

History

• 1931 - first manufacturer of commercially prepared IV solution

• 1939 - named Baxter Laboratories, introduced the Transfuso-Vac container, the first sterile, vacuum-type blood collection and storage unit. Before, blood could be stored for only a few hours; new container allowed storage for up to 21 days

History

• 1941- introduced the Plasma-Vac container, separating plasma from whole blood, storing it for future use.

• 1956 - Dr. Kolff’s kidney dialysis machine (made up of orange juice cans and a washing machine) collaboratively developed by Mr. Graham & Baxter engineers. Finally, introduced first commercially built artificial kidney for end-stage renal disease.

History

• 1959 - acquired Fenwal Lab: Blood-pack flexible, plastic container system led to Baxter's development of the VIAFLEX plastic IV bag. The technology applied eventually led to the development of a flexible, plastic container system for dialysis solutions that made possible continuous ambulatory peritoneal dialysis (CAPD), another Baxter first.

History

• 1962 - Baxter introduced first disposable blood oxygenator, making open-heart surgery possible.

• 1968 - introduced first commercially produced factor VIII concentrate to treat hemophilia.

• 1978 - Baxter introduced CAPD as a home-based alternative to hemodialysis. Sales exceeded $1 billion.

History

• 1985 - acquired American Hospital Supply Corp., becoming a broad-based healthcare products distributor

• 1995 - gained approval in Europe for its ISOLEX CD34+ stem-cell separator.

• 1996 - spun off its medical products distribution business, focus on core renal, biotechnology. Clearence from U.S. (FDA) for infusion pump.

History

• 1998 - acquired Ohmeda´s Pharmaceutical Products Division producing inhalation agents and drugs used for general and local anesthesia.

• 2007 - first needle-less IV connector with an antimicrobial coating.

History

• 2009 - European Commission granted marketing authorization CELVAPAN H1N1 pandemic influenza vaccine.

• 2011 - Baxter Ventures launched as a means to invest up to $200 mi. in equity on products and therapies, and accelerate innovation and growth. Acquire Baxa, mfgr automated compounding systems for parenteral nutrition.

Technology Identification

• Corporate Technology Sourcing CTS unit operates in an innovative and creative atmosphere. @ 6 staff & $500K

• Mission is to monitor new (unusual) external technological developments

• CTS looks for the unexpected and passes info onto technical & mktg dept

• Responds to specific requests

• No need to be right always, but creative


• Transferred;

• Raspberry temperature measurement technique to use in continuous sterilization

• Japanese vending machine tehnology to use for automatic pharmacy machines

• 2% success

• → @5000 about 100 ideas are followed up; and 5-10% of projects are commercial success

• → resulting $30-40m annual revenues


• Plans (policy) & forecasts i.e.





BioSurgery 2017 Market Potential = ~$8B

Anesthesia 2017 Market Potential = $1.2B

Nutritional Therapies 2017 Market Potential = $3.5B

Baxter Ventures

• Identifies companies with promising technologies, products, and provides the capital and expertise needed to drive successful innovation. Ventures created in 2011 by Baxter International

• CTS found in 1980s

• Has CTS Directors in EU and USA

• Baxter Ventures found on 2011

Baxter Ventures

• Invests in companies with innovative technologies, products and therapies with the ability to improve patient care globally and maximize value for investors and entrepreneurs.

• Interested in complementary solutions to current product range; as well as, cutting-edge technologies outside range

Baxter Ventures

• Application for Funding

• Company name, info, #employees

• Date Founded

• Total $ Funding Raised

• Product/Technology

• Market Opportunity

• Technical/Clinical Development Pathway

• Management Team

• Investment/Strategic Resources Requested

Further Discussions

• Baxter announced plans to create two independent companies 03/14

• Biopharmaceuticals (the spin-off)-Baxalta

• Medical products (%60 revenues)-Baxter

• Transaction (for spin-off) expected to be completed by 06/15

• Initial dis-synergies estimated at ~2% decline at total Baxter revenues

Questions & Closure

Thank you..

Documents

20150416_BAXTER