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Agenda
Medication Delivery’s Portfolio Is Poised For Accelerated Growth
Infusion Systems
Baxter Pharmaceuticals and Technologies
– Global Anesthesia– Enhanced Injectables
Innovation Through Technology
Camille FarhatGeneral Manager, Infusion Systems
Medication Delivery Overview– Overview– IV Therapy
Daniel TasséGeneral Manager, Baxter Pharmaceuticals and Technologies
Ken Burhop, Ph.D.Vice President, Global Scientific Lead
Peter ArduiniPresident, Medication Delivery
Key Takeaways
2007 – Accelerating Growth In Medication Delivery
High degree of confidence in achieving our “Base Case” of 6% - 8% top line growth
New products and business development provide opportunities for accelerated growth beyond the “Base Case”
Acute focus on continued margin expansion
The Medication Delivery Business
$1.3
$0.3
$1.5
$0.8
Infusion Systems
Global Anesthesia
2006 Medication Delivery Sales ($ in Billions)
Established global reach with internationally recognized brand
Market leading product portfolio
World class manufacturing and R&D capabilities
Competitive Advantages
Medication Delivery 2006 Sales = $3.9 Billion
IV Therapy
Enhanced Injectables
Global Reach And Brand Recognition
75 Years of brand excellence
Operating globally for over 50 years
In 2006, nearly 47% of sales outside the US
Strong channels and customer relationships
Manufacturing on 6 continents
Competitive Advantages2006 Medication Delivery Salesby Region
Well Established Global Capabilities
Asia Pacific
Latin America
Europe23%
US53%
10%
Other 4%
10%
Market Leading Products For Acute Care
Global Anesthesia
#2
IV Solutionsand Nutrition
#1
Pumps and Specialty Systems
#2
Access Sets
#1
Enhanced Injectables
#1
Our Global Product Families Are #1 Or #2 In Key Markets
Key Product Families
#1 or #2 Market Position
$3+ Billion in Sales
Pharma Partnering
#1
~80% of Revenues from Market-Leading Products
World Class Capabilities
Parenteral expertise
Device system engineering
Plastics and material science
Lyophilization
Fluorochemistry
R&D CapabilitiesManufacturing Capabilities
Manufacturing And R&D Capabilities Are Key Differentiators
Aseptic production
Plastic and moldings expertise
High volume / Low cost assembly
Cytotoxic expertise
Nutrition and Solution
Inhaled Anesthetics
Challenging Growth Over The Last Three Years
$4.0 $3.9$4.0COLLEAGUE and other infusion pumps
Propofol generic competition
Rocephin generic competition
20052004 2006
Growth ChallengesMedication Delivery Sales ($ in Billions)
~$450 Million Impact Over The Last Two Years
Medication Delivery Growth Plays
Diverse Array Of Growth Opportunities
IV SolutionsIV SolutionsIncrease Profitability
New products – AVIVAPrice / Mix management
Global AnesthesiaGlobal AnesthesiaShare Growth
Global expansionTechnical innovation
Infusion SystemsInfusion SystemsNew Growth Paradigm
24 Month product cycleRedefining the value proposition
Nutrition Nutrition Growth / Market Development
Geographic expansionNew product innovations in premix
FocusThemes
Medication Delivery Growth Plays
“The Rebirth Of Medication Delivery”
Business DevelopmentBusiness DevelopmentTarget Rich Opportunities
Strategic tuck-insDisciplined approach
Promising TechnologiesPromising TechnologiesWildcards
Hylenex: $500+ million potentialPromaxx: $500+ million potential
Enhanced InjectablesEnhanced InjectablesProduct Differentiation
Enhanced molecules drive growthOngoing platform development
Pharma PartneringPharma PartneringGrowth and Returns
Service and solution orientationUnique technical capabilities
FocusThemes
2006 2011“ Base Case”
LRP
Driving Revenue Growth In Medication Delivery
6% - 8%CAGR
$3.9B
Solid “Base Case” Strategy DeliveringMid To High-Single Digit Sales Growth
Aspiration
Global Anesthesia
Infusion Systems
Enhanced Injectables
IV Therapy
The IV Therapy Business
Global reachWorld class capabilities
– Science and technology– Manufacturing (Shingo Prize
winner)Innovation
– Packaging technologies– Nutrients– Devices and software– Manufacturing quality
Competitive Advantages
#1 Leadership Position
2006 Medication Delivery Sales ($ in Billions)
$1.3
$0.3
$1.5
$0.8
Infusion Systems
Global Anesthesia
IV Therapy
Enhanced Injectables
IV Therapy Market Size And Growth
Innovation In An Area Of Historical Strength
2006 2011
Core StrategiesPrice optimization
Drive product extension of non-PVC bags
Geographic and clinical development
Innovate packaging, solutions and formulations
$5.3$4.6
Market Dynamicsand Core Strategies
Global IV Therapy Market ($ in Billions)
Market DynamicsIV market in the US operating at or near capacity
Increasing demand for ready-to-use products
Interest increasing in non-PVC packaging
2% - 4%CAGR
Source: IMS Hospital Supply Index, Company 10k and Baxter Estimates
Non PVC, DEHP free and latex free
Temperature tolerance
Designed for difficult to admix drugs
Proprietary ENLIGHTENEDHRBC bar code
Price premium
Expanding AVIVA Launch In The US
Baxter Has Key Competitive Advantages With AVIVA
Key Product Attributes
Manual Compounding
Potential for medication errorsPreparation timeNumber of steps
Simplicity / Convenience
Low
High
Innovation Path
Parenteral Nutrition…Broad Portfolio Offering
Automated Compounding
Multi-Chamber Bags
High
Nutrition Products Provide Simplicity And Convenience
15 Minutes10 Steps
46 Minutes22 Steps
60 Minutes30 Steps
Global Expansion With Multi-Chamber Bags
Expand Market ShareWestern Europe
Business DevelopmentChina
Growth MarketUS
Growth Through Geographic Expansion And Clinical Development
Nutrition Summary
Invest in clinical evidence to enable expansion and share growth
Expand globally into both large and high growth markets
Continued innovation of premix products, macro-nutrients and micro-nutrients
Double-Digit Sales Growth Opportunity
How We Grow
2006 2011
8% - 10%CAGR
$0.5
$0.8
Baxter Nutrition Revenue($ in Billions)
“Base Case” LRP
IV Therapy Summary
Geographic expansion (e.g., China)
Optimize price in view of the IV industry operating at or near capacity in the US market
Geographic expansion and clinical development to grow Nutrition markets
Leverage plastics and materials science capabilities in fluid and nutritional packaging
Re-Energizing Our Core Business With Geographic Expansion And New Products
Infusion Systems:New Growth Paradigm
Camille FarhatGeneral Manager, Infusion Systems
Medication Delivery
The Infusion Systems Business
Installed base of over 500k large-volume pump channels
Productivity leader with standard sets
Manufacturing expertise
Integrated, multi-functional, and disciplined innovation-focused R&D
Competitive Advantages
The Pieces Are In Place For Accelerated Growth
2006 Medication Delivery Sales ($ in Billions)
$1.3
$0.3
$1.5
$0.8
Infusion Systems
Global Anesthesia
IV Therapy
Enhanced Injectables
Infusion Systems Market Size And Growth
Well Positioned To Take Advantage Of Market Trends
Core StrategiesBack in the market with device hardware
Grow leadership in access sets
Develop new applications
Expand geographically
Market Dynamicsand Core Strategies
Global Infusion Systems Market ($ in Billions)
Market DynamicsGrowth in ICU beds
Growth in surgeries
Focus on safety: infection reduction, medication error prevention, & workflow
2006 2011
$2.7
$2.1
4% - 6%CAGR
Source: MarketStrat Infusion Pumps Worldwide, July 2006
Access sets anti-microbial nanotechnology
COLLEAGUE with CXE (smart software) and CE Mark (multi-lingual)
Connectivity
Re-entry to acute care pain market with I-Pump
Local wound site pain offering
Broad portfolio of products
#1 or #2 Market position globally
History of game-changing innovations
Infusion Systems Is More Than COLLEAGUE
Resume Growth With 2007 Launches
Our Strong Base Upcoming Launches
Pain, oncology, and anti-infectives
Hospitals, infusion clinics and homecare agencies
Preferred for simplicity and portability
Market to grow 3x (2006 - 2011)1
Grow pain segment
– Europe: Physician training and clinical evidence
– US: Marketing and reimbursement focus
Expand oncology in US
– Leverage channel strength and key opinion leaders relationships
OpportunitiesApplication of Elastomerics
Optimizing Our Best-In-Class Infusors
Leveraging Our Current CapabilitiesFor Growth In Ambulatory Pump Market
Note 1: MarketStrat Infusion Pumps Worldwide, July 2006
Evolving Customer Requirements
Reduced Medication
Error
Reduced Infection
Greater Integration of Systems
Zero Medication Errors
Zero Blood Stream Infections
Interoperability
Patient and Care Unit Centric
– Workflow
– Clinical Information
+5% Accuracy
Ease of Use
Standardization
Needle-free Set
Req
uire
men
ts
Enhanced Safety Through Smart Products
Pharmacist
Risk Managers
CIO+
Tomorrow
Clinicians
Biomed
Cus
tom
ers
Today
New Business Paradigm
Sell pumps
Set usage
Repair / Service at minimal profit
Today
Sell pumps + network connectivity
Smart sets
Services: uptime, remote diagnostics, asset management, training ….
Continuous easy software upgrades and reporting
Tomorrow
Pump
SmartSets w/Feedback
Networked Services
Upgrades& Decision Support
Embedded 2-way connectivity
Continuous clinical monitoring
Disease specific decision support with smart alerts and alarms
Remote diagnostics and tracking
Push/pull downloads on demand
Smart System Pillars
Answering Customer Needs Through Smart Systems
Integrating Devices + Access Sets + ITEnables “Autopilot”
“Autopilot”
Our Approach To Smart Systems
Therapy Specificand Set
Interdependence
Scaleable Hardware with Software Upgradeability
Nurses’, Biomed’s, and Patient’s Best
Friend
In Pumps
Error Forgiving Diagnostic SetsBlood Stream
Infection Elimination
In Access Sets
In Technology
Two Way Data Exchange
Clinical and BiomedApplications
“True” Closed Loop Therapy
Clear And Integrated Approach …Enhance Safety And Productivity
Capabilities- Systems engineering- Subsystem expertise- Fluid mechanics- Patient safety- Software
Processes
Device Center of Excellence
Evolving all sub-systems over the Next 24 Months
2 – 3 New Device Introductions
New Products
Building Leadership In The Pump Business
Power management
User interface
Pump head technology
Connectivity
Clinical applications
Biomed applications
Technology Platforms
Platform Approach Drives Speed, Quality And Innovation
Sets
Pumps
IT
Autopilot
In US, 41 States require, suggest or are considering legislation on infection reporting1
In the US, over 3.5 million hospital acquired infections (HAI) yearly2
+350k BSI annually2 with 23 days longer stay, ~$250k per infection, and 18% increase in mortality3
Impact on the Market
Transforming The Industry –Blood Stream Infections (BSI)
Hospitals Are Seeking Solutions To The Significant Additional Costs Of BSI
Sterilized
Clinician access point infection protection
Sets
IT
Autopilot
Pumps
Source: 1) www.consumersunion.org, 2) CDC Special Report, Emerging Infectious Disease, Vol 7, No 2, April 2001, 10% HAI assumption 3) Pennsylvania Health Cost Containment , Hospital Acquired Infections, www.PCH4.org
Total US opportunities for BSI are well over 3 billion
Intended Customer Benefits
Prevents 99.9% of the 6 most common hospital based pathogens
Not contributory to antimicrobial resistance
Decreased hospital stay and costs
Proprietary Nano-Coating Process
First Game-Changing Technology Since Baxter Introduced Needle-Free
Baxter Advantage
Ideally suited for mass production within our manufacturing capabilities
Exclusive rights for needle-free access
Leverageable across businesses
Sets
IT
Autopilot
Pumps
Bacterial Colonization Sepsis
Uncoated Coated
Information Technology Sets
IT
Autopilot
Pumps
Department
Clinical Information & Productivity
Hospital Information Systems
Interoperability
Biomed
Real Time Info & Asset Management
Baxter
Remote Services Capabilities
Phase 3
Rule-based infusionsClinical Decision Support Ubiquitous 2-way comm.True closed loop
Improved Outcome
Clinical Integration
IT Evolution
SafetyProductivity
Outcome
Phase 1
5-rightsRemote alarmsInfusion data
Therapy Delivery … Error Reduction
Phase 2
Data mergeBiomed applicationsClinical applicationsSmart alerts & alarmsFaster event to action
Productivity … integrated info
Data Integration
Sets
IT
Autopilot
Pumps
Enhancing Revenue Growth
Pump
SmartSets w/Feedback
Networked Services
Upgrades& Decision Support
Remote Diagnostics
Asset Management
Software Apps & Upgrades
Install & connect
Decision Support
Smart Sets
Service Repair
Standard Sets
PumpsTomorrowToday
Innovation Will Provide New Sources Of Revenues
Sets
Pumps
IT
Autopilot
2006 2011
Infusion Systems Summary
Deployment … Solidify customers’ trust
Innovation and new product introductions
Expand geographically and develop new applications
Aggressive development and integration of platforms to enable ”Autopilot”
The Future Starts Now
How We GrowBaxter Infusion Systems Revenue($ in Billions)
6% - 8%CAGR
$0.8
$1.1
“Base Case” LRP
Global AnesthesiaAnd
Enhanced Injectables
Daniel TasséGeneral Manager, Baxter
Pharmaceuticals and TechnologiesMedication Delivery
The Global Anesthesia Business
Of the three modern inhaled anesthetics (IA)
– 2 are available from a few competitors
– 1 is unique to Baxter
– Only Baxter offers all three
Channel and clinical sales strength
Unique technical capabilities– IA chemistry
– Manufacturing and engineering
– Product reliability
Competitive Advantages
Unique Position In The Global Anesthesia Market
2006 Medication Delivery Sales ($ in Billions)
$1.3
$0.3
$1.5
$0.8
Infusion Systems
Global Anesthesia
IV Therapy
Enhanced Injectables
2006 2011
Global Anesthesia Market Size And Growth
Market DynamicsUnit volume growth = 6% CAGR1
Increase in number of surgeries
No disruptive technologies on the horizon
Inhaled Anesthetics (IA) usage evolves
Core StrategiesIncrease our share of total market
Methodical geographic expansion
Drive clinical development of IA
$1.2
Market Dynamicsand Core Strategies
Global Inhaled Anesthetic Market($ in Billions)
Share Growth Opportunity In Profitable Market
2% - 4% CAGR
$1.4
Source and Note 1: IMS Data, Company 10k, and Baxter Estimates
Baxter Portfolio Advantage
Baxter Gases
Suprane (Desflurane)
Sevoflurane
Forane (Isoflurane)Ignoring price, only 10% of usage would change1
74% of clinicians use all three gases1
Forane (Isoflurane)
Sevoflurane
Suprane (Desflurane)24%
41%
35%
Share of Procedures1
Unbiased clinical partnership to help achieve the best patient outcome
Why Baxter
Offering All Three Gases Is A Significant Clinical And Economic Value Proposition
Note 1: US Inhalation Market Quantitative Tracking Research study by Inform Research for Baxter
Sustainable Anesthesia Leadership
SupraneSevoflurane
IsofluraneClinical Development and Selling
Manufacturing Expertise
IA System Validation
Ongoing Innovation
Skilled Scientists
Global Inhaled Anesthetic Market LeadershipRequires Broad Competencies
Global Anesthesia Summary
Drive share growth through– Full line position
– Geographic expansion
Technical competencies to deliver inhaled gases globally
Clinical expertise and customer intimacy
On Track To Market Leadership
How We GrowBaxter Global Anesthesia Revenue ($ in Billions)
2006 2011
11% - 13%CAGR
$0.3
Aspiration
“Base Case” LRP
The Enhanced Injectables Business
Proprietary technologies
– Enhanced packaging
– Formulation technologies
– Enhanced delivery
World class manufacturing
– Parenterals
– Facilities design
– Complex molecules
Scientific and technical expertise
Services and solutions orientation
Competitive Advantages
Providing Hospitals And Pharma Partners With World Class Capabilities
2006 Medication Delivery Sales ($ in Billions)
$1.3
$0.3
$1.5
$0.8
Infusion Systems
Global Anesthesia
IV Therapy
Enhanced Injectables
Serving Two Core Customers
Baxter Injectables ~ $1.2 BMolecules to Hospital Customers
Enhanced Injectables2006 Sales = $1.5 Billion
Providing Hospitals And Pharma Partners With World Class Capabilities
Pharma Partnering~ $300 Million
Other~ $200 Million
Enhanced Packaging~ $600 Million
Amps and Vials~ $400 Million
Pharma Partnering ~ $0.3 BProprietary Molecules
Emphasis of DifferentiationEmphasis of Differentiation
The Value Of Enhanced Drug Delivery
Number of CompetitorsMany Few
Customer Continuumof Clinical BenefitsLess More
Ampoules and Vials
Focus On Higher ValueAnd Clinically Differentiated Platforms
Enhanced Packaging
Formulation Technologies
Enhanced Delivery
Enhanced Drug Delivery Platforms
Enhanced Packaging
Formulation Technologies
Enhanced Delivery
Promaxx Sustained release injectable and inhaled drug formulations
Hylenex Removes barriers to absorption and dispersion, allowing hydration and administration of drugs Sub-Q
Solomix Pre-attached vial to bag for non-stable drugs; improved shelf life
Platform by which an insoluble drug can be made solubleNanoedge
Liquid Premix Ready-to-use liquid drugs; medication error
Frozen Premix Ready-to-use frozen for non-stable drugs; medication error
Clearshot Clear, break-resistant syringe, well suited for sensitive biologics
Platforms Description and Benefits
Broadest Portfolio Of Delivery PlatformsWith Demonstrated Clinical Benefits
Value Of Differentiation –Ceftriaxone Example
~$11.00 / gram
Price stability
Zero competitors
~$4.00 / gram
Rapid price erosion
8 – 10 competitors
Marketplace Rewards Enhanced Drug Delivery
Reduced risk of medication error
Reduced risk of contamination
Reduced steps and labor required
Frozen PremixVials
–– ++
Enhanced Injectables – Our Approach
Opportunities Exist For Both Partner And Baxter Molecules
Baxter’s Approach
Baxter Injectables (Off-Patent)Selective enhancement of molecules
Build on channel strength
Leverage enhanced delivery platforms
Core Strategy
Pharma Partnering (Proprietary)Solve customer problems
Provide dependable supply
Leverage enhanced delivery platforms
PharmaPartnering
BaxterInjectables
Enhanced Packaging
Enhanced DrugDelivery Platforms
Formulation Technologies
Enhanced Delivery
Enhanced Injectables – Market Implications
Growing Market That Plays To Baxter’s Enhanced Injectables Capabilities
Molecules Coming Off Patent66 Molecules over the next ten years, 23 are biologics4
Life Cycle Management~50% of New Drug Application approvals are reformulations3
Biologics Growth13% CAGR increase by 2010, an increase of $26 billion2
Pharma OutsourcingExpected to increase from 32% today to 37% in 20111
Baxter Injectables
Pharma Partnering
Note 1: 2005 PharmaSource Report; Note 2: June 2006 DataMonitor Report “Biologics Driving Growth to 2010”Note 3: January 2004 DataMonitor Report “Injectable Drug Delivery”; Note 4: Orange Book and Newport Horizon
Pharma PartneringWorld Class Capabilities
We Solve Our Customers’ Problems
Fill / Finish Capabilities Enhanced Drug Delivery
Bloomington, Indiana andHalle, Germany
Fully dedicated to contract services includes clinical, commercial and cytotoxic manufacturing capabilities
Supply assurance – product available when needed at the highest quality
Manufacturing expertise to solve our client’s problems
Facility of the YearAwarded by the Internal Society of Pharmaceutical Engineers (ISPE)
Enhanced packaging
Formulation technologies
Enhanced delivery
Industry leading scientific team
Pharma Partnering Summary
Service and solutions orientation
Unique enhanced drug delivery platforms
Strong technical capabilities
Deep relationships with top pharma partners
Strong Double-Digit Sales Growth
How We GrowBaxter Pharma Partnering Sales($ in Billions)
2006 2011
14% - 16%CAGR
$0.3
Aspiration
“Base Case”LRP
Enhanced Injectables Summary
Demonstrated expertise in enhanced drug delivery platforms and manufacturing capabilities
Pharma partners require our expertise to differentiate and increase the value of proprietary molecules
Expertise applied to Baxter molecules delivers clinical value to hospitals driving market and margin growth
Leveraging Platforms To Create Value
Innovation Through TechnologyHYLENEX And PROMAXX
Ken Burhop, Ph.D.Vice President, Global Scientific Lead
Medication Delivery
Emphasis of DifferentiationEmphasis of Differentiation
The Value Of Enhanced Drug Delivery
Number of CompetitorsMany Few
Customer Continuumof Clinical BenefitsLess More
Ampoules and Vials
Focus On Higher ValueAnd Clinically Differentiated Platforms
Enhanced Packaging
Formulation Technologies
Enhanced Delivery
PROMAXX
HYLENEX
Why HYLENEX?
Only FDA-approved recombinant hyaluronidase human injectionIndicated for:
– Increase absorption and dispersion of other injected drugs– Subcutaneous (Sub-Q) hydration
Provides Clinicians A Better Solution To Serve Patients With Difficult Venous Access
HYLENEX – Mechanism of Action
Enables Enzymatically Augmented Subcutaneous Infusion For Delivery Of Drugs And Fluids
Hyaluronic acid is a gel-like substance found in tissues throughout the body (e.g., skin, eyes) that inhibits the spread of subcutaneously-infused fluids
HYLENEX digests the hyaluronic acid to temporarily degrade the gel and enable fluids and other drugs to be delivered more effectively
The hyaluronic acid is naturally regenerated within 24 hours
Problems with IV Administration Sub-Q Administration with HYLENEX
Difficult venous access Easy access via multiple sites
HYLENEX Solves Many Of The ProblemsAssociated With IV Administration
Brings IV Like Performance Without The Burden Of IV
Must change site every 3 days Sub-Q can remain up to 7 days
Requires skilled nursing / surveillance Nurse / nurse aide (or family) can do it
Phlebitis Bruising
Potential complications
HYLENEX Vial Butterfly Needle
Avoids many complications
Study Results –Hydration With Lactated Ringers (LR)
INFUSE-LR Study (n = 48)LR Flow Rates: HYLENEX vs. Placebo
400 cc
Without Without HYLENEXHYLENEX
400 cc
With With HYLENEXHYLENEX
HYLENEX Makes Sub-Q Hydration Possible
Sub-Q Administration with HYLENEX
HYLENEX accelerated flow rate: ~ 4x vs placebo
Significant swelling without HYLENEX
Reduced swelling with HYLENEX
Preferred by 92% of subjects & investigators
Subject 105
Study Results – Morphine Study
Provides a superior effect of morphine over time (Pk) when compared to Sub-Q morphine alone and closer to IV morphine
Time to maximum concentration reduced by 42%: 19.1 min with placebo to 11.2 min with HYLENEX
Sub-Q Administration with HYLENEX
Better Than Traditional Sub-Q And Closer To IV Administration Of Morphine
INFUSE-Morphine StudyPharmacokinetic (Pk) Profile
010203040506070
0 3 6 9 12 15 18 21 24 27 30
Minutes
80
130
180
230
280
Morphine IV
Morphine SQ + HYLENEXMorphine SQ + Saline
Plas
ma
Mor
phin
e C
once
ntra
tion
(ng/
mL)
What Thought Leaders Are Saying
Broad-Based Support From Key Opinion Leaders
“I love working on things that can change medicine and can make a difference for society. HYLENEX is just such a project that has the potential to change medicine.” Chris Ramsook, MD, Assistant Clinical Professor, University of Arizona College of Medicine,
Program Director, Pediatric Emergency Medicine Fellowship, Phoenix Children’s Hospital
“Please let me know what I can do to help. I really want this product to be used everywhere.” Ken Yen, 2005 AAP’s Young Scientist Award, DIVA score, Assistant Professor, Children’s
Hospital of Milwaukee
“This will revolutionize pediatric medicine. Just think of a world without having to continually jab IV’s and never have to do IO’s [intraosseous infusions].”Coby Allen, MD, Texas Children’s Hospital, Assistant Professor of Pediatrics, Baylor College of Medicine
Uncontrolled Protein
Precipitation
What Is PROMAXX?
A sophisticated formulation technology platform for complex molecules
Addresses substantial unmet needs for:– New product development– Life cycle management
Proprietary Formulation Technology Platform
PROMAXX Microspheres
PROMAXX Platform Applications
Nucleic Acid Delivery
PROMAXXMicrospheres
Monoclonal Antibody Delivery
Sustained Release
0102030405060708090
100
0 5 10 15 20 25 30
Time (Hours)
Cum
ulat
ive
Perc
ent R
elea
sed
(%)
Target Cell
Targeted Delivery
The Power And Versatility Of ProMaxx As A Drug Delivery Platform
Pulmonary Delivery
Inhaled Insulin Phase I - Trial Study Results*
* Data presented at upcoming scientific meetings
Low bioavailability relative to injected – Exubera bioavailability is ~10%
Pulmonary Delivery Issues
Need for enhancing agents (additional excipients)
Local adverse events such as cough and shortness of breath
Tangible Benefits For Patients And Clinicians
Bioavailability more favorable than dry powder systems– Reduce inhaled drug dose– Lower costs
PROMAXX Advantage
Essentially pure insulin (no additional excipients)
No evidence of coughing or shortness of breath
Technology Innovation Summary
HYLENEXOpportunity to be a $500+ million business
Expanded relationship with Halozyme for HYLENEX kits and coformulations
Enables enzymatically augmented subcutaneous infusion
$1 Billion Opportunity With Platforms Of Significant Clinical Potential
PROMAXXOpportunity to be a $500+ million business
Trials and continued platform development are on track
PROMAXX is an ideal differentiator for proprietary and Baxter molecules
2006 2011“ Base Case”
LRP
Driving Revenue Growth In Medication Delivery
6% - 8%CAGR
$3.9B
Aspiration
IV SolutionsIV SolutionsIncrease Profitability
Global AnesthesiaGlobal AnesthesiaShare Growth
Infusion SystemsInfusion SystemsNew Growth Paradigm
Nutrition Nutrition Growth / Market Development
Business DevelopmentBusiness DevelopmentTarget Rich Opportunities
Promising TechnologiesPromising TechnologiesWildcards
Enhanced InjectablesEnhanced InjectablesProduct Differentiation
Pharma PartneringPharma PartneringGrowth and Returns
Solid “Base Case” Strategy
Inhaled Anesthetics
COLLEAGUE
Nutrition
Portfolio Optimization
Creating Value Through Margin Expansion
Cost and Yield Improvements
Concentrated & Redirected Promotional Focus
Mix Shifts / Product Upgrades / Price Improvement
AVIVA
IV Solutions Pricing
Enhanced Injectables
Several Near-Term Margin Expansion Opportunities In Medication Delivery
Pharma Partnering
Enhanced Injectables
Infusion Systems
IV Therapy Global Expansion
Summary
2007 – Accelerating Growth Of Medication Delivery
High degree of confidence in achieving our “Base Case” of 6% - 8% top line growth
New products and business development provide opportunities for accelerated growth beyond the “Base Case”
Acute focus on continued margin expansion