Baxter International Inc. (NYSE:BAX) Q2 2018 Earnings Conference Call - Preliminary Transcript

Jul 26, 2018 • 08:30 am ET


Baxter International Inc. (NYSE:BAX) Q2 2018 Earnings Conference Call - Preliminary Transcript


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Good morning, ladies and gentlemen and welcome to Baxter International's Second Quarter 2018 earnings conference call. Your lines will remain in a listen-only mode until the question-and-answer segment of today's call. As a reminder, this conference call is being recorded by Baxter and is copyrighted material. It cannot be recorded or rebroadcast without Baxter's permission. If you have any objections, please disconnect at this time.

I would now like to turn the call over to Ms. Clare Trachtman, Vice President, Investor Relations at Baxter International. Ms. Trachtman, you may begin.

Clare Trachtman

Thanks, Candace. Good morning, and welcome to our second quarter 2018 earnings conference call. Joining me today are Joe Almeida, Baxter's Chairman and Chief Executive Officer, and Jay Saccaro, Baxter's Chief Financial Officer. On the call this morning, we will be discussing Baxter's second quarter 2018 financial results along with our updated financial outlook for 2018. A supplemental presentation to complement this morning's discussion can be accessed on our website. This presentation along with related non-GAAP reconciliations can be accessed on Baxter's external website in the investor section under Events & news.

With that, let me start our prepared remarks by reminding everyone that this presentation, including comments regarding our financial outlook, new product developments, business developments and regulatory matters contain forward-looking statements that involve risks and uncertainties. And, of course, our actual results could differ materially from our current expectations. Please refer to today's press release and our SEC filings for more details concerning factors that could actual results to differ materially.

In addition, on today's call, non-GAAP financial measures will be used to help investors understand Baxter's ongoing business performance. A reconciliation of the non-GAAP financial measures being discussed today to the comparable GAAP financial measures is included in our earnings release issued this morning and available on our website.

Now I'd like to turn the call over to Joe. Joe?

Jose E. Almeida

Thank you, Clare, and good morning to everyone joining us. I'm going to share a few comments on our second quarter performance. Then Jay will walk through the financials and guidance in more detail. And we will close as always by taking your questions. I would like to start by saying how energizing it was meeting with so many of you face-to-face at our investor conference. Thanks also to those of you who attended online or watched the replay. Our team was excited to share the next chapter in Baxter's story, our progress to date and more importantly, our opportunities and outlook ahead.

We've set a clear path to deliver approximately 5% compounded annual growth through 2023. We will accomplish this objective by building on the strength of our base business and accelerating innovation. As we shared at the conference, we plan to introduce new therapies and products that I expect to contribute approximately $1.7 billion of sales by 2023. At the same time, we remain relentless focus on enhancing operational efficiency to deliver increased value to shareholders. And we will augment this performance with business development, expanding