Baxter International Inc (NYSE:BAX) Q2 2019 Earnings Conference Call - Final Transcript
Jul 25, 2019 • 08:30 am ET
Thank you. We will now begin the question-and-answer session. [Operator Instructions] I would like to remind participants that this call is being recorded and a digital replay will be available on the Baxter International's website for 60 days at www.Baxter.com. And our first question comes from David Lewis from Morgan Stanley. Your line is now open.
Good morning. Joe, I thought your comments on ESRD are pretty clear. So maybe I'll focus on a Medication Delivery and a quick one for Jay. So Joe, in Med Delivery, obviously, you beat our number, there was a pretty significant momentum improvement. You are maintaining guidance. Can you just talk about how you're feeling about market stability, new customer, new account penetration and, in fact at the pump business as we head into the second half of the year? And then a quick one for Jay.
Good morning, David. The business as we had predicted had a really tough comp in the first quarter, but we had confidence in our ability to secure current customers that have been with us for many years. So, we have re-signed all GPO agreements and for the most part, we signed a great deal of IDN agreements as well. The market is stable. We found opportunities to gain new customers, not only in the acute care market, but also in the OEM or contract manufacturing business that is important to us, help us in our facilities, but also improve the visibility of Baxter product line across all sets of care.
When it comes to pumps, we have a very healthy pipeline. There is always pluses and minuses, but I would say at the moment the pluses are winning free handily, the opportunities that we have. But I'd tell you the new management group that we have put in the US has done an extraordinary job in understanding the pipeline and the creation of value. Our Spectrum version 9 is a wonderful pump, it's a really good device with the number one best in-class drug library. And that has been very important to us in terms of having this product showcased for our customers.
So, the business as we predicted is healthy. We're going to continue to make progress and this continues to be our source of investment for ourselves. Our new pump platform is coming along extremely well and we're very comfortable with the launch time line for it.
Okay, very clear. And then Jay, just thinking about a couple of items in the guidance in the back half of the year, I mean FLOSEAL was a benefit to this particular quarter, I'm sort of curious, what your assumptions were for the back half of the year for FLOSEAL? And then with Myxredlin, maybe just talk little briefly about the size of the opportunity there for the company. I think we've talked about this product launch for a while. How big is that opportunity and what are the assumptions into the back half? Thanks so much.