Question-and-Answer Session
Operator
(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 website for 30 days at www.baxter.com. Our first question comes from Michael Weinstein from J.P. Morgan.
Michael Weinstein - J.P. Morgan
Thank you. Good morning.
Rob Davis
Good morning.
Michael Weinstein - J.P. Morgan
A nice job this quarter, once again.
Bob Parkinson
Thanks Mike.
Michael Weinstein - J.P. Morgan
Let me start with a couple of different items. First, when you come out with your 10-Q every quarter, we get a better picture of the margin improvement within the three businesses. With the step up we are seeing here in growth of the Medication Delivery now, once we see the 10-Q, how is that going work? I mean, the question I am getting to is we continue to see this great improvement in margins for the last several quarters within BioSciences, that's been obviously the big margin driver. We'll continue to see obviously the total corporate picture here, this great step up in gross margins again this quarter. How much of that is coming from BioSciences? How much is coming from renal division?
Bob Parkinson
Well, Mike let me comment and than Rob if, you want to maybe pitch in when I am done. Stating the obvious BioScience is driving that, the strength in the plasma business, the associated pricing has been, continues to be and we believe we'll be going forward a significant contributor to continued margin improvement. But, as we point out Mike, continuously I even referenced beginning of my prepared comments this morning.
We think, there are continuously to upside going forward in margin improvement really driven by a number of things beyond the BioScience story. What you'll see in Q3 margin for Medication Delivery is a very nice improvement in overall margins in Medication Delivery, actually, in all the key market segments. And again, this is a combination a factors. First of all, we are starting to get price in the core IV business, which is quite encouraging, that manifest itself across all of the businesses. Some of our higher margin businesses, whether it's our B2B business, our anesthesia business, the nutritional business and so on tend to grow faster than the overall business. And again, those are higher margin product segments, so what you get within Medication Delivery is a positive product or business unit mix effect that we believe will continue to contribute to improving margins in Medication Delivery.
- To read the full transcript on Seeking Alpha, click here »
