Baxter International Inc. Q3 2009 Earnings Call Transcript

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2009-10-15 08:57:07.0

Tags: J.P. Morgan Chase & Co., Call Transcript, Earnings, Baxter International Inc., Sales Strategy, Sales Force Management, Sales, Seeking Alpha

Question-and-Answer Session

Operator

(Operator Instructions) Your first question comes from the line of Mike Weinstein - JPMorgan

Mike Weinstein - JPMorgan

Let me start with the plasma protein piece, it would probably be helpful if you could quantify the impact of those tenders in Eastern Europe and Latin America falling into the fourth quarter rather then the third quarter, which you were anticipating.

Rob Davis

Its about $35 million that we expect to shift from the third quarter to the fourth quarter.

Mike Weinstein - JPMorgan

And so that $35 million that would have been on the plasma and protein line this quarter that should fall into the fourth quarter.

Mary Kay Ladone

About $10 of it is in IDIV, or antibody therapy. So $25 will be plasma.

Mike Weinstein - JPMorgan

And so the guidance for the full year implies that the BioScience business and it sounds very consistent, that the BioScience business re accelerates back to 10% to 12% growth in the fourth quarter, am I reading that correctly.

Rob Davis

Yes you are and I would say that our guidance we’ve given previously for the full year for plasma protein, with high teens, hasn’t changed. So we’re still confident we’re going to see high teens for the full year on a constant currency basis.

Mike Weinstein - JPMorgan

So the last piece on the BioScience side I just want to check on is on the H1N1, and you really didn’t give us that much that was new here today to try and read the scaling at the manufacturing and yield as we go into 2010, can you give us anything incremental that can give us a feel for how much you’ll be able to ship in the first quarter which will obviously be your big quarter next year.

Bob Parkinson

We’ll address that in January as part of our guidance. Look the takeaways even from a month ago when we had the Investor Conference are obviously we got the approval, that’s a big milestone. Secondarily our yield improvements continue even at a better rate then even what we communicated to all of you at the Investor Conference in September so we’re encouraged by that.

The basis for not changing our guidance for sales in the fourth quarter frankly as Rob mentioned in his prepared comments we really can’t bill anything until we got approval so that’s why there were no sales in the third quarter and frankly there’s a 30 day lag between shipments and our ability to bill them.

 

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