Baxter International Inc. (NYSE:BAX) is a global healthcare company that, through its subsidiaries assists healthcare professionals and their patients with treatment of complex medical conditions including hemophilia, immune disorders, kidney disease, cancer, trauma and other conditions. With 2006 sales of $10.4 billion, and approximately 44,500 employees, Baxter applies its expertise in medical devices, pharmaceuticals and biotechnology to make a meaningful difference in patients' lives.
Baxter International Inc. assists healthcare professionals and their patients with the treatment of complex medical conditions, including hemophilia, immune disorders, infectious diseases, cancer, kidney disease, trauma and other conditions. The Company applies its expertise in medical devices, pharmaceuticals and biotechnology to make a meaningful difference in patients' lives. Baxter's products are used by hospitals, clinical and medical research laboratories, blood and plasma collection centers, kidney dialysis centers, rehabilitation centers, nursing homes, doctors' offices and by patients at home under physician supervision.
Baxter manufactures products in 28 countries and sells them in over 100 countries. The Company is the holding company for various subsidiaries and divisions, many of which have their own sales forces and direct their own sales efforts. Sales are made to and through independent distributors, drug wholesalers acting as sales agents and specialty pharmacy or homecare companies. In the United States, Cardinal Health, Inc. warehouses and ships a portion of the company's products through its distribution centers. These centers are generally stocked with adequate inventories to facilitate prompt customer service. Sales and distribution methods include frequent contact by sales representatives, automated communications via various electronic purchasing systems, circulation of catalogs and merchandising bulletins, direct-mail campaigns, trade publications and advertising.
International sales of the Company are made and products are distributed on a direct basis or through independent local distributors in more than 100 countries. International subsidiaries employ their own field sales forces in Argentina, Australia, Austria, Belgium, Brazil, Canada, Chile, China, Colombia, the Czech Republic, Denmark, Ecuador, Finland, France, Germany, Greece, Guatemala, India, Italy, Japan, Korea, Mexico, The Netherlands, New Zealand, Norway, Panama, Peru, the Philippines, Poland, Portugal, Russia, Singapore, Spain, Sweden, Switzerland, Taiwan, Thailand, Turkey, the United Kingdom and Venezuela.
The Company's products are sold through contracts with customers, both within and outside the United States. Many of the contracts have terms of more than one year and place limits on price increases. In the case of hospitals, clinical laboratories and other facilities, these contracts may specify minimum quantities of a particular product or categories of products to be purchased by the customer. Raw materials essential to the Company's business are purchased worldwide in the ordinary course of business from numerous suppliers. Although most of these materials are generally available, certain raw materials used in producing some of the company's products are available only from one or a limited number of suppliers, and the Company has at times experienced occasional shortages of supply. The Company is actively engaged in research and development programs to develop innovative products, systems and manufacturing methods. The Company maintains 28 manufacturing facilities in the United States and its territories, including six in Puerto Rico. The company also owns or operates shared distribution facilities throughout the world, including 12 in the United States and Puerto Rico and 119 located in 34 foreign countries.
Baxter International Inc. plans to invest approximately $60 million over the next five years to expand production capacity at its four manufacturing facilities (Shanghai, Suzhou, Guangzhou, Tianjin)in China to support sales growth in the company's Medication Delivery and Renal businesses. Baxter's sales in China, which were approximately $100 million in 2005, are expected to more than double by 2010, given the anticipated increase in demand for the company's intravenous solutions and peritoneal dialysis products.