44th Annual J.P. Morgan Healthcare Conference Andrew Hider President & Chief Executive Officer January 12, 2026 1 Safe Harbor Statement This presentation includes forward-looking statements concerning the company's financial results (including the company's net leverage target and estimated timing considerations) and operational, business development and regulatory activities. These forward-looking statements are based on assumptions about many important factors, including the following, which could cause a ...

Core Viewpoint - Baxter International Inc. is preparing to present at the J.P. Morgan 2026 Healthcare Conference, which may influence its stock performance by providing insights into its future strategies and innovations [1] Group 1: Stock Performance - Evercore ISI maintains an "Outperform" rating for Baxter, with a revised price target of $23, indicating a potential upside of approximately 14.86% from the current stock price of $19.84 [2] - Baxter's current stock price is $20.59, reflecting a slight increase of 0.91% or $0.19, with fluctuations between $20.08 and $20.62 on the same day [3] - Over the past year, Baxter's stock has experienced significant volatility, with a high of $37.74 and a low of $17.40 [3] Group 2: Market Position - Baxter's market capitalization is approximately $10.58 billion, indicating its substantial presence in the healthcare market [4] - The trading volume for Baxter on the day is 9,514,299 shares, demonstrating active investor interest [4] - The upcoming presentation at the J.P. Morgan Healthcare Conference is highly anticipated, with stakeholders keenly observing for announcements that could impact stock trajectory [5]

Core Viewpoint - Baxter International Inc. is set to present at the J.P. Morgan 2026 Healthcare Conference, highlighting its role as a global leader in medtech and its commitment to healthcare innovation [1]. Group 1: Company Overview - Baxter operates in various healthcare settings, providing essential solutions in hospitals, physician's offices, and other care sites [2]. - The company has a long-standing reputation, having served customers for nearly a century as a vital and trusted partner in healthcare [2]. - Baxter's portfolio includes connected solutions, medical devices, and advanced injectable technologies, which are relied upon by millions of patients and healthcare providers [2]. - The company employs approximately 38,000 team members dedicated to its mission of saving and sustaining lives [2]. Group 2: Upcoming Events - Andrew Hider, Baxter's president and CEO, is scheduled to present at the conference on January 12, 2026, at 2:15 p.m. Pacific Time [1]. - The live webcast of the presentation will be accessible on Baxter's website and available for replay until July 11, 2026 [1].

Fund Performance - Artisan Mid Cap Value Fund's Investor Class returned 0.97%, Advisor Class returned 0.98%, and Institutional Class returned 0.97% in Q3 2025, underperforming the Russell Midcap Value Index which returned 6.18% [1] - The equity markets rallied in Q3, driven by strong corporate earnings, rising AI capital expenditures, and expectations of economic support from US fiscal policy and lower interest rates [1] Company Focus: Baxter International Inc. - Baxter International Inc. (NYSE:BAX) had a one-month return of 7.38% but lost 34.25% over the last 52 weeks, closing at $19.50 per share with a market capitalization of $10.024 billion on January 2, 2026 [2] - The healthcare sector, including Baxter, was a significant source of underperformance for the fund, with three of the four biggest detractors coming from this sector [3] Company Challenges and Strategy - Baxter has faced growth challenges post-COVID due to supply-chain issues and delayed normalization of procedure volumes, leading to disappointing performance [3] - The company has undergone a multiyear restructuring, selling non-core operations to become a more profitable growth entity, although this has created confusion among investors [3] - Baxter's stock is currently trading at a single-digit multiple on forward earnings, near its lowest valuation levels, and the company is using free cash flow to pay down debt and return capital to shareholders [3]

Core Insights - Baxter International Inc. is considered one of the top cheap stocks under $20, with a current price target of $19.00 set by Wells Fargo analyst Larry Biegelsen, who maintains a Hold rating on the stock [1] - Recent data from a collaboration with The University of Texas Medical Branch indicates that the integration of smart infusion pumps with hospital electronic medical records has positively impacted clinician productivity, patient safety, and programming compliance [1][2] - Morgan Stanley analyst Patrick Wood has reduced the price target for Baxter to $15 from $19 while maintaining an Underweight rating, citing a solid industry setup for MedTech going into 2026 [3] Company Overview - Baxter International Inc. offers a diverse portfolio of essential healthcare products, including parenteral nutrition therapies, dialysis therapies, inhaled anesthetics, generic injectable pharmaceuticals, sterile IV solutions, infusion systems, surgical products, patient monitoring technologies, and respiratory health devices [4] - The company's operations are segmented into regions: Americas, Europe, Middle East and Africa (EMEA), Asia-Pacific (APAC), and Hillrom [4] Market Position - The findings from the smart pump EMR integration study suggest a reduction in patient safety alerts and programming time, highlighting the potential of connected infusion therapy to enhance patient safety and alleviate clinician burnout [2] - Analysts believe that the MedTech sector is well-positioned for growth, supported by major product cycles and favorable hospital spending environments [3]

Core Insights - Baxter International (BAX) is undergoing a transition after divesting its Kidney Care segment, facing near-term execution challenges while exploring long-term structural opportunities [2] - The company's shares have decreased by 37.1% over the past six months, contrasting with a 4.6% decline in the industry and a 9% increase in the S&P 500 Index [3] Positive Factors Driving Prospects - The Advanced Surgery business has shown strong performance, achieving 11% global growth in Q3 due to high demand for hemostats and sealants, alongside steady procedural volumes [4] - Healthcare Systems & Technologies reported a 30% year-over-year increase in U.S. capital orders, indicating robust demand for surgical solutions and a strong hospital presence [4] - Management's decision to significantly reduce dividends starting in 2026 aims to prioritize deleveraging, potentially freeing over $300 million annually to enhance financial flexibility [5] - The introduction of Baxter GPS, a growth and performance system, emphasizes operational discipline and continuous improvement across divisions [9] Key Challenges - The ongoing disruption related to the Novum IQ large-volume pump is a significant operational challenge, with delays expected to extend beyond 2025, impacting sales and customer confidence [10] - Demand for IV solutions in the U.S. remains below pre-Hurricane Helene levels due to fluid conservation practices, with gradual recovery anticipated, complicating near-term growth forecasts [11] - The Pharmaceuticals segment is experiencing margin pressure as growth shifts towards lower-margin compounding services, while higher-margin products face softness, particularly in the U.S. [12] Estimate Trend - The Zacks Consensus Estimate for 2025 revenues is projected at $11.07 billion, reflecting a 13.9% decline from the previous year [13] - The consensus estimate for adjusted earnings per share (EPS) is $2.36, indicating a 24.9% increase from the prior year [13]

Core Thesis - Baxter International Inc. is viewed positively despite recent setbacks, with the stock trading at $19.29 and a forward P/E of 8.12, indicating potential undervaluation [1][2] Company Overview - Baxter operates in essential medtech markets such as IV solutions and infusion pumps, characterized by non-discretionary demand and strong customer relationships [2] - The stock has reached multi-decade lows due to recent challenges, but the selloff is seen as peak capitulation rather than a sign of structural issues [2] Recent Performance - Under new CEO Andrew Hider, Baxter reset expectations in Q3 by cutting guidance, reducing the dividend to save over $300 million annually for deleveraging, and acknowledging slower recoveries in IV fluids and the Novum IQ infusion pump [3] - Reported sales missed lowered expectations, with full-year growth revised to 1-2%, but margins improved, free cash flow turned positive, and operating discipline strengthened [3] Market Position and Outlook - The challenges affecting sentiment are considered temporary and fixable, with the Novum IQ pump previously gaining market share, and IV fluid production fully restored [4] - Demand for capital spending from hospitals remains strong, tariffs are manageable, and deleveraging efforts are on track [4] Strategic Direction - Hider is implementing operational rigor similar to Danaher, positioning Baxter for a self-help story leading into a 2026 investor reset [5] - The stock is trading at approximately 9-10x forward earnings, presenting an asymmetric risk-reward opportunity as temporary issues are mispriced as permanent impairments [5]

Group 1: Baxter International, Inc. - Baxter International, Inc. is under investigation by Bragar Eagel & Squire, P.C. due to a class action complaint filed on October 16, 2025, alleging misleading statements regarding the Novum LVP device [6] - The complaint claims that Baxter failed to disclose systemic defects in the Novum LVP, which caused malfunctions and exposed patients to serious risks [6] - Allegations include that Baxter was aware of multiple device malfunctions and that their remedial measures were inadequate, leading to a heightened risk of product withdrawal and sales suspension [6] Group 2: Molina Healthcare, Inc. - Molina Healthcare, Inc. is also being investigated following a class action complaint filed on October 3, 2025, which alleges misleading statements about the company's business and operations [6] - The complaint highlights undisclosed adverse facts regarding Molina's medical cost trend assumptions and a dislocation between premium rates and medical costs [6] - It is claimed that Molina's growth was dependent on limited utilization of various health services, and that financial guidance for fiscal year 2025 was likely to be cut as a result [6]

Core Viewpoint - A class action securities lawsuit has been filed against Baxter International, Inc. due to alleged securities fraud affecting investors between February 23, 2022, and October 29, 2025 [1] Group 1: Lawsuit Details - The lawsuit alleges that Baxter's product, the Novum LVP, had systemic defects leading to malfunctions such as underinfusion, overinfusion, and non-delivery of fluids, posing serious risks to patients [2] - It is claimed that Baxter was aware of multiple device malfunctions, injuries, and deaths related to these defects [2] - Baxter's attempts to address these issues through customer alerts were deemed inadequate, as design flaws persisted and continued to harm patients [2] - The lawsuit suggests that there was an increased risk of customers being instructed to take Novum LVPs out of service and that Baxter would halt all new sales of these pumps [2] - Baxter's statements regarding the safety, efficacy, product rollout, customer feedback, and sales prospects of the Novum LVPs were allegedly materially false and misleading [2] Group 2: Next Steps for Investors - Investors who suffered losses in Baxter International, Inc. during the specified timeframe have until December 15, 2025, to request to be appointed as lead plaintiff [3] - Participation in the lawsuit does not require serving as a lead plaintiff, and class members may be entitled to compensation without any out-of-pocket costs [3] Group 3: Firm Background - Levi & Korsinsky, LLP has a history of securing hundreds of millions of dollars for shareholders and has extensive expertise in complex securities litigation [4] - The firm has been recognized in ISS Securities Class Action Services' Top 50 Report for seven consecutive years as one of the leading securities litigation firms in the United States [4]

Core Viewpoint - Rosen Law Firm is reminding investors who purchased Baxter International Inc. common stock between February 23, 2022, and July 30, 2025, of the December 15, 2025, lead plaintiff deadline for a class action lawsuit [1] Group 1: Class Action Details - Investors who bought Baxter common stock during the specified Class Period may be eligible for compensation without any out-of-pocket fees through a contingency fee arrangement [2] - To participate in the class action, investors can visit the provided link or contact the law firm for more information [3][6] - A lead plaintiff must file a motion with the Court by December 15, 2025, to represent other class members in the litigation [3] Group 2: Law Firm Credentials - Rosen Law Firm emphasizes the importance of selecting qualified legal counsel with a successful track record in securities class actions [4] - The firm has achieved significant settlements, including the largest securities class action settlement against a Chinese company at the time, and has consistently ranked highly in securities class action settlements [4] - In 2019, the firm secured over $438 million for investors, showcasing its capability in recovering funds for clients [4] Group 3: Case Allegations - The lawsuit alleges that Baxter misled investors by failing to disclose systemic defects in the Novum IQ Large Volume Pump, which led to serious malfunctions and risks to patient safety [5] - Baxter was reportedly aware of multiple device malfunctions and injuries but did not take adequate remedial measures, leading to a heightened risk of product recalls and halting new sales [5] - The firm claims that Baxter's statements regarding the safety and efficacy of the Novum LVPs were materially false and misleading, resulting in investor damages when the truth was revealed [5]