Baxter(BAX)2025-02-21 22:15Research and Development - R&D expenditures were 518 million in 2023, and $450 million in 2022, reflecting a focus on enhancing future growth through clinical differentiation [43]. - The company is working to create a more resilient supply chain and may consolidate R&D facilities as part of its new operating model [43]. Financial Performance and Challenges - The company faced challenges in recovering cost increases for raw materials and components due to contractual limits and market forces, negatively impacting profit margins in 2022 and 2023 [36]. - The company’s profit margins were adversely affected in Q4 2024 due to increased supply chain costs related to ongoing recovery efforts [36]. - The company’s ability to increase prices is constrained by global healthcare cost containment efforts, including price controls and competitive tenders [38]. Workforce and Talent - The company employs approximately 38,000 people globally, with 15,000 in the United States and 23,000 outside the United States, emphasizing the importance of talent in achieving strategic objectives [53]. Regulatory Environment - The company is subject to extensive regulation by government agencies, including the FDA and EMA, impacting the marketing and sale of its products [50]. Competitive Landscape - The company’s competitive advantages include a broad product offering and strong relationships with customers, but it faces substantial competition from both domestic and international healthcare companies [37]. - The company has purchasing agreements with major Group Purchasing Organizations (GPOs) in the U.S., which may limit price increases and create competition from other suppliers [33]. Corporate Governance and Transparency - The company provides free access to its Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q, and Current Reports on Form 8-K on its website [56]. - Reports are also available via EDGAR through the SEC website, ensuring transparency and accessibility for stakeholders [56]. - Corporate Governance Guidelines and Code of Conduct are accessible on the company's website, promoting accountability and ethical standards [56]. - Stockholders can request printed materials, indicating the company's commitment to shareholder communication [56]. - The company incorporates market risk disclosures in its financial reporting, highlighting its awareness of financial instrument risks [374]. Corporate Responsibility - The company’s corporate responsibility strategy focuses on empowering patients, protecting the planet, and championing communities, with a commitment to report progress annually [48].