Baxter’s profits soar thanks to forced mass vaccinations against the “swine flu” Baxter itself recommended to WHO


Baxter, whose executives sit as “observers” on a key WHO board that recommended mandatory vaccinations against the “swine flu” for the world, is reporting a huge increase in profits this year.

Baxter’s net income totaled $1.1 billion, an increase of 13 percent for the first six months of 2009, according to a report from July 16th.

The boost in earnings comes as the company reaps the fruits of government contracts for “swine flu” vaccinations that Baxter itself recommended to those same governments through the vehicle of WHO, underlining fears that Baxter, Novartis and GSK among others have formed a tight oligopoly that dominates not only the markets but also key agents in international and national government bodies.

Earlier this year, Baxter sent out 72 kilos of vaccine material contaminated with the live bird flu virus from its biosecurity facilities in Orth an der Donau, nearly triggering a global pandemic according to the Times of India. The WHO supplied Baxter with the live bird flu virus that it used to contaminate the vaccine material.

How can huge sums of government money be wasted in purchasing vaccines that not only do not meet safety standards, but that appear to be actively designed to be toxic with heavy metals and adjuvants – and that for a virus that has caused far fewer deaths than the normal seasonal flu?

How can WHO justify declaring a pandemic level 6 that allows it to mandate forced vaccinations around the world on the basis of a harmless flu?

There are reports that almost every single member of Congress in the USA receives “donations” from pharmaceutical companies such as Baxter.

Is it any different in countries like Austria where the Health Minister appears to be actively helping Baxter cover up its criminal activities and facilitating the company’s access to substantial funds in the form of lucrative contracts to supply vaccines for a pandemic Baxter itself almost started? How many Austrian politicians have offshore banking accounts, kickbacks and other sweeteners?

Here is the report in full on Baxter’s financial results:

Baxter Reports Strong Second Quarter 2009 Financial Results and Raises Full-Year Outlook
Second Quarter Earnings Per Diluted Share of $0.96 Exceeds Company Guidance

DEERFIELD, Ill.–(BUSINESS WIRE)–Jul 16, 2009 – Baxter International Inc. (NYSE:BAX) today reported strong financial results for the second quarter of 2009 and raised its full-year financial outlook.

Second quarter net income of $587 million increased 8 percent from the $544 million reported in the second quarter of 2008. Earnings per diluted share of $0.96 increased 13 percent from $0.85 per diluted share reported in the prior-year period, and compares favorably to the guidance the company previously provided of $0.93 to $0.95 per diluted share. This performance was the result of strong underlying fundamentals across the portfolio, improved margins, and benefits derived from the company’s ongoing share repurchase program.

Baxter’s worldwide sales of $3.1 billion declined 2 percent in the second quarter. Excluding the impact of foreign currency, worldwide sales increased 8 percent. Sales within the United States increased 7 percent to $1.3 billion, while international sales declined 8 percent to $1.8 billion. Excluding the impact of foreign currency, Baxter’s international sales grew 9 percent.

In the second quarter, BioScience revenues totaled $1.4 billion, which represents a 2 percent increase over the prior-year period. Excluding foreign currency, BioScience sales advanced 13 percent, reflecting strong double-digit gains across several core franchises, which offset weak sales of the company’s FSME vaccine, primarily in Germany. Key drivers of this performance include robust growth of antibody therapies and other specialty plasma therapeutics, strong sales of recombinant therapies, including ADVATE [Antihemophilic Factor (Recombinant), Plasma/Albumin-Free Method] for the treatment of hemophilia, as well as biosurgery products.

Medication Delivery sales of $1.1 billion declined by 3 percent (and excluding foreign currency increased 8 percent). Renal sales of $550 million declined 8 percent (and excluding foreign currency increased 4 percent). Contributing to these results was growth across multiple product categories including products used in peritoneal dialysis (PD) treatment, intravenous therapies, anesthesia products and injectable drugs.

Six-Month Results

For the first six months of 2009, Baxter’s net income totaled $1.1 billion, an increase of 13 percent, with earnings per diluted share of $1.79, an increase of 18 percent compared to $1.52 per diluted share reported in the prior-year period. On an adjusted basis, excluding a special item from 2008, Baxter’s net income increased 8 percent over the $1.0 billion reported in the same period last year. Adjusted earnings per diluted share for the six-month period increased 13 percent to $1.79 per diluted share, from $1.59 per diluted share in the prior-year period.

Baxter’s worldwide sales in the first half of the year totaled $5.9 billion, and declined 2 percent, from $6.1 billion in the prior-year period. Excluding the impact of foreign currency, sales growth for the first six months of 2009 was 7 percent. Sales within the United States totaled $2.6 billion, an increase of 6 percent over the same period last year, while international sales declined 7 percent (and excluding the impact of foreign currency increased 8 percent) to $3.4 billion.

Cash flow from operations totaled $1.0 billion in the first half of 2009, and the company has returned $1.2 billion to shareholders through both share repurchases and dividends during the first six months of the year. Baxter repurchased 16 million shares of common stock (or 13 million on a net basis) for approximately $866 million (or $743 million on a net basis), and paid dividends totaling $318 million, an increase of 16 percent versus the prior year.

“We continue to meet or exceed short-term financial goals, as reflected in the strong sales and earnings performance for the first half of 2009, while investing to create long-term value for shareholders,” said Robert L. Parkinson, Jr., chairman and chief executive officer. “These results and outlook validate the strength of the diversified healthcare model and reinforce our confidence in achieving longer-term objectives as we accelerate the pace of R&D investment.”

Advancing Innovation and Expanding Product Offering

The company continued to advance and expand its product pipeline across its business portfolio in the first half of 2009 with continued investment in research and development, augmented by new business development initiatives. Baxter’s investments in research and development through the second quarter totaled $443 million, reflecting an increase of 8 percent over the same period last year. Recent achievements include:

Completing patient enrollment in Baxter’s pivotal Phase III study of GAMMAGARD LIQUID with rHuPH20 (PH20) hyaluronidase enzyme for the treatment of primary immunodeficiency disorder (PID). Patients will receive monthly subcutaneous injections of Halozyme Therapeutics, Inc.’s PH20 with Baxter’s GAMMAGARD LIQUID.
Testing and evaluation of A/H1N1 influenza virus and the start of full-scale production of a commercial A/H1N1 pandemic vaccine using Baxter’s Vero cell culture technology.
Initiation of a Phase III study following successful completion of a Phase II study evaluating TISSEEL fibrin sealant as a hemostatic agent in vascular surgery. These studies are being conducted for submission to the Food and Drug Administration (FDA) to support a broad hemostasis indication for this product in the United States.
Signing a definitive agreement with Edwards Lifesciences Corporation for the acquisition of certain assets related to Edwards’ hemofiltration product line, also known as Continuous Renal Replacement Therapy (CRRT). CRRT provides a method of continuous yet adjustable fluid removal that can gradually remove excess fluid and waste products that build up with the acute impairment of kidney function, and is usually administered in an intensive care setting in the hospital.
Third Quarter and Full-Year 2009 Outlook

Baxter also announced today its guidance for third quarter 2009 and updated its guidance for the full year.

For the third quarter of 2009, Baxter expects sales growth, excluding the impact of foreign currency, of approximately 7 to 8 percent. Based on current foreign exchange rates, the company expects reported sales including the impact of foreign currency to be approximately flat over the prior-year period. Baxter also expects to achieve earnings per diluted share of $0.95 to $0.97, before any special items, in the third quarter.

For the full year, Baxter continues to expect sales growth, excluding the impact of foreign currency, to be approximately 7 to 8 percent. Based on current foreign exchange rates, Baxter expects reported sales growth to be approximately flat. In addition, the company now expects earnings per diluted share of $3.76 to $3.80, before any special items, and continues to expect cash flow from operations to total more than $2.6 billion.

A webcast of Baxter’s second quarter conference call for investors can be accessed live from a link on the company’s website at http://www.baxter.com beginning at 7:30 a.m. CDT on July 16, 2009. Please visit Baxter’s website for more information regarding this and future investor events and webcasts, including the company’s Investor Conference to be held in Chicago on September 16, 2009.

Baxter International Inc., through its subsidiaries, develops, manufactures and markets products that save and sustain the lives of people with hemophilia, immune disorders, infectious diseases, kidney disease, trauma, and other chronic and acute medical conditions. As a global, diversified healthcare company, Baxter applies a unique combination of expertise in medical devices, pharmaceuticals and biotechnology to create products that advance patient care worldwide.

This release includes forward-looking statements concerning the company’s financial results and outlook for 2009. The statements are based on assumptions about many important factors, including the following, which could cause actual results to differ materially from those in the forward-looking statements: demand for and market acceptance risks for new and existing products, such as ADVATE, and other technologies; future actions of regulatory bodies and other governmental authorities, including the FDA and foreign counterparts, that could delay, limit or suspend product development, manufacturing or sales or result in sanctions; product quality or patient safety concerns leading to product recalls, withdrawals, launch delays, litigation, or declining sales; production yields, regulatory clearances and customers’ final purchase commitments with respect to the company’s pandemic vaccine; product development risks; inventory reductions or fluctuations in buying patterns by wholesalers or distributors; the impact of geographic and product mix on the company’s sales; the impact of competitive products and pricing, including generic competition, drug reimportation and disruptive technologies; reimbursement policies of government agencies and private payers; the availability of acceptable raw materials and component supply; the ability to enforce company patents; patents of third parties preventing or restricting the company’s manufacture, sale or use of affected products or technology; any impact of the commercial and credit environment on Baxter and its customers; foreign currency fluctuations and other risks identified in the company’s most recent filing on Form 10-K and other Securities and Exchange Commission filings, all of which are available on the company’s website. The company does not undertake to update its forward-looking statements. Financial schedules are attached to this release and available on the company’s website.

BAXTER INTERNATIONAL INC.
Consolidated Statements of Income
Three Months Ended June 30, 2009 and 2008
(unaudited)
(in millions, except per share and percentage data)

Three Months Ended
June 30,
2009 2008 Change

NET SALES $3,123 $3,189 (2%)

COST OF SALES 1,485 1,562 (5%)

GROSS MARGIN 1,638 1,627 1%
% of Net Sales 52.4% 51.0% 1.4 pts

MARKETING AND ADMINISTRATIVE EXPENSES 660 703 (6%)
% of Net Sales 21.1% 22.0% (0.9 pts)

RESEARCH AND DEVELOPMENT EXPENSES 231 222 4%
% of Net Sales 7.4% 7.0% 0.4 pts

NET INTEREST EXPENSE 24 25 (4%)

OTHER (INCOME) EXPENSE, NET (1) 1 N/M

PRE-TAX INCOME 724 676 7%

INCOME TAX EXPENSE 135 128 5%
% of Pre-Tax Income 18.6% 18.9% (0.3 pts)

NET INCOME 589 548 7%
LESS: NONCONTROLLING INTERESTS 2 4 (50%)
NET INCOME ATTRIBUTABLE TO BAXTER $587 $544 8%

BASIC EPS $0.97 $0.87 11%
DILUTED EPS $0.96 $0.85 13%

WEIGHTED-AVERAGE NUMBER OF COMMON SHARES OUTSTANDING
Basic 607 626
Diluted 612 638

Note: The consolidated statements of income reflect the January 1, 2009 adoption of a new accounting standard that requires a company to present a consolidated net income measure that includes the amount attributable to noncontrolling interests (historically referred to as minority interests) for all periods presented. Prior to January 1, 2009, the noncontrolling interests’ share of net income was included in other (income) expense, net.

BAXTER INTERNATIONAL INC.
Consolidated Statements of Income
Six Months Ended June 30, 2009 and 2008
(unaudited)
(in millions, except per share and percentage data)

Six Months Ended
June 30,
2009 2008 Change

NET SALES $5,947 $6,066 (2%)

COST OF SALES 2,821 3,059 (8%)

GROSS MARGIN 3,126 3,007 4%
% of Net Sales 52.6% 49.6% 3 pts

MARKETING AND ADMINISTRATIVE EXPENSES 1,271 1,343 (5%)
% of Net Sales 21.4% 22.1% (0.7 pts)

RESEARCH AND DEVELOPMENT EXPENSES 443 412 8%
% of Net Sales 7.4% 6.8% 0.6 pts

NET INTEREST EXPENSE 50 42 19%

OTHER EXPENSE (INCOME), NET 1 (3) N/M

PRE-TAX INCOME 1,361 1,213 12%

INCOME TAX EXPENSE 254 233 9%
% of Pre-Tax Income 18.7% 19.2% (0.5 pts)

NET INCOME 1,107 980 13%
LESS: NONCONTROLLING INTERESTS 4 7 (43%)
NET INCOME ATTRIBUTABLE TO BAXTER $1,103 $973 13%

BASIC EPS $1.81 $1.55 17%
DILUTED EPS $1.79 $1.52 18%

WEIGHTED-AVERAGE NUMBER OF COMMON SHARES OUTSTANDING
Basic 610 629
Diluted 616 641

ADJUSTED PRE-TAX INCOME (excluding specified item) $1,361 $1,266 A 8%
ADJUSTED NET INCOME ATTRIBUTABLE TO BAXTER (excluding specified item) $1,103 $1,018 A 8%
ADJUSTED DILUTED EPS (excluding specified item) $1.79 $1.59 A 13%

A Refer to page 9 for a description of the adjustment and a reconciliation of GAAP (generally accepted accounting principles) measures.

Note: The consolidated statements of income reflect the January 1, 2009 adoption of a new accounting standard that requires a company to present a consolidated net income measure that includes the amount attributable to noncontrolling interests (historically referred to as minority interests) for all periods presented. Prior to January 1, 2009, the noncontrolling interests’ share of net income was included in other expense (income), net.

BAXTER INTERNATIONAL INC.
Note to Consolidated Statement of Income
Six Months Ended June 30, 2008
Description of Adjustment and Reconciliation of GAAP to Non-GAAP Measures
(unaudited)
(in millions, except per share and percentage data)

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