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Good! I hope the new CEO cleans house and gets rid of this ineffective senior senior management team that acts like we are still in the 1980's. Terrible innovation/R&D, compliance and manufacturing issues, poor business leaders. Hope he brings in the "A" team finally.
 
















This guy will stay busy getting specific divisions ready to sell off to other companies. Get ready, Baxter: you've never had a leader like Joe. He's a wizard at "unlocking value" also known as selling off pieces of the acquired company.

Look for more RIF's in the upcoming year. If you're in Biosurgery you should start contacting headhunters. You can bet that a big company purchasing one of these divisions means they will merge the existing products into their reps' bags and lay off a ton of legacy Baxter people.
 




Amen to that. He WILL get rid of the low operating margin business units first. He will also look for complementing companies to buy. He is a good business person but he is NOT employee "friendly". If you are not contributing to grow the Top Line or Bottom Line, START looking for another job. I think he will be great for you guys.
 




anonymous said:
Amen to that. He WILL get rid of the low operating margin business units first. He will also look for complementing companies to buy. He is a good business person but he is NOT employee "friendly". If you are not contributing to grow the Top Line or Bottom Line, START looking for another job. I think he will be great for you guys.
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I hope that he brings in some of his own trusted people for senior management positions who are more business savvy. The current leadership are all a bunch of egocentric back-stabbers. He doesn't need this kind of bull to deal with in his new job.
 




anonymous said:
Amen to that. He WILL get rid of the low operating margin business units first. He will also look for complementing companies to buy. He is a good business person but he is NOT employee "friendly". If you are not contributing to grow the Top Line or Bottom Line, START looking for another job. I think he will be great for you guys.
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anonymous said:
Amen to that. He WILL get rid of the low operating margin business units first. He will also look for complementing companies to buy. He is a good business person but he is NOT employee "friendly". If you are not contributing to grow the Top Line or Bottom Line, START looking for another job. I think he will be great for you guys.
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Not so sure about "getting rid of low operating margin business units first" as isn't that primarily what is left after the spin of Baxalta? Thats what turns the lights on now isn't it? I think Renal and probably Biosurgery have much better margins but make up a much smaller part of sales.
 




The challenge for Baxter remains improving margins. It has a good collection of low-margin, slow-growth businesses. It can generate cash well, but to build margin, you need to either increase prices significantly (difficult today), build or acquire fast-growth/higher-margin business, or significantly cut costs. To us on the outside, Baxter's challenge has been an inconsistent manufacturing team/quality infrastructure (Colleague & Saline in a bag), poor investment and R&D decisions, and a complacent management team more intent in making their bonus than building their business. Our earnings model for Baxter also shows Renal as a net negative margin at EBITDA, not a good margin business at all.
 




I agree with above posters but keep in mind that Hospira is very similar to Baxter and was sold off for a pretty penny. So obviously there is value in low-margin, boring business that are mission-critical to healthcare delivery (like IV bags). If it weren't so, why would Baxter be hitting GPO's with massive price increases on prefilled bags?

I've also heard a lot of discussion here and elsewhere from Biosurgery reps hoping and praying that Medtronic will buy BBS. It might happen, but there are a few things to consider:

1. Disruptive technology is being introduced into the biosurgery space at an accelerating pace. This destabilizes BBS product offerings which are tied to thrombin availability and/or are a headache in terms of reconstitution and prep. In practical terms, why buy BBS when you can buy leapfrog-technologies for a fraction of the price and not have to RIF hundreds of employees?

2. Potential suitors don't necessarily want to be handcuffed to Shire/Baxalta around thrombin production and availability. This is a much larger issue than anyone in BBS cares to admit.

3. The prevailing culture in BBS is and has been dysfunctional for many years. You have a management team that is completely disconnected from what the market dynamics in terms of contracting and product options. This isn't worrisome, it's downright dangerous.

4. Re: the BBS salesforce, there are some good apples in this basket but there are far more rotten ones. Far too many RSS and TBM's treat each other in a highhanded manner. They think they know more than anyone else about what's going on but really don't know anything?

I don't think a spin-off would be beneficial for legacy BBS employees long-term.
 




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