Good morning, ladies and gentlemen, and welcome to Baxter International's third quarter 2023 earnings conference call. Your lines will remain in a listen-only mode until the question-and-answer segment of today's call. At that time, if you have a question, you will need to press Star, then the number 1 on your touchtone phone. If anyone should require assistance during the conference, please press Star, then 0 on your touchtone phone. As a reminder, this call is being recorded by Baxter and is copyrighted material. It cannot be recorded or rebroadcast without Baxter's permission. If you have any objections, please disconnect at this time. I would now like to turn the call over to Ms. Clare Trachtman, Senior Vice President, Chief Investor Relations Officer at Baxter International. Ms. Trachtman, you may begin. Good morning, and welcome to our third quarter of 2023 earnings conference call. Joining me today are José Almeida, Baxter's Chairman and Chief Executive Officer; Joel Grade, Baxter's newly appointed Executive Vice President and Chief Financial Officer; and Brian Stevens, Baxter's Senior Vice President, Chief Accounting Officer, Controller, and former interim CFO. On the call this morning, we will be discussing Baxter's third quarter 2023 financial results, along with our financial outlook for the fourth quarter and full year 2023. Please note that we closed the sale of our BioPharma Solutions, or BPS, business at the end of the third quarter, and results in the current and prior periods have been adjusted to reflect BPS as discontinued operations. Restated schedules reflecting that discontinued operations presentation are included in the appendix to our earnings presentation and available in the IR section of our website. With that, let me start our prepared remarks by reminding everyone that this presentation, including comments regarding our financial outlook for the fourth quarter and full year 2023, new product developments, including the impact and status of pending regulatory approvals, the status and potential impact of our ongoing strategic and recent pricing actions, business development, regulatory matters, and the macroeconomic environment, including commentary on continuing supply chain challenges and evolving customer capital spending trends, contain forward-looking statements that involve risks and uncertainties, and of course, our actual results could differ materially from our current expectations. Please refer to today's press release and our SEC filings for more details concerning factors that could cause actual results to differ materially. In addition, on today's call, non-GAAP financial measures will be used to help investors understand Baxter's ongoing business performance. A reconciliation of the Non-GAAP financial measures being discussed today to the comparable GAAP financial measures is included in the accompanying investor presentation and in our earnings release issued this morning, which are both available on our website. Now I'd like to turn the call over to Joe. Joe? Thank you, Clare, and good morning, everyone. We appreciate you taking the time to join us today. I am pleased to be joined this morning by Chief Accounting Officer and Controller, Brian Stevens, and to welcome our new Chief Financial Officer, Joel Grade, to the call. I will begin the call today with an overview of our third quarter performance and the continuing momentum of our ongoing transformational initiatives. I will also share perspective on the progress and potential of our proposed Kidney Care spin-off, including some context around recent developments in that therapeutic area. Brian will provide a more detailed account of Baxter's third quarter and financial outlook, and as always, we will close with your questions. To get started, Baxter reported solid third quarter results that came in ahead of our projections, both on the top and bottom line. Sales from continuing operations rose 3% on a reported basis and 2% on a Constant Currency basis. As Clare noted earlier, sales from continuing operations exclude Baxter's BioPharma Solutions, or BPS, business, which Baxter divested at the close of the quarter. Sales in the aggregate, including discontinued operations, also increased 3% on a reported basis and 2% on a Constant Currency basis. Our better-than-expected top-line performance was driven by positive demand for many of Baxter's products, combined with continued abatement of supply chain challenges. On the bottom line, third quarter aggregate adjusted earnings per share totaled $0.82, comprising EPS of $0.68 for continuing operations and $0.14 for discontinued operations. Adjusted EPS from continuing operations exceeded the top end of our outlook range of $0.65-$0.67, driven by end market stabilization and good sequential margin improvement across our business, which reflects strong execution against our strategic priorities. Overall, and especially when compared to what we've seen in recent quarters, we view the current market environment as relatively stable, though we continue to monitor hospital capital spending, particularly in light of an elevated interest rate environment. While we have seen sequential improvement in orders within our Care and Connectivity Solutions division, we continue to expect hospitals to exercise some degree of caution with their capital budgets.... The momentum we are building in financial performance is also reflected in the progress we're experiencing across the strategic priorities we laid out for you earlier this year. These initiatives in combination are focused on enhancing a strategic clarity, increasing operational efficiency, and accelerating innovation to deliver greater value for all of our stakeholders. During the third quarter, we achieved some pivotal milestones towards driving this improved performance. First, we've been hard at work realigning the businesses to simplify and streamline our operating model. These efforts are resulting in a more agile company with better visibility to our global markets and customers. In line with this realignment, today is the first time we formally report our results under the new operating model as four global, vertically integrated business segments: Medical Products and Therapies, Healthcare Systems and Technologies, Pharmaceuticals, and Kidney Care. Each segment now has global profit and loss accountability, dedicated commercial operations, and fully aligned research and development, manufacturing, supply chain, and functional support teams. This reorganization is already creating meaningful advantages in helping us set priorities, build alignment, and operationalize our strategy. Advantages they have already and are expected to continue to pay dividends going forward. Our new segments are also a reminder of our highly diversified portfolio with strong brands, a global presence, and high trust among clinicians and patients. The diversity and durability of our portfolio, focused on essential healthcare needs, helps fuel sustained demand on multiple fronts, allowing us to better weather challenges that can emerge while continuing to deliver on our mission of saving and sustaining lives. As discussed, this quarter, we also completed the divestiture of our BioPharma Solutions business, further streamlining our focus on our core businesses. We are deploying substantially all of our estimated net after-tax cash proceeds of approximately $3.7 billion to pay down debt in accordance with our stated capital allocation priorities. The third transformational action we laid out at the start of the year was the planned separation of what is now our Kidney Care segment. We are making significant progress and currently expect to launch Kidney Care as an independent, publicly traded company by July 2024. I continue to be impressed with the leadership of Chris Toth, who joined us in June as president of our Kidney Care segment and designated CEO of Vantive. In just 5 months, he has already proven himself as an astute, decisive, engaging leader. He has already surrounded himself with an outstanding team of experienced direct reports drawn from across Baxter and externally, and we expect to finalize the organizational structure for the new company by the end of the year. Meanwhile, the hard work of separating Kidney Care from Baxter is ongoing across commercial, legal, regulatory, supply chain, and numerous other key operational channels. Just like Baxter post-separation, Kidney Care will be positioned to benefit from heightened focus and the ability to pursue its unique investment priorities to serve patients and clinicians, drive growth and innovation, and create added value for shareholders. With this as context, I wanted to briefly share some perspective on recent headlines regarding GLP-1s, including Novo Nordisk's October announcement about its FLOW study and broader speculation about the future of dialysis therapy. We, like the rest of the dialysis community, continue to follow developments closely, and we are eager to see the full study results, which are expected to be published in the first half of 2024. Given Baxter's life-sustaining mission, we welcome any new therapeutic approaches that have the potential to improve the lives of patients, particularly those with chronic conditions. We also believe that it's premature to assume that these drugs, particularly given the full trial results, have yet to be published, will bring about any material shift in the need for dialysis services from a global market perspective. We believe that dialysis therapy will remain in demand and a critical element of patient care for the foreseeable future. Let me highlight a couple of data points that we believe are relevant. The existing data on demographics and disease patterns continue to consistently suggest that the global incidence of end-stage kidney disease, or ESKD, will continue to rise over the next 15-20 years. To provide a bit more context, current data suggest that the global ESKD incidence overall will continue to grow, driven by a greater than 35% expected increase in the prevalence of diabetes by 2040. At the same time, global demographic data show that the number of people over 65 years old should be increasing by approximately 75% globally between now and 2040, which is also expected to increase the number of potential patients at risk of developing ESKD.... Collectively, these macro changes suggest the global incidence of ESKD is expected to continue to rise over the next 15-20 years, even with important innovations in CKD therapeutics. We also believe these new drugs are doing important work in raising the awareness and prevalence of primary care discussions about CKD diagnosis and management. We welcome this focus because better-informed and empowered patients drive better preparation for dialysis, and studies have shown that the more informed the patient is about their treatment options, the more likely they are to choose home dialysis over other forms of dialysis when given the option. To that end, we're looking forward to seeing the new study data and understanding how it may provide additional options and benefits for patients with CKD. My excitement for the trajectory of Kidney Care remains high. Our thesis and sense of opportunity for an independent, standalone Kidney Care business remain unchanged from the day we first announced the spin. This has been a year of investment, of transformation, of important and sometimes difficult steps taken to strengthen our present and redefine our future. We knew when we first laid out this transformation in January, that we had to get it right, and less than a year later, our progress is evident and our path forward is clear. We have delivered on our BPS divestiture. We have implemented our verticalized segment structure, and we are well on our way toward achieving the planned Kidney Care separation. Our continued progress on this transformational journey is a credit to the exceptional hard work and commitment of our Baxter colleagues worldwide, who, as always, have my profound thanks. I'm confident these actions are strongly positioning Baxter and, in turn, Kidney Care to unlock meaningful long-term value for all stakeholders. Now, before we take a closer look at our third quarter financials and outlook for the remainder of the year, I want to recognize Brian Stevens for serving so well as interim CFO for over the past five months. We are also pleased to welcome incoming CFO, Joel Grade, whose wide-ranging experience and track record make him an outstanding fit at this time of transformation. I will first hand the call over to Joel for a few introductory comments before Brian then provides a more detailed overview of our results for the quarter. Thanks, Joe. Let me start by saying how excited I am to join all of you today for my first earnings call as Baxter's new CFO, and more importantly, how motivated I am to be joining Baxter during such an important point in its transformational journey. For many years, I've admired Baxter as an iconic company with an incredible mission to save and sustain lives. When the opportunity arose to join the team, I recognized that this was the right next step in my career. The position presented me with the ability to utilize my broad experiences in finance, operations, strategy, and transformation to help the company deliver on its strategic actions that Joe outlined earlier. While early, I've been extremely impressed with the talented and dedicated employees at Baxter and their unwavering passion for and commitment to our mission. In addition, I'm very optimistic about the numerous opportunities that exist for the company to increase long-term value for our stakeholders. Finally, I look forward to both speaking with and meeting many of you over the next coming months. Your perspective on our business and the surrounding market landscape will be incredibly valuable as we move forward in our transformation journey. With that, I'll turn it over to Brian to take us through the Q3 results. Brian, over to you. Thanks, Joel, and good morning, everyone. I'm happy to be joining the call this morning to provide some additional details on Baxter's third quarter financial performance, as well as commentary on our updated financial outlook. As Joe mentioned, we are pleased with our third quarter results, which came in ahead of our expectations. Third quarter 2023 global sales included $3.71 billion from continuing operations and $191 million from discontinued operations. Sales in the quarter increased 3% on a reported basis and 2% on a constant currency basis and compared favorably to our guidance. Sales performance in the quarter benefited from better-than-expected sales in medical products and therapies, particularly our infusion systems and IV solutions products, as well as continued strength in our pharmaceuticals business, driven by injectables and drug compounding. On the bottom line, adjusted earnings from continuing operations totaled $0.68 per share, decreasing 4% versus the prior year period and reflecting the ongoing operational improvements, primarily offset by the impact of increased interest expense. Adjusted EPS from continuing operations for the quarter came in ahead of our expectations of $0.65-$0.67 per share, primarily driven by sales and operational performance and partially offset by higher-than-expected tax rates. In the aggregate, inclusive of both continuing and discontinued operations, adjusted EPS was flat year-over-year and totaled $0.82 per share. Now I'll walk through the performance by our new reportable segments. Sales in our Medical Products and Therapies segment were $1.26 billion, increasing 4% on a constant currency basis. Within Medical Products and Therapies, sales from our Infusion Therapies and Technologies division, which includes our former Medication Delivery and Nutrition businesses, totaled $1 billion and increased 4% on a constant currency basis. Sales in the quarter benefited from strong growth in our infusion systems portfolio, driven by continued demand for our infusion pump hardware, including the Spectrum LVP. Sales from Advanced Surgery totaled $255 million and grew 3% on a constant currency basis, in line with expectations and surgical procedure growth. Moving on to Kidney Care, sales in the quarter were $1.1 billion and were flat year over year on a constant currency basis. Within Kidney Care, global sales for Chronic Therapies were $921 million, declining 3% on a constant currency basis. Sales performance in the quarter was impacted by a difficult comparison to the prior year period, which benefited from certain discrete items that totaled approximately $20 million. In addition, and consistent with our plans to enhance performance in our HD business, sales in the quarter reflect the exit of a distribution agreement in the U.S. earlier this year. Finally, performance in Chronic Therapies continues to be impacted by government-based procurement initiatives in China and a lower patient census in the region due to the pandemic. We estimate that collectively, these region-specific factors negatively impacted sales by more than $40 million in the quarter. Sales in our Acute Therapies business were $188 million, representing growth of 12% on a constant currency basis, with double-digit growth across all regions and reflecting a more stabilized environment for this business following significant heightened demand during the pandemic. For our Healthcare Systems and Technologies segment, sales in the quarter were $744 million and were flat to the prior year on a constant currency basis. Within the segment, sales in our Care and Connectivity Solutions division, which includes our former Patient Support Systems and Surgical Solutions businesses, were $443 million, decreasing 4% on a constant currency basis, primarily driven by a lower contribution from rental revenues and lower hospital capital spending as compared to the prior year period. Orders within our Care and Connectivity Solutions division continue to improve sequentially, increasing more than 10% as compared to the second quarter. Frontline Care sales in the quarter were $301 million, increasing 8% on a constant currency basis and reflecting the continued benefit of easing supply constraints. During the quarter, the business was able to continue to reduce its backlog, and we expect to exit the year with a more normalized backlog level. Sales in our Pharmaceuticals segment were $580 million, increasing 9% on a constant currency basis. Performance in the quarter reflected continued strength in our U.S. injectables portfolio, driven by new product launches, as well as continued strong demand for our services within our hospital compounding portfolio internationally. Other sales, which represent sales not allocated to a segment and primarily include sales of products and services provided directly through certain of our manufacturing facilities, declined more than 50% during the quarter. This lower level of sales reflects reduced demand in 2023 for certain contract manufacturing volumes and the termination of a loyalty arrangement following our acquisition of the rights to the underlying products. BPS third quarter sales, reported as discontinued operations, were $191 million, increasing 11% on a constant currency basis. Now moving through the rest of the P&L. Our adjusted gross margin from continuing operations totaled 41.7% and represented a decline of 70 basis points over the prior year, but improved 130 basis points sequentially. The year-over-year decline in gross margin reflects the impact of higher costs for raw materials, overhead, and labor, driven by the elevated inflationary impacts we've absorbed over the last couple of years. We were able to partially offset these cost increases through pricing and ongoing margin improvement programs in our integrated supply chain network. Adjusted SG&A totaled $820 million, or 22.1% of sales, a decrease of 50 basis points versus the prior year period. Performance in the quarter benefited from our ongoing transformation initiatives to enhance operational efficiencies, partially offset by higher bonus accruals under our annual employee incentive compensation plans compared to the prior year. Adjusted R&D spending in the quarter totaled $161 million and represented 4.3% of sales, an increase of 20 basis points versus the prior year. We have ramped up our R&D efforts, particularly increasing our investments in advancing our connected care technologies, and like SG&A, R&D expenses include the impact of higher employee incentive accruals as compared to the prior period. These factors resulted in an adjusted operating margin of 15.2%, a decrease of 50 basis points versus the prior year, but a sequential improvement of 200 basis points in operating margin as compared to the second quarter. Operating margin came in ahead of our expectations, primarily driven by top-line performance and enhanced execution on our initiatives focused on driving improved operational efficiency. Net interest expense totaled $128 million in the quarter, an increase of $24 million versus the prior year, driven by the impact of higher interest rates on our variable rate debt. Adjusted other non-operating income totaled $7 million in the quarter, compared to $4 million in the prior year period. Results were unfavorable to expectations, driven mostly by losses in foreign exchange. The adjusted tax rate in the quarter was 21.8%, compared to 22% in the prior year period. The year-over-year decrease, as well as the unfavorability versus expectations, was primarily driven by changes in geographic earnings mix. As previously mentioned, adjusted earnings from continuing operations totaled $0.68 and declined 4% versus the prior year, primarily reflecting the increase in cost of goods sold due to inflation, as well as higher interest expense and foreign exchange headwinds. With respect to our prior guidance, earnings favorability was driven by better-than-expected sales and operational efficiencies, partially offset by negative impacts from FX and a higher-than-expected tax rate in the quarter. Total company adjusted earnings of $0.82 per diluted share, which includes discontinued operations, was flat versus the prior year period. With respect to cash flow, in the first nine months of 2023, we've generated free cash flow of $666 million, including discontinued operations, compared to $293 million in the prior year period. We remain on track to more than double our free cash flow in 2023 from prior year levels. Now, let me conclude my remarks by discussing our outlook for the fourth quarter and full year 2023, including some key assumptions underpinning that guidance. For full year 2023, Baxter expects total sales growth from continuing operations of 1%-2% on a reported basis and approximately 2% on a constant currency basis. Foreign exchange is expected to be an approximate 50 basis points headwind to reported results on a full year basis. On a continuing operations basis, we expect full year adjusted operating margin of 14.3%-14.5%. With the closing of the BPS transaction and related debt paydown, we expect a reduction of net interest expense of approximately $45 million in the fourth quarter. For the full year, we expect net interest expense to be approximately $450 million. We anticipate a full year adjusted tax rate of 20.5%-21%. Lastly, we expect a diluted average share count of 508 million shares. We now expect full year adjusted earnings from continuing operations of $2.57-$2.60 per share. Specific to the fourth quarter of 2023, we expect global sales growth of approximately 1%-2% on a reported basis and approximately 1% on a constant currency basis. We expect adjusted earnings, excluding special items, of $0.85-$0.88 per diluted share. With that, we can now open up the call for Q&A. Thank you. We will now begin the question and answer session. If you have a question, please press star, then the number one on your touch tone phone. If you wish to remove yourself from the queue, again, press star one. If you are using a speakerphone, please lift the handset to ask your question. So that we may be respectful of everyone's time, please limit your comments to one question with one follow-up question, if necessary. We appreciate everyone's patience, and would like to provide as many of you as possible the opportunity to ask a question. We will pause for a moment while the list is being compiled. I would like to remind participants that this call is being recorded, and a digital replay will be available on Baxter International website for 60 days at www.baxter.com. Your first question comes from the line of Matt Miksic from Barclays. Your line is open. Thanks so much for taking the questions, and congrats on a really strong quarter here. Appreciate all the color around dialysis and your position on, you know, all these concerns around GLP-1. That's super helpful. Wondering if you could talk a little bit about, you know, the hoops and hurdles such that they are in front of you still to complete this spin of Kidney Care, Vantive, if you could maybe just comment on where you're at, what the next steps are, you know, and I have one follow-up if I could. Thank you, Matt. Good morning. Matt, our preparations for the proposed spin-off of the Kidney Care segment into its own company, Vantive, continues to progress well. We've made significant progress in the Vantive's operating model. We are designing the organization, finished, actually, and, and we are allocating personnel to the company in all operational levels, and so it continues to progress well. But consistent with board's exercise of its fiduciary duties, we'll continue to pressure test the related financials, including as a result of the evolving market conditions, to ensure we proceed in the interest of maximizing shareholder value. Of course. And a timeline for that sort of approval and presentation, does that happen in the first half of next year, at around the time of the board meeting? What should we expect? Matt, July 2024 is the end of July 2024 where we stand today, as the date. As far as we know today, the plan is July 2024. Fair enough. Then maybe just if I could ask a business line question. You know, the Hillrom businesses have been kind of under some pressure last year. Obviously, everyone's aware of that, for a variety of reasons. I'm just wondering if you could speak a little bit about how the back half is shaping up, relative to your expectations, and if we should expect, you know, things to continue to improve into year end, if you give us some idea of a cadence into the fourth quarter year or any sort of puts and takes or updates as to how the sort of the bounce back in that company in that part of the businesses has progressed. Thanks. Yeah, we, Matt, we've made a lot of progress. We redesigned the organizations. We put some really good people. We had to replace key positions as we thought that we needed higher caliber in some areas of the business, and we have those folks in place. We put Reaz Rasul as the segment president, we had Julie Brewer came in and brought a new team in place. So we feel that we've seen steady momentum in our Frontline Care business as well. The Frontline Care managed by Jim O'Connell is doing well with improved supply chain availability for electromechanical components, up 8% in the quarter and 7% year to date, and is doing well. CCS, which is the, we have the PSS and GSS, and the Care Communications, the former group that we used to call, it's called CCS today, as you see in your financials, has been impacted by lower rental revenues and a bit of softness in the capital spending. We're seeing improved, improved in order sequentially and expect that to continue in the fourth quarter into 2024. We have increased our investments in HST. As you notice, our, our research and development has, has increased there. We're going to continue to increase to get more innovation out, but I have to say that the whole overall business of HST is going to have a very large fourth quarter in terms of growth compared to the rest of the year, and bring them more in line with our expectations, including its, profitability, which will increase in the fourth quarter as the rest of the company. Great. Thanks for the color. A lot to cover, but I'll leave it there with you, and thanks again for taking the questions. Thanks, Matt. Thank you. Your next question comes from the line of Vijay Kumar from Evercore ISI. Your line is open. Hi, Joe. Good morning, and thanks for taking my question. I had one on a financial question and one on fiscal 2024. On the updated guidance here, what is fourth quarter assuming for interest expense? Is that stepping down? I'm getting to implied operating margins, if you know, close to 18%. That's a pretty big sequential step up. Does that math make sense to you? Yeah. Oh, yeah, you want it. So, Vijay, I'll just quickly - obviously, interest expense would be kind of a below the line item, so would not be part of our operating margin. Okay. But we are expecting. I'll let Brian get into the details in terms of what we're expecting, but as we said in the prepared remarks, we expect interest to be down about $45 million, net interest expense about $45 million in the fourth quarter. Yeah. And speaking to operating margin, yeah, you're correct. Our full-year operating margin guidance that we gave of 14.3%-14.5% implies a fourth quarter adjusted operating margin that exceeds 16%, versus the 15.2% adjusted operating margin we landed at in the third quarter. Really, the primary driver of that increase is the sequential improvement in our sales, which is, you know, typical seasonally. That provides us a lot better operating leverage against our cost base, and we're really encouraged to see the progress we've made in significantly expanding our margins in the second half of the year compared to the first half. And, you know, as we discussed on our last two earnings calls, that expansion is driven, not just by the higher sales, but also by cost favorability in our supply chain network, as we sold through a lot of our higher cost inventory during the first half of the year, and we're starting to see these savings from our margin improvement initiatives. We think is going to begin to slightly outpace inflation, starting in the fourth quarter, and then finally, driven by cost savings from the operational efficiency initiatives we've been undertaking in recent periods. Understood. Maybe just off of that question, Joe, for you on fiscal 2024, can you talk about the big variables? Like, what gets better, what gets worse in 2024? When can Baxter get back to that mid-single, you know, LRP thesis? I think the street's modeling 100 basis points on margin expansion- Mm-hmm. -based on some of Joel's comments here. Does that seem reasonable for you, for the street to be modeling 100 basis points margin expansion? So, Vijay, let's start with the top line. You know, we see stability in the market, in admissions, market growth rates. You saw some of the published numbers from other companies and hospitals. We see that as well, and we continue to have a pretty stable top line growth and consistently into 2024. So I'm confident about that. We have, excluding our Kidney Care, the other three business of Baxter have steady growth into next year. They will probably be higher than in 2023. Talking about the bottom line, if you see the sequential improvement in our bottom line, that will continue into 2024, and we continue to have cost reductions in our manufacturing facilities. We also get more stable volume and growth in volume, absorption of overhead, and some pricing opportunities in a couple of our businesses. I just highlight, for instance, the turnaround that we're seeing in our pharmaceutical business, that will continue with new product launches from 2023 into 2024, and also the good demand for a Spectrum pump from 2023 into 2024, just to mention a couple of things. And also a stabilization of our HST business that we see in terms of anniversarying some of the differences in end of fiscal years between Hillrom and Baxter, we start seeing the stabilization and the successful launch of our Progressa+. Just to give you a couple of things that give us more confidence in 2024 in terms of top and bottom line. Understood. Thanks, guys. Your next question comes from the line of Rick Wise from Stifel. Your line is open. Good morning, everybody. Good morning, Joe. It's a funny place to start, maybe, but and I know that Joel is fairly new to the job, but it's hard to resist asking both from your perspective, Joe, you know, what did you charge, Joel? What are you tasking him? Maybe talk about the, you know, your requests of him as he steps into the role. And Joel, I'd be curious to hear, you know, what kind of special sauce you're gonna bring to the job, and you know, where your priorities lie, and just your initial thoughts there. Rick, good morning. Good to hear your voice. You know, listen, when we're in the process of selecting the CFO for the company, we're looking for the ability for the person to get operationally into the details and continue to help the transformation of the finance organization. And if you look back at the finance organization in Baxter, we had a lot of things that we changed. We have initiated and have done successfully shared service organizations across the board. Also, the development of a new talent, the culture and the people are very important to Baxter. So Joel, coming to the company, need to understand that we are a complex operating company. We have a lot of manufacturing sites, we have a significant amount of R&D sites across the globe. It is a company that spans over 100 different countries in terms of sales, and more than 25-30 countries in terms of manufacturing and distribution alone. So somebody who had the intellect to combine that ability to understand complexity and get through it, and get operational efficiencies out of it, but continues to transform the finance organization and bring the talent and the culture to the point that we need the agility and the ability to cope with different inputs. Also, experience in the M&A space, that we continue to rotate the portfolio of Baxter, look at opportunities to transform Baxter's WAMGR into a higher WAMGR to better value for our shareholders. But I pass on to Joel to answer the other side of your question. Thank you. Great to be with all of you this morning, and I really look forward to meeting all of you in person, hopefully in the near future. So look, it's. I'm first of all, really excited to be here. You know, I think all the things that I thought about when I was going through the process with Joe and with the team have only been reiterated to me as I've gotten here and realized the wonderful opportunities that we have here at Baxter. Yeah, I'd say early impressions, certainly, as I said, lots, lots ahead of us. There's lots to do, but we have great people here and incredibly passionate people as it relates to the mission of this company, and again, really a lot of talent as well, in my early view. Yeah, I'd say my early focus, first of all, is gonna be about learning the business. You know, I'm newer to the industry, but certainly I'm gonna be focused heavily on making sure I understand and learn this complex, interesting business, so I can really make the best decisions to support the team. And from there, we're gonna focus a lot on how do we continue to accelerate growth? How do we accelerate consistent execution of things? And how do we think about, you know, where those mechanisms are to ultimately fund growth and value creation? Certainly be spending time understanding our talents and really just to focus the organization. You know, as Joe said, you know, the background I've gotten has both been rounded in finance, ops, strategy, M&A, and transformation. And so bringing all those things to the table here, for all the opportunities we have at Baxter, just really thrilled to be here. And, those are some of the areas I'm gonna be spending time focusing on moving forward. That's great. As one quick follow-up, if I could, sort of picking up on BJ's question earlier on 24. Just from one angle, when we think about current consensus ex KidneyCo, how do we think about the impact of the spin relative to dyssynergies? Does consensus adequately reflect, you know, numbers inclusive of the dyssynergy costs for when you think about the separation of the two companies and standalone stand-up costs, you know, said differently, will numbers need to come down? That's what I think people are concerned about. That's what I'm concerned about, and I think that's what folks are concerned about. Thanks, Joe. Appreciate it. Rick, maybe a few comments on that. You know, as Joe mentioned earlier, the process of the spin is, you know, going, you know, between now and we're planning to wrap up in July 2024. All the models are still in progress, and we are refining our dis-synergy and standalone cost estimates. We do plan to be providing additional information on this in connection with our 2024 guidance that we provide at year-end, as well as in connection with an Investor Day that we intend to have in advance of that spin taking place. So, no specific guidance on the particular quantification of dis-synergies at this time. And I want to underscore the fact that we're gonna continue to see progress on Baxter's top line and bottom line, ex those dyssynergies, because we continue to accumulate the cost improvements that we've put in place. Also, margin improvement programs, new product launches, the turnaround of pharmaceuticals, and the great demand that we're having for our Sigma Spectrum pumps. So there are then some really good catalytic catalyzers, I would say, in place that will make 2024 a better year than 2023. But I wanna make sure that you understand that we will have the dyssynergies, we're in process of putting them in place. Thank you, Joe. ... Our next question comes from the line of Pito Chickering from Deutsche Bank. Your line is open. Hey, good morning, guys, and thanks for taking my questions. On the Novum IQ pump, you now have two competitors with the next gen, with the next gen pumps in the market right now, yet your pump sales remain pretty robust in the quarter. At what point do you get worried about sort of losing market share to the other pumps? And then on your pump approval, any updates there? Is it worth pulling the 510(k) and refiling helps you with the process or any, any updates there? Peter, on the current infusion market, we have really good demand. Really, really good demand. We haven't lost 1% of market share at all. As a matter of fact, we gain market share. Our growth, you know, on infusion hardware growth has increased in the mid-teens, and for next year, the demand is pretty solid for our product. Remember, our product has significantly the right precision. The pump has the right precision, and it has what is very well liked in the marketplace. So we continue to get significant income interest from competitive accounts to our pump. Okay. On the specifically Novo, I want to make sure that we continue to work with the FDA. We have given them all the information required, we submitted with the package. We also give them all the incremental changes that we've made to the product, and we are in continued and regular conversations with them during their review period. This is where we are with Novo. But I just want to let you know, we really want to get this pump approved, and we're doing everything we can. But in the meantime, we have a very capable and really good pump out there that continues to gain market share and has very good demand, as you'll see this year, and you're going to see next year as well. So it's altogether a good situation for Baxter. Of course, we are working very hard to have the other pump approved. We want to have that approved. Okay, and then next question. Oil and diesel have been very volatile over the last few months, and why aren't giving 2024 guidance? If oil and diesel stay in this range, can you help us quantify the headwind for 2024 as the costs roll through the balance sheet and on the P&L, any ways of how you can offset those costs? Thank you. Yeah, we have put a significant amount of operational efficiencies in place, primarily in our logistics and transportation and supply group. We see the headwinds in parts of the business about the cost of energy, primarily fuel, but that has been more than offset by the programs that we've put in place. So, our initiatives are expected to, as I said, more than offset any incremental impact from rising oil and diesel prices. Thank you. Thank you. Your next question comes from a line of Robbie Marcus from JP Morgan. Your line is open. Oh, great. Thanks for taking the questions, and congrats on a nice quarter. Maybe to start, I know there's been a couple questions on 2024 that have been centered around margins, but I wanted to ask on the top line. At the Analyst Day, your long range plan was for 4%-5% organic top line growth. The Street's modeling 4% next year, coming off a year of around 2%. You know, what's your confidence level in being able to reach your long range plan targets? Don't phone it in. Robbie, good morning. We, we expect, as I say, ex our, our kidney business, that our margin will be in line with the expectations, okay, of the short term, and our objective for mid to long term for the company is 4%-5% as we improve numerator as well. But we have plans ex renal to get back at a growth close to what is today expected. So it is a good story there, as we have momentum in several different areas of the company with some product launches. As I, as I said, one of the biggest headwinds that we had experienced in the past few years, had been our pharmaceutical business, that we, we were able to turn around with great launches. So not giving guidance in 2024, but our expectations is to be around the expectations of the market in terms of growth, and our mid- to long-term expectations is to be 4%-5%. Great. I appreciate that. And, you know, I want to say it's really helpful to get the segment margins. Thank you for that. But want to ask on sort of the trends here. You know, we got year to date, and third quarter and as well as 22. How should we think about maybe some of the past few years and your expectations for margins in the segments here? And now with four segments and more ownership on the leadership within each, what are some of the examples of things they could do that weren't able to be done before to help improve margins on a segment basis? Thanks a lot. ... Robbie, we have a significant amount of programming in our manufacturing team, logistics team, also pricing initiatives, as well as new product launches. So it's a mixed volume and cost reduction story. We will be improving sequentially our margins, as you've seen, as we said. Remember, we're executing on everything that we said we're going to do. We are improving our margins. You're gonna see that in the fourth quarter as we had, we have guided, as well as you're gonna see that in 2024. So our confidence in continue to improve our margins, and once we have the business spun off, the remaining Baxter will have even further ability to continue to grow its margins. Okay, so because it's all about mix and new products and also pricing. So, our story is about the same, aspiration to 4%-5% in the top on the bottom... top line, I'm sorry, and the bottom line continue to improve sequentially and continue to find ways of getting productivity improvement through volume, mix, and pricing. Yeah. And Robbie, our plan right now, this third quarter, completing our verticalization and reporting out segment profitability was a big milestone for us, and we're extremely excited to be able to share that with you. And I think our long-term plan is when we get to year-end and we're putting out information, we do plan to go back and provide supplemental information on history to provide some better comparability as we've done in other situations in the past. But I think the way to generally think about it, as you're looking at, you know, the overall directionality of where Baxter margins have trended from the first half of the year, as we're selling through some of our higher cost inventory to the second half of the year, pretty much across all of our segments, you're gonna see, you know, sequential, you know, margin increases in the back half, you know, contributing not just to, you know, the items I pointed out before, but also to additional operating leverage, just from higher sales in the back half of the year. So stay tuned, and we will be providing you more of that information. Very helpful. Thanks a lot. Your next question comes from the line of Travis Steed from Bank of America Securities. Your line is open. Hey, Joe, thanks for taking the questions. I just wanted to follow up on something you said earlier in the call about on the renal spin, pressure testing and evolving market conditions to maximize shareholder value. I assume, you know, current market conditions, you're still okay with the renal spin going forward, given you're still talking about it. But maybe just talk about, you know, what's left of analysis to pressure test the renal spin and kind of what you meant by that comment. Well, as I mentioned before, it's the same answer. We are very much into the preparations. We have the team in place. We have put all the things in place. The company is working very hard. It is a complex separation, primarily not from the point of view of sales and marketing and the company itself, but it's all the manufacturing and distribution of it. So we're working on that. We have put people in place. We always have the fiduciary responsibility and duty as our board has it as well, to continue to pressure test the related financials and including, as a result of evolving market conditions, in the interest of maximizing shareholder value, to ensure that we proceed with that in mind. That is our number one responsibility when we do anything in Baxter. So yes, we're moving forward, but we are always making sure that that step is taken and being analyzed and checked. Travis, one thing I would just say, it's Joel. You know, this is also an opportunity to get me up to speed on all this. Again, I think there's a very, again, a very sound strategic rationale on the spin, and, but obviously, the team's taking me through a lot of the financials and a lot of those things. So, so part of this is also helping me, you know, bringing me up to speed in terms of some of the, the financial implications of it as well. So just to add that to this. Thanks. Helpful. Thanks for that clarification. And then, on 2024, I guess it sounds like you're confident in accelerating growth kind of above this, you know, 1%-2% that you're doing now, but not quite back to 4%-5%. So is there any examples you can give on reasons we should believe in kind of a little bit better growth in 2024? I guess Novum would be one of those. Anything else that could really kind of point out that can give some confidence that 2024 revenue growth can be above this kind of 1%-2% that you're seeing right now? Well, we're gonna anniversary some headwinds that we had in HST, primarily in the CCS business is one of them. Then we have some good launches in our pharmaceutical business, and we have continued demand increase for our Sigma Spectrum pump, not even taking into consideration Novum on this, okay? Just, just by what we currently have today, give us confidence in our growth next year, ex Renal, to be higher than what we have today across all the three segments, MPT, HST, and Pharma. You know what, Travis? Wanna just add a little context here, because the 1-2 you're pointing out, remember, does have some of the Kidney Care impact in it this year from some of those one-time payments we received last year. So that is kind of putting some pressure, if you think about just how much Kidney Care represents of Baxter contributing to that 1%-2%. ... In addition, within our other segment, you'll see that down pretty significantly. So I think for the base Baxter business, this is what Joel was alluding to, you are seeing nice progression this year. Within the HST business, I think you're seeing some momentum within the Frontline Care. I think as we get to next year, within the CCS business, we'll see some of that momentum going into 2024. Now, with respect to Kidney Care in 2024, that's one of the businesses we will anniversary some of those one-time payments, but we will have to continue to look at some of the other factors that impacted growth this year, including just sales within our China region that have been impacted by the government procurement initiatives, as well as just a rebasing following the pandemic last year. But just underscoring that the growth is in the remaining part of Baxter ex-renal is steadily improving, and our MPT business has been growing above market every quarter and continues to do well. So I want to make sure that you appreciate the momentum that we are embarking on, and we have shown with the third quarter results what we meant by that. Great. Thanks a lot for that. Thank you. Your next question comes from the line of Joanne Wuensch from Citi. Your line is open. Thank you so much, and good morning, and thank you for taking the questions. I have two. The first one is, when I take a look at Medical Products and Therapies year-over-year, the margin was down about 190 basis points. I think someone was heading towards this question earlier. I'm trying to figure out the trend in that, and if we should look at that continuing to be pressured as we look into next year. Then my second question has to do with some of your GPO contracts and pricing, and how we should think about restructuring or renegotiating those, and the potential for taking higher price. Thank you. So, Joanne, I'll first take the MPT question. I would say within this quarter, there was a little bit of mix, coupled with some increased investments within MPT, but we should see sequential improvement within that business as well as we go into the fourth quarter, similar to what we will see with most of the businesses as well. So kind of following the general trend of Baxter. But this quarter, on a year-over-year basis, if you look at it, just face some differences within mix and some increased investments. Yeah. And I think adding to that, you know, as Joel mentioned, you know, we have a strong pump on the market right now, and we're seeing, you know, mid-teens growth in some of the equipment sales that are coming through that business. So I think that is something that has helped us that we'll be continuing to focus on next year. Regarding the second question on pricing, there's some puts and takes here. You know, we do have some of our GPO contracts coming up for renewal, and, you know, we are committed to negotiating pricing that reflects, you know, current costs that have increased in recent years, and it's fair to both parties. You know, we did get some, you know, temporary price increasing during the... In recent periods, that's going to be rolling off, but shortly after that, we'll be entering into negotiation stage. So stay tuned on that, but we are committed to focusing on pricing as one of our levers in the future. Just closing on the GPO contract. We're very engaged, the two out of three being negotiated at the moment. They are for 2025, and as Brian said, we are looking at all the opportunities to compensate the company for the significant cost increase that we had experienced in 2022. Thank you. Your final question comes from the line of Danielle Antalffy from UBS. Your line is open. Hey, good morning, everyone. Thanks so much for taking the question. Joel, excited to meet you. You have a great team over there with Clare and company, so very excited to work together. My question is around the new operating model and how to think about, from a tangible perspective, how this changes the way Baxter invests in R&D. Should we be thinking about the real benefit of the operating model more on the accountability and cost side, or on the R&D side and elevating the TAM and WAMGR of the company over the next few years? I guess I'm trying to get an understanding of where the real benefit comes from this new operating model. That's it for me. Thanks so much. Thank you. It comes first from the accountability of each one of the segment presidents, who are fully accountable for the profit and losses of their business, including all the allocations that got put on. As you saw, it's a fully allocated PNL. So they make all the decisions on portfolio management within their, their spectrum of business. Also, all the decisions in investment research and development. So you look at HST, this year, we've been o- we have been investment- investing higher- with higher intensity in the HST to get products faster out faster. There is no two different parties to talk to. It all sits within the business. Also, a great advantage is to have the manufacturing supply chain reporting into this business. Despite the fact we still have a coordination overall for the company, we do have this business in the plants and the heads of those plants in the business, and they are in on the same page. That drives quite a bit of the cost reductions, the optimization of product design, because it's all within the same group. Some are fungible, some are not fungible, some are qualitative improvements that we see by communication. The other is really communication when you have set growth targets for CAGR for the business. It's easier that way. There's no two different parts. You don't have a region of the world that will decide on growth versus a business line that goes across the globe, which is trying to negotiate those numbers. So it's a very simple conversation. It's very easy to do it, and we're starting to see the effect in the creation of our annual operating plan at the moment. It's an easier and better process. Thank you. Thanks, everyone. Rob, this can conclude our call. Ladies and gentlemen, this concludes today's conference call with Baxter International. Thank you for participating.