Gross Margin Expansion

• Product portfolio mix

• Internal manufacturing

• Improved yields

• Reduced cycle time

G.I. Sourced

Material Gen I

(Base Case)

100%

Self-

Manufactured

Gen I

Recombinant Factor VIII

BioScience

+20%

Total Baxter

50%+

• Business mix

• Product portfolio mix

• Improved yields

• Strategic sourcing

• Vertical integration

• Best cost

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