Q&A with norbert riedel R&D at <strong>Baxter</strong>How does research and development at <strong>Baxter</strong> support sustainability?Norbert G. Riedel, Ph.D.Corporate Vice President andChief Scientific OfficerResearch and development (R&D) is the engine that drives our company’s innovation.For <strong>Baxter</strong>, there is a clear connection to sustainability due to the nature of our products,which help save and improve people’s lives.What are some examples of recent R&D projects?One clinical trial is to study treating advanced heart disease by injecting the patient’sown stem cells into his or her heart to rejuvenate it. We also developed the first needlelessintravenous (IV) connector with an antimicrobial coating, which has been shown to kill99.9 percent of specific microorganisms known to cause hospital-acquired bloodstreaminfections. We're advancing less invasive methods of delivering critical fluids anddrugs to patients. One new delivery method uses a needle injection just below the skin,as opposed to the vein. This technology can increase the absorption and dispersion offluids and drugs through subcutaneous infusion, offering a potential alternative to IVadministration for patients with difficult venous access (DVA). To improve care for kidneyfailure patients in developing markets, this year <strong>Baxter</strong> plans to launch a new automatedperitoneal dialysis (APD) cycler. The system, which will be launched first in India, willincrease access to overnight dialysis in developing countries. We’re also working on a homehemodialysis platform.How does R&D take into account environmental protection?We consider the environment throughout the R&D process. For example, we look for partsand components that can be manufactured and disposed of in an environmentally responsibleway. And we work closely with manufacturing on issues such as materials selection.What role does bioethics play?Our Bioethics Guiding Principles govern our R&D efforts. If issues arise that might lead usto reconsider that policy, as chief scientific officer I work with our chief executive officerto recommend any changes, which we then present to the Public Policy Committee of <strong>Baxter</strong>'sboard of directors.Where does <strong>Baxter</strong> stand regarding animal testing?Regulations around the world require animal testing to demonstrate a drug or medicaldevice’s safety and efficacy before it can be used in humans. We follow strict requirementsfor humane treatment and limit animal testing by using computer simulations and otheralternative methods when feasible.How do you foster a culture of innovation within R&D at <strong>Baxter</strong>?We provide our scientists with state-of-the-art technology and encourage them to advancetheir scientific interests and careers through activities such as publishing scientificpapers, attending conferences and writing patents. Ultimately, our researchers must havethe goal of translating their research into a product that is meaningful to patients andhealthcare providers.See the expanded interview in the full report online.24 BAXTER <strong>2007</strong> sustainability report | Product Responsibility
Manufacturing<strong>Baxter</strong> has extensive environment, health and safety (EHS) programs to minimizeenvironmental impacts and ensure employee safety during the manufacture of <strong>Baxter</strong>’sproducts. <strong>Baxter</strong> also influences its suppliers’ manufacturing practices through its BusinessPractice Standards for Suppliers and participation in the Green Suppliers Network. Seethe Environment, Health and Safety and Supply Chain sections in the full report online formore detail.Product Transport and Packaging<strong>Baxter</strong> works to reduce the energy usage and environmental impact of transporting vastamounts of raw materials and more than 100 million cases of finished products each yearthroughout the company's global supply chain. This includes using "intermodal transport"to shift toward more energy efficient modes such as rail; increasing capacity utilization;implementing pallet efficiency programs and switching to plastic slip sheets when feasible;and improving packaging environmental performance through materials reduction andsubstitution. See more information in the full report online.Product Use<strong>Baxter</strong>’s Center of Excellence for Advertising and Promotion manages the company’scompliance with promotional regulations companywide. <strong>Baxter</strong>‘s advertising and promotionstandards for all business groups in the United States incorporate best practices frominside and outside the company. The company uses a centralized process to ensure thatmarketing materials for distribution in Europe are accurate, appropriate and comply with theInternational Federation of Pharmaceutical Manufacturers Association (IFPMA) Code ofPharmaceutical Marketing Practices.If a company is not in compliance with advertising and promotion regulations, the U.S. Foodand Drug Administration (FDA) may initiate enforcement actions such as an untitled letter,the least serious, or a warning letter, an elevated enforcement action. In <strong>2007</strong>, as in 2003,2005 and 2006, <strong>Baxter</strong> did not receive any untitled or warning letters. In 2004, the companyreceived two warning letters. Comparable information is not commonly available outsidethe United States. See more information in the full report online.above Susan Craig (right), a <strong>Baxter</strong> clinicaleducation consultant, helps Roberta Vanzatiof Milan, Italy, prepare and administer totalparenteral nutrition therapy to daughterBeatrice, who must receive 85 percent ofher nutrients intravenously due to shortbowel syndrome.Product End-of-LifeMany of the electronic medical products <strong>Baxter</strong> sells, such as intravenous infusion pumps,are well suited to repair and refurbishment after the original customer has finished usingthem. In Europe in <strong>2007</strong>, <strong>Baxter</strong> conducted about 38,300 maintenance events and repairson products (an increase of 9 percent from 2006) with a cumulative weight of approximately1,600 metric tons (an increase of 7 percent from 2006). In the United States, <strong>Baxter</strong>refurbished approximately 18,300 renal machines, blood collection devices and nutritioncompounding machines in <strong>2007</strong>, a decrease of 20 percent compared to 2006.<strong>Baxter</strong> has now introduced even more comprehensive product take-back in Europe, inline with European Union Waste Electrical and Electronic Equipment (WEEE) Directiveobligations. <strong>Baxter</strong> is in full compliance in all EU member states where the regulations havebeen adopted, and in 2008 the company launched its Producer Responsibility in Europewebsite to provide customers information about recycling <strong>Baxter</strong> products covered by theWEEE Directive in each of 18 countries.See more information, including about how <strong>Baxter</strong> helps customers and end-users recycleproducts, in the full report online.25 sustainability.baxter.com/product_responsibility