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News

Baxter Reports 2018 Fourth-Quarter and Full-Year Results

gbafNews28

Baxter International Inc. (NYSE:BAX), a leading global medical products company, today reported results for the fourth quarter and full year ended Dec. 31, 2018, and provided its financial guidance for 2019.

Baxter continued building momentum in 2018, delivering solid top-line and strong bottom-line performance for the year, said Jos (Joe) E. Almeida, chairman and chief executive officer. Our focus on increased innovation, combined with our diverse portfolio, global footprint and unwavering financial discipline, helped us maintain our trajectory in a dynamic marketplace.

Almeida added, Our ongoing business transformation will continue throughout 2019 as we prepare to launch new products, pursue high-value capital deployment opportunities and deliver on additional operational excellence initiatives. Our goal remains to drive top quartile performance for all stakeholders in line with our Mission to Save and Sustain Lives.

Fourth-Quarter Financial Results

Worldwide sales in the fourth quarter totaled approximately $2.8 billion, an increase of 2 percent on a reported basis and 5 percent on both a constant currency basis and operational basis compared to the prior-year period. Operational sales in the fourth quarter adjust for the impact of foreign exchange and generic competition for U.S. cyclophosphamide, as well as the companys acquisition of two surgical products from Mallinckrodt plc, which closed in March 2018.

Sales in the U.S. totaled $1.2 billion, increasing 4 percent on a reported basis and 2 percent on an operational basis. International sales of $1.7 billion increased 1 percent on a reported basis and 6 percent on both a constant currency and operational basis. Drivers of growth in the quarter included Baxters Renal Care, Pharmaceuticals, Advanced Surgery and Acute Therapies businesses. Increased demand for Baxters contract manufacturing services also contributed to performance in the quarter.

Please see the attached schedules accompanying this press release for additional details on sales performance in the quarter, including breakouts by Baxters three geographic segments and six global business units (GBUs).

Baxter reported income from continuing operations of $354 million, or $0.66 per diluted share, on a GAAP (Generally Accepted Accounting Principles) basis for the fourth quarter. These results include special items totaling $67 million after-tax, primarily related to business optimization and intangible amortization. On an adjusted basis, Baxters fourth quarter income from continuing operations totaled $421 million, or $0.78 per diluted share. Adjusted earnings per diluted share advanced 22 percent in the quarter, driven by solid operational performance, an ongoing benefit from the companys business transformation efforts and lower pension expenses.

Full-year Financial Results

Baxters 2018 worldwide sales totaled approximately $11.1 billion, an increase of 5 percent on a reported basis, 4 percent on a constant currency basis and 3 percent on an operational basis compared to 2017. Operational sales for 2018 adjust for the impact of foreign exchange, generic competition for U.S. cyclophosphamide, the companys March 2018 acquisition of two surgical products from Mallinckrodt plc, and the companys July 2017 acquisition of Claris Injectables.

Sales in the U.S. totaled $4.7 billion, increasing 5 percent on a reported basis and 3 percent on an operational basis. International sales of $6.4 billion increased 6 percent on a reported basis and 4 percent on both a constant currency and operational basis.

For the year, Baxters Pharmaceuticals, Advanced Surgery and Acute Therapies businesses delivered double-digit growth at constant currency rates; and Renal Care achieved mid-single-digit growth on a constant currency basis. This growth helped offset low-single-digit declines in the companys Medication Delivery and Clinical Nutrition businesses. The accompanying schedules include additional details on sales performance by geographic segment and GBU.

Baxter reported 2018 income from continuing operations of $1.6 billion, or $2.99 per diluted share, on a GAAP basis. These results include special items totaling $36 million after-tax, primarily due to business optimization and intangible amortization, partially offset by a benefit related to the companys U.S. foreign credit deferred tax assets. On an adjusted basis, Baxters 2018 income from continuing operations totaled $1.7 billion, or $3.05 per diluted share, an increase of 23 percent over the prior-year period.

In 2018, Baxter generated $2.1 billion in operating cash flow, driven by improved operational performance and the continuing impact of programs focused on improving the companys working capital. As a result, the company generated $1.4 billion in free cash flow (operating cash flow less capital expenditures of $681 million) for the year.

Baxters sustained improvement in cash generation gives us the flexibility to evaluate and pursue a growing range of organic and inorganic growth opportunities, said Jay Saccaro, chief financial officer. It also augments our ability to return value directly to our shareholders. In 2018, we increased our annual dividend rate by approximately 19 percent, paid out $376 million in dividends and repurchased over $2.4 billion in shares.

Business Highlights

In 2018 Baxter achieved notable milestones in pursuit of its Mission for patients as well as its emphasis on accelerating profitable growth. Among highlights of the past year, the company:

  • Announced a collaboration with Mayo Clinic to establish a renal care center of excellence that will serve patients across the continuum of care, from chronic kidney disease (CKD) management through transplant, to drive better outcomes. The center will be located at Mayo Clinics Jacksonville, Fla., campus
  • Launched Baxters Kaguya automated peritoneal dialysis (APD) system in Japan, incorporating several distinct features reflecting local needs and patient demographics, providing a valuable new in-home treatment option in a market that has historically emphasized in-center hemodialysis
  • Received CE Mark for the PrisMax system, Baxters next generation technology for continuous renal replacement and organ support therapies
  • Launched two innovative drug infusion pumps meeting the unique needs of markets around the world: the Spectrum IQ Infusion System with Dose IQ Safety Software in the U.S. and Canada, and the Evo IQ Infusion System in other global markets
  • Expanded our generic injectable pharmaceuticals portfolio with multiple new products, including dexmedetomidine hydrochloride in 0.9 percent sodium chloride using Baxters proprietary GALAXY container technology, representing the first and only presentation of this premixed formulation in a flexible, shelf-stable, ready-to-use container
  • Launched eight new products expanding the breadth and impact of Baxters Advanced Surgery portfolio, most recently including a new Disposable Curved Applicator for the Floseal Hemostatic Matrix product line providing surgeons with greater control during ENT surgeries
  • Acquired two products from Mallinckrodt plc, RECOTHROM Thrombin topical (Recombinant) and PREVELEAK Surgical Sealant, further broadening Baxters Advanced Surgery portfolio of hemostats and sealants
  • Introduced OLIMEL 7.6%, an olive-based, standardized parenteral nutrition solution with the highest protein and lowest glucose formulation available today
  • Announced the appointment of two new members to Baxters board of directors who bring leadership and expertise that will support the companys ongoing transformation:
    • Patricia (Patty) B. Morrison, former Cardinal Health executive vice president and chief information officer, whose vast information technologies expertise will help advance Baxters digital health strategies
    • Amy A. Wendell, former Covidien senior vice president of strategy and business development, whose experience will be an asset as Baxter continues to evaluate potential inorganic growth opportunities

Baxters progress continues into 2019, as reflected in additional highlights to open the year. Most recently the company:

  • Began patient treatments in the U.S. clinical trial for Baxters on-demand peritoneal dialysis (PD) solution generation system, an innovative technology designed to improve the patient experience and simplify therapy management by making PD solutions in small batches in the patients home
  • Reached a milestone 5 million home dialysis treatments managed globally using Baxters Sharesource remote patient management (telehealth) platform, which is embedded in the companys Amia, Kaguya and HomeChoice Claria APD systems

In addition, Baxter continues to be recognized for its commitment to corporate social responsibility and workplace excellence. The company was recently:

  • Named by Forbes and Just Capital to the 2019 Just 100 list of Americas Best Corporate Citizens
  • Named to Forbes list of The Best Employers for Diversity 2019

The company would also like to note that the United States Department of Justice, Washington Criminal Section of the Antitrust Division, has advised Baxter that it has officially closed its grand jury investigation of the saline market, and Baxter is no longer a subject or target of that investigation.

2019 Financial Outlook

For full-year 2019: Baxter expects sales growth of 0 to 1 percent on a reported basis, 2 to 3 percent on a constant currency basis and 3 to 4 percent on an operational basis. The company expects adjusted earnings from continuing operations, before special items, of $3.22 to $3.30 per diluted share.

For first-quarter 2019: The company expects sales to decline approximately 3 percent on a reported basis, to increase approximately 1 percent on a constant currency basis and to grow approximately 1 to 2 percent on an operational basis. The company expects adjusted earnings from continuing operations, before special items, of $0.66 to $0.68 per diluted share.

Full-year and first-quarter operational sales estimates for 2019 have been adjusted for the impact of foreign exchange and generic competition for U.S. cyclophosphamide.

Please see the schedules accompanying this press release for reconciliations of non-GAAP measures to the most closely related GAAP measures.

A webcast of Baxters fourth-quarter 2018 conference call for investors can be accessed live from a link on the companys website at www.baxter.com beginning at 7:30 a.m. CST on Jan. 31, 2019. Please see www.baxter.com for more information regarding this and future investor events and webcasts.

About Baxter

Every day, millions of patients and caregivers rely on Baxters leading portfolio of critical care, nutrition, renal, hospital and surgical products. For more than 85 years, weve been operating at the critical intersection where innovations that save and sustain lives meet the healthcare providers that make it happen. With products, technologies and therapies available in more than 100 countries, Baxters employees worldwide are now building upon the companys rich heritage of medical breakthroughs to advance the next generation of transformative healthcare innovations. To learn more, visit www.baxter.com and follow us on Twitter, LinkedIn and Facebook.

This release includes forward-looking statements concerning the companys financial results, business development activities, capital structure, cost savings initiatives, R&D pipeline, including results of clinical trials and planned product launches, and outlook for the first quarter and full year 2019. 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 of risks for new and existing products; product development risks; product quality or patient safety concerns; continuity, availability and pricing of acceptable raw materials and component supply; inability to create additional production capacity in a timely manner or the occurrence of other manufacturing or supply difficulties (including as a result of a natural disaster or otherwise); breaches or failures of the companys information technology systems or products, including by cyberattack, unauthorized access or theft; future actions of regulatory bodies and other governmental authorities, including FDA, the Department of Justice, the New York Attorney General and foreign regulatory agencies; failures with respect to compliance programs; future actions of third parties, including payers; U.S. healthcare reform and other global austerity measures; pricing, reimbursement, taxation and rebate policies of government agencies and private payers; the impact of competitive products and pricing, including generic competition, drug reimportation and disruptive technologies; global, trade and tax policies; accurate identification of and execution on business development and R&D opportunities and realization of anticipated benefits (including the acquisitions of Claris Injectables and two surgical products from Mallinckrodt plc); the ability to enforce owned or in-licensed patents or the patents of third parties preventing or restricting manufacture, sale or use of affected products or technology; the impact of global economic conditions (including potential trade wars); fluctuations in foreign exchange and interest rates; any change in law concerning the taxation of income (including current or future tax reform), including income earned outside the United States and potential taxes associated with the Base Erosion and Anti-Abuse Tax; actions taken by tax authorities in connection with ongoing tax audits; loss of key employees or inability to identify and recruit new employees; the outcome of pending or future litigation; the adequacy of the companys cash flows from operations to meet its ongoing cash obligations and fund its investment program; and other risks identified in Baxters most recent filing on Form 10-K and other Securities and Exchange Commission filings, all of which are available on Baxters website. Baxter does not undertake to update its forward-looking statements.

Baxter, Amia, Dose IQ, Evo IQ, Floseal, Galaxy, HomeChoice Claria, Kaguya, Olimel, Preveleak, Prismaflex, PrisMax, Recothrom, Sharesource, and Spectrum IQ are registered trademarks of Baxter International Inc.

             
BAXTER INTERNATIONAL INC.
Consolidated Statements of Income
Three Months Ended December 31, 2018 and 2017
(unaudited)
(in millions, except per share and percentage data)
   
 
Three Months Ended
December 31,
2018 2017 Change
 
NET SALES $2,841 $2,774 2%
 
COST OF SALES 1,649 1,610 2%
               
GROSS MARGIN   1,192   1,164   2%
% of Net Sales 42.0% 42.0% 0.0 pts
 
MARKETING AND ADMINISTRATIVE EXPENSES 629 692 (9%)
% of Net Sales 22.1% 24.9% (2.8 pts)
 
RESEARCH AND DEVELOPMENT EXPENSES 175 181 (3%)
% of Net Sales 6.2% 6.5% (0.3 pts)
 
OTHER OPERATING INCOME (10) NM
               
OPERATING INCOME   398   291   37%
% of Net Sales 14.0% 10.5% 3.5 pts
 
NET INTEREST EXPENSE 11 14 (21%)
 
OTHER INCOME, NET (58) (16) NM
               
INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES   445   293   52%
 
INCOME TAX EXPENSE   91   354   (74%)
% of Income from Continuing Operations before Income Taxes 20.4% 120.8% (100.4 pts)
 
INCOME (LOSS) FROM CONTINUING OPERATIONS 354 (61) NM
 
LOSS FROM DISCONTINUED OPERATIONS, NET OF TAX   (6)   (10)   NM
 
NET INCOME (LOSS)   $348   ($71)   NM
 
INCOME (LOSS) FROM CONTINUING OPERATIONS PER COMMON SHARE
Basic   $0.67   ($0.11)   NM
Diluted   $0.66   ($0.11)   NM
 
LOSS FROM DISCONTINUED OPERATIONS PER COMMON SHARE
Basic   ($0.01)   ($0.02)   NM
Diluted   ($0.01)   ($0.02)   NM
 
NET INCOME (LOSS) PER COMMON SHARE
Basic   $0.66   ($0.13)   NM
Diluted   $0.65   ($0.13)   NM
 
WEIGHTED-AVERAGE NUMBER OF COMMON SHARES OUTSTANDING
Basic 528 543
Diluted   538   556    
 
ADJUSTED OPERATING INCOME (excluding special items) $496 A $428 A 16%
ADJUSTED PRE-TAX INCOME FROM CONTINUING OPERATIONS (excluding special items) $519 A $430 A 21%
ADJUSTED INCOME FROM CONTINUING OPERATIONS (excluding special items) $421 A $354 A 19%
ADJUSTED DILUTED EPS FROM CONTINUING OPERATIONS (excluding special items) $0.78 A $0.64 A 22%
A   Refer to page 9 for a description of the adjustments and a reconciliation to GAAP measures.
NM – Not Meaningful
 
 
BAXTER INTERNATIONAL INC.
Note to Consolidated Statements of Income
Three Months Ended December 31, 2018 and 2017
Description of Adjustments and Reconciliation of GAAP to Non-GAAP Measures
(unaudited)
(in millions, except per share and percentage data)
       
The company’s GAAP results for the three months ended December 31, 2018 and 2017 included special items which impacted the GAAP measures as follows:
 

Three Months Ended

December 31,

2018 2017 Change
Gross Margin $1,192 $1,164 2%
Intangible asset amortization expense 1 42 42
Business optimization items 2 19 11
Hurricane Maria (benefits) costs³ (9) 11
Acquisition and integration expenses´ 11 4
Product-related items µ (3)
European medical devices regulation ¶ 6  
Adjusted Gross Margin $1,258   $1,232 2%
% of Net Sales 44.3% 44.4% (0.1 pts)
 
Marketing and Administrative Expenses $629 $692 (9%)
Business optimization items2 (23) (42)
Separation-related costs 7 (2)
Acquisition and integration expenses ´ (9) (4)
Litigation and contractual disputes¸   (21)
Adjusted Marketing and Administrative Expenses $597   $623 (4%)
% of Net Sales 21.0% 22.5% (1.5 pts)
 
Research and Development Expenses $175 $181 (3%)
Business optimization items 2 (3)
Acquisition and integration expenses ´ (7)  
Adjusted Research and Development Expenses $165   $181 (9%)
% of Net Sales 5.8% 6.5% (0.7 pts)
 
Other Operating Income $(10) $- NM
Hurricane Maria benefits ³ 10  
Adjusted Other Operating Income

$-

  $-

NM

% of Net Sales 0.0% 0.0% 0 pts
 
Operating Income $398 $291 37%
Impact of special items 98   137
Adjusted Operating Income $496   $428 16%
% of Net Sales 17.5% 15.4% 2.1 pts
 
Other Income, Net $(58) $(16) NM
Acquisition and integration benefits ´ 24  
Adjusted Other Income, Net $(34)   $(16) NM
 
Pre-Tax Income from Continuing Operations $445 $293 52%
Impact of special items 74   137
Adjusted Pre-Tax Income from Continuing Operations $519   $430 21%
 
Income Tax Expense $91 $354 (74%)
Impact of special items ¹ 7   (278)
Adjusted Income Tax Expense $98   $76 29%
% of Adjusted Pre-Tax Income from Continuing Operations 18.9% 17.7% 1.2 pts
 
Income (loss) from Continuing Operations $354 $(61) NM
Impact of special items 67   415
Adjusted Income from Continuing Operations $421   $354 19%
 
Diluted EPS from Continuing Operations $0.66 ($0.11) NM
Impact of special items 0.12   0.75
Adjusted Diluted EPS from Continuing Operations $0.78   $0.64 22%
 
WEIGHTED-AVERAGE NUMBER OF COMMON SHARES OUTSTANDING
Diluted   538   556    
1   The company’s results in 2018 and 2017 included intangible asset amortization expense of $42 million ($33 million, or $0.06 per diluted share, on an after-tax basis) and $42 million ($27 million, or $0.05 per diluted share, on an after-tax basis), respectively.
 
2

The company’s results in 2018 included charges of $45 million ($35 million, or $0.07 per diluted share, on an after-tax basis) related to business optimization initiatives. This included a charge of $21 million related to restructuring activities, $20 million of costs to implement business optimization programs which primarily included external consulting and project employee costs, and $4 million of accelerated depreciation associated with facilities to be closed. The $21 million of restructuring charges included $14 million of employee termination costs, $4 million of contract termination and other costs and $3 million of asset impairment costs.

 
The company’s results in 2017 included charges of $53 million ($35 million, or $0.06 per diluted share, on an after-tax basis) related to business optimization initiatives. This included charges of $20 million related to restructuring activities, $31 million of costs to implement business optimization programs which primarily included external consulting and project employee costs and $2 million of accelerated depreciation associated with facilities to be closed. The $20 million of restructuring charges were comprised of $19 million of employee termination costs and $1 million of asset impairment charges primarily related to facility closures.
 
3 The company’s results in 2018 included a benefit of $19 million ($13 million, or $0.03 per diluted share, on an after-tax basis) related to insurance recoveries as a result of losses incurred due to Hurricane Maria.
 
The company’s results in 2017 included charges of $11 million ($11 million, or $0.02 per diluted share, on an after-tax basis) related to the impact of Hurricane Maria on the company’s operations in Puerto Rico. The costs primarily included idle facility costs.
 
4 The company’s results in 2018 included acquisition and integration costs related to the company’s acquisitions of Claris Injectables Limited and the RECOTHROM and PREVELEAK products of $20 million ($16 million, or $0.03 per diluted share, on an after-tax basis), upfront payments related to R&D collaborations and license agreements of $7 million ($6 million, or $0.01 per diluted share, on an after-tax basis) and a gain of $24 million ($24 million, or $0.04 per diluted share, on an after-tax basis) from remeasuring its previously held investment to fair value upon acquisition of a controlling interest in its joint venture in Saudi Arabia.
 
The company’s results in 2017 included acquisition and integration costs of $8 million ($6 million, or $0.01 per diluted share, on an after-tax basis) related to the company’s acquisition of Claris Injectables Limited.
 
5 The company’s results in 2018 included a net benefit of $3 million ($2 million, or $0.00 per diluted share, on an after-tax basis) related to an adjustment to its accrual for SIGMA SPECTRUM infusion pump inspection and remediation activities.
 
6 The company’s results in 2018 included costs of $6 million ($4 million, or $0.00 per diluted share, on an after-tax basis) specific to updating its quality systems and product labeling to comply with the new medical device reporting regulations and other requirements of the European Union’s regulations for medical devices that will become effective in 2020.
 
7 The company’s results in 2017 included costs incurred related to the Baxalta separation totaling $2 million ($1 million, or $0.00 per diluted share, on an after-tax basis).
 
8 The companys results in 2017 included charges of $21 million ($13 million, or $0.03 per diluted share, on an after-tax basis) related to litigation and contractual disputes for businesses or arrangements in which the company is no longer engaged or a party thereto.
 
9 Reflected in this item for 2018 is the tax impact of the special items identified in this table as well as net tax expense of $12 million, or $0.02 per diluted share, primarily related to an update to the estimated impact of U.S. federal tax reform previously made by the company. The tax effect of each adjustment is based on the jurisdiction in which the adjustment is incurred and the tax laws in effect for each such jurisdiction.
 
Reflected in this item for 2017 is the tax impact of the special items identified in this table as well as a net tax expense of $322 million, or $0.58 per diluted share, related to the estimated impact of U.S. tax reform on the company’s tax-related assets and liabilities. The tax effect of each adjustment is based on the jurisdiction in which the adjustment is incurred and the tax laws in effect for each such jurisdiction.
 
For more information on the company’s use of non-GAAP financial measures in this presentation, please see the company’s Current Report on Form 8-K filed with the Securities and Exchange Commission on the date of this presentation.
 
NM – Not Meaningful
 
 
BAXTER INTERNATIONAL INC.
Consolidated Statements of Income
Twelve Months Ended December 31, 2018 and 2017
(unaudited)
(in millions, except per share and percentage data)
 
 
Twelve Months Ended
December 31,
2018 2017 Change
 
NET SALES $11,127 $10,561 5%
 
COST OF SALES 6,346 6,091 4%
           
GROSS MARGIN 4,781   4,470   7%
% of Net Sales 43.0% 42.3% 0.7 pts
 
MARKETING AND ADMINISTRATIVE EXPENSES 2,617 2,566 2%
% of Net Sales 23.5% 24.3% (0.8 pts)
 
RESEARCH AND DEVELOPMENT EXPENSES 655 613 7%
% of Net Sales 5.9% 5.8% 0.1 pts
 
OTHER OPERATING INCOME (90) NM
           
OPERATING INCOME 1,599   1,291   24%
% of Net Sales 14.4% 12.2% 2.2 pts
 
NET INTEREST EXPENSE 45 55 (18%)
 
OTHER (INCOME) EXPENSE, NET (139) 19 NM
           
INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES 1,693   1,217   39%
 
INCOME TAX EXPENSE 63   493   (87%)
% of Income from Continuing Operations before Income Taxes 3.7% 40.5% (36.8 pts)
 
INCOME FROM CONTINUING OPERATIONS 1,630 724 125%
 
LOSS FROM DISCONTINUED OPERATIONS, NET OF TAX (6)   (7)   (14%)
 
NET INCOME $1,624   $717   126%
 
INCOME FROM CONTINUING OPERATIONS PER COMMON SHARE
Basic $3.05   $1.33   129%
Diluted $2.99   $1.30   130%
 
LOSS FROM DISCONTINUED OPERATIONS PER COMMON SHARE
Basic ($0.01)   ($0.01)   NM
Diluted ($0.02)   ($0.01)   NM
 
NET INCOME PER COMMON SHARE
Basic $3.04   $1.32   130%
Diluted $2.97   $1.29   130%
 
WEIGHTED-AVERAGE NUMBER OF COMMON SHARES OUTSTANDING
Basic 534 543
Diluted 546   555    
 
ADJUSTED OPERATING INCOME (excluding special items) $1,936 A $1,719 A 13%
ADJUSTED PRE-TAX INCOME FROM CONTINUING OPERATIONS (excluding special items) $2,006 A $1,678 A 20%
ADJUSTED INCOME FROM CONTINUING OPERATIONS (excluding special items) $1,666 A $1,376 A 21%
ADJUSTED DILUTED EPS FROM CONTINUING OPERATIONS (excluding special items) $3.05 A $2.48 A 23%
 
A   Refer to page 11 for a description of the adjustments and a reconciliation to GAAP measures.
NM – Not Meaningful
 
 
BAXTER INTERNATIONAL INC.
Note to Consolidated Statements of Income
Twelve Months Ended December 31, 2018 and 2017
Description of Adjustments and Reconciliation of GAAP to Non-GAAP Measures
(unaudited)
(in millions, except per share and percentage data)
       
The company’s GAAP results for the twelve months ended December 31, 2018 and 2017 included special items which impacted the GAAP measures as follows:
 

Twelve Months Ended

December 31,

2018 2017 Change
Gross Margin $4,781 $4,470 7%
Intangible asset amortization expense 1 169 154
Business optimization items 2 49 53
Acquisition and integration expenses 3 27 8
Litigation and contractual disputes4 8
Product-related items5 (6) 17
Separation-related costs 6 1
Hurricane Maria (benefits) costs · (32) 32
European medical devices regulation ¸ 6  
Adjusted Gross Margin $5,002   $4,735 6%
% of Net Sales 45.0% 44.8% 0.2 pts
 
Marketing and Administrative Expenses $2,617 $2,566 2%
Business optimization items2 (145) (116)
Separation-related costs6 (18)
Acquisition and integration expenses 3 (23) (20)
Historical rebate and discount adjustments ‚‰ 12
Litigation and contractual disputes 4 (2)   (21)
Adjusted Marketing and Administrative Expenses $2,447   $2,403 2%
% of Net Sales 22.0% 22.8% (0.8 pts)
 
Research and Development Expenses $655 $613 7%
Business optimization items 2 (26)
Acquisition and integration expenses 3 (7)
European medical devices regulation ¸ (3)  
Adjusted Research and Development Expenses $619   $613 1%
% of Net Sales 5.6% 5.8% (0.2 pts)
 
Other Operating Income $(90) $- NM
Claris settlement ¹° 80
Hurricane Maria benefits · 10  
Adjusted Other Operating Income $-   $-

NM

% of Net Sales 0.0% 0.0% 0.0 pts
 
Operating Income $1,599 $1,291 24%
Impact of special items 337   428
Adjusted Operating Income $1,936   $1,719 13%
% of Net Sales 17.4% 16.3% 1.1 pts
 
Other (Income) Expense, Net $(139) $19 NM
Venezuelan deconsolidation ¹¹ (33)
Acquisition and integration benefits 3 24  
Adjusted Other Income, Net $(115)   $(14) NM
 
Pre-Tax Income from Continuing Operations $1,693 $1,217 39%
Impact of special items 313   461
Adjusted Pre-Tax Income from Continuing Operations $2,006   $1,678 20%
 
Income Tax Expense $63 $493 (87%)
Impact of special items 12 277   (191)
Adjusted Income Tax Expense $340   $302 13%
% of Adjusted Pre-Tax Income from Continuing Operations 16.9% 18.0% (1.1 pts)
 
Income from Continuing Operations $1,630 $724 125%
Impact of special items 36   652
Adjusted Income from Continuing Operations $1,666   $1,376 21%
 
Diluted EPS from Continuing Operations $2.99 $1.30 130%
Impact of special items 0.06   1.18
Adjusted Diluted EPS from Continuing Operations $3.05   $2.48 23%
 
WEIGHTED-AVERAGE NUMBER OF COMMON SHARES OUTSTANDING
Diluted   546   555    
 
1   The company’s results in 2018 and 2017 included intangible asset amortization expense of $169 million ($133 million, or $0.25 per diluted share, on an after-tax basis) and $154 million ($108 million, or $0.19 per diluted share, on an after-tax basis), respectively.
 
2 The company’s results in 2018 included a charge of $220 million ($174 million, or $0.32 per diluted share, on an after-tax basis) related to business optimization initiatives. This included a charge of $117 million related to restructuring activities, $94 million of costs to implement business optimization programs which primarily included external consulting and project employee costs, and $9 million of accelerated depreciation associated with facilities to be closed. The $117 million of restructuring charges included $100 million of employee termination costs, $10 million of contract termination and other costs and $7 million of asset impairment charges primarily related to facility closures.
 
The company’s results in 2017 included a charge of $169 million ($119 million, or $0.21 per diluted share, on an after-tax basis) related to business optimization initiatives. This included a charge of $70 million related to restructuring activities, $89 million of costs to implement business optimization programs which primarily included external consulting and project employee costs, and $10 million of accelerated depreciation associated with facilities to be closed. The $70 million of restructuring charges included $59 million of employee termination costs, $5 million of contract termination costs, and $6 million of asset impairment charges primarily related to facility closures.
 
3 The company’s results in 2018 included acquisition and integration costs related to the company’s acquisitions of Claris Injectables Limited and the RECOTHROM and PREVELEAK products of $50 million ($40 million, or $0.07 per diluted share, on an after-tax basis), upfront payments related to R&D collaborations and license agreements of $7 million ($6 million, or $0.01 per diluted share, on an after-tax basis) and a gain of $24 million ($24 million, or $0.04 per diluted share, on an after-tax basis) from remeasuring its previously held investment to fair value upon acquisition of a controlling interest in its joint venture in Saudi Arabia.
 
The company’s results in 2017 included acquisition and integration costs of $28 million ($20 million, or $0.04 per diluted share, on an after-tax basis) related to the company’s acquisition of Claris Injectables Limited.
 
4 The company’s results in 2018 included a charge of $10 million ($9 million, or $0.01 per diluted share, on an after-tax basis) related to certain product litigation.
 
The companys results in 2017 included charges of $21 million ($13 million, or $0.03 per diluted share, on an after-tax basis) related to litigation and contractual disputes for businesses or arrangements in which the company is no longer engaged or a party thereto.
 
5 The company’s results in 2018 included a net benefit of $6 million ($4 million, or $0.01 per diluted share, on an after-tax basis) related to an adjustment to its accrual for SIGMA SPECTRUM infusion pump inspection and remediation activities.
 
The company’s results in 2017 included a net charge of $17 million ($11 million, or $0.02 per diluted share, on an after-tax basis) related to SIGMA SPECTRUM infusion pump inspection and remediation activities, partially offset by a benefit related to an adjustment to historical product reserves.
 
6 The company’s results in 2017 included costs incurred related to the Baxalta separation totaling $19 million ($13 million, or $0.02 per diluted share, on an after-tax basis).
 
7 The company’s results in 2018 included a benefit of $42 million ($31 million, or $0.06 per diluted share, on an after-tax basis) related to insurance recoveries as a result of losses incurred due to Hurricane Maria.
 
The company’s results in 2017 included charges of $32 million ($31 million, or $0.06 per diluted share, on an after-tax basis) related to the impact of Hurricane Maria on the company’s operations in Puerto Rico. The costs primarily included inventory and fixed asset impairments as well as idle facility costs.
 
8 The company’s results in 2018 included costs of $9 million ($7 million, or $0.01 per diluted share, on an after-tax basis) specific to updating its quality systems and product labeling to comply with the new medical device reporting regulations and other requirements of the European Union’s regulations for medical devices that will become effective in 2020.
 
9 The company’s results in 2017 included a benefit of $12 million ($9 million, or $0.02 per diluted share, on an after-tax basis) related to an adjustment to the company’s historical rebates and discount reserve.
 
10 The company’s results in 2018 included a benefit of $80 million ($78 million, or $0.14 per diluted share, on an after-tax basis) for the settlement of certain claims related to the acquired operations of Claris Injectables Limited.
 
11 The company’s results in 2017 included a charge of $33 million ($24 million, or $0.04 per diluted share, on an after-tax basis) related to the deconsolidation of its Venezuelan operations.
 
12 Reflected in this item in 2018 is the tax impact of the special items identified in this table as well as a net tax benefit of $196 million, or $0.36 per diluted share, primarily related to an update to the estimated impact of U.S. federal tax reform previously made by the company. The tax effect of each adjustment is based on the jurisdiction in which the adjustment is incurred and the tax laws in effect for each such jurisdiction.
 
Reflected in this item in 2017 is the tax impact of the special items identified in this table as well as a net tax expense of $322 million, or $0.58 per diluted share, related to the estimated impact of tax reform on the companys tax related assets and liabilities. The tax effect of each adjustment is based on the jurisdiction in which the adjustment is incurred and the tax laws in effect for each such jurisdiction.
 
For more information on the company’s use of non-GAAP financial measures in this presentation, please see the company’s Current Report on Form 8-K filed with the Securities and Exchange Commission on the date of this presentation.
 
NM – Not Meaningful
 
BAXTER INTERNATIONAL INC.
Sales by Operating Segment
Periods Ending December 31, 2018 and 2017
(unaudited)
($ in millions)
                                                                 
      Q4       Q4       % Growth @       % Growth @       YTD       YTD       % Growth @       % Growth @
        2018       2017       Actual Rates       Constant Rates       2018       2017       Actual Rates       Constant Rates
Americas $1,495 $1,456 3% 4% $5,959 $5,720 4% 5%
EMEA 772 753 3% 6% 2,961 2,732 8% 4%
APAC     574       565       2%       6%       2,207       2,109       5%       4%
Total Baxter     $2,841       $2,774       2%       5%       $11,127       $10,561       5%       4%
 
BAXTER INTERNATIONAL INC.
Sales by GBU
Periods Ending December 31, 2018 and 2017
(unaudited)
($ in millions)
                                                                 
      Q4       Q4       % Growth @       % Growth @       YTD       YTD       % Growth @       % Growth @
        2018       2017       Actual Rates       Constant Rates       2018       2017       Actual Rates       Constant Rates
Renal Care¹ $953 $941 1% 5% $3,662 $3,480 5% 4%
Medication Delivery² 660 672 (2%)

(0%)

2,669 2,698 (1%) (2%)
Pharmaceuticals³ 540 508 6% 9% 2,092 1,883 11% 10%
Clinical Nutrition´ 215 231 (7%) (5%) 877 882 (1%) (3%)
Advanced Surgeryµ 214 186 15% 17% 800 707 13% 12%
Acute Therapies¶ 137 126 9% 12% 517 456 13% 11%
Other·     122       110       11%       14%       510       455       12%       10%
Total Baxter     $2,841       $2,774       2%       5%       $11,127       $10,561       5%       4%
 
1   Includes sales of the companys peritoneal dialysis (PD) and hemodialysis (HD) and additional dialysis therapies and services.
2 Includes sales of the companys IV therapies, infusion pumps, administration sets and drug reconstitution devices.
3 Includes sales of the companys premixed and oncology drug platforms, inhaled anesthesia and critical care products and pharmacy compounding services.
4 Includes sales of the companys parenteral nutrition (PN) therapies.
5 Includes sales of the companys biological products and medical devices used in surgical procedures for hemostasis, tissue sealing and adhesion prevention.
6 Includes sales of the companys continuous renal replacement therapies (CRRT) and other organ support therapies focused in the ICU.
7 Includes sales primarily from the companys pharmaceutical partnering business.
 
BAXTER INTERNATIONAL INC.
GBU Sales by U.S. and International
Periods Ending December 31, 2018 and 2017
(unaudited)
($ in millions)
                                                                           
          Q4 2018       Q4 2017       % Growth
          U.S.       International       Total       U.S.       International       Total       U.S.       International       Total
Renal Care       $207       $746       $953       $193       $748       $941       7%       (0%)       1%
Medication Delivery 410 250 660 408 264 672 0% (5%) (2%)
Pharmaceuticals 251 289 540 240 268 508 5% 8% 6%
Clinical Nutrition 78 137 215 84 147 231 (7%) (7%) (7%)
Advanced Surgery 127 87 214 106 80 186 20% 9% 15%
Acute Therapies 45 92 137 39 87 126 15% 6% 9%
Other       54       68       122       58       52       110       (7%)       31%       11%
Total Baxter       $1,172       $1,669       $2,841       $1,128       $1,646       $2,774       4%       1%       2%
 
BAXTER INTERNATIONAL INC.
GBU Sales by U.S. and International
Periods Ending December 31, 2018 and 2017
(unaudited)
($ in millions)
                                                                           
          YTD 2018       YTD 2017       % Growth
          U.S.       International       Total       U.S.       International       Total       U.S.       International       Total
Renal Care       $816       $2,846       $3,662       $754       $2,726       $3,480       8%       4%       5%
Medication Delivery 1,690 979 2,669 1,698 1,000 2,698 (0%) (2%) (1%)
Pharmaceuticals 996 1,096 2,092 892 991 1,883 12% 11% 11%
Clinical Nutrition 321 556 877 359 523 882 (11%) 6% (1%)
Advanced Surgery 466 334 800 403 304 707 16% 10% 13%
Acute Therapies 174 343 517 147 309 456 18% 11% 13%
Other       260       250       510       257       198       455       1%       26%       12%
Total Baxter       $4,723       $6,404       $11,127       $4,510       $6,051       $10,561       5%       6%       5%
 
BAXTER INTERNATIONAL INC.
Free Cash Flow Reconciliation
(unaudited)
($ in millions)
                   
        Twelve Months Ended
December 31,
        2018       2017
Cash flows from operations – continuing operations $2,096       $1,853
Capital expenditures (681) (634)
Free cash flow – continuing operations       $1,415       $1,219
 
BAXTER INTERNATIONAL INC.
Reconciliation of Non-GAAP Financial Measure
Change in Net Sales As Reported to Operational Sales
From The Three Months Ended December 31, 2017 to The Three Months Ended December 31, 2018
(unaudited)
                               
 
                                 
          Q4 2018 QTD*
Net sales US Operational
          As Reported       Cyclophosphamide       Acquisitions       FX       Sales
Renal Care 1% 0% 0% 4% 5%
Medication Delivery (2%) 0% 0% 2%

(0%)

Pharmaceuticals 6% 2% 0% 3% 11%
Clinical Nutrition (7%) 0% 0% 2% (5%)
Advanced Surgery 15% 0% (11%) 2% 5%
Acute Therapies 9% 0% 0% 3% 12%
Other 11% 0% 0% 3% 14%
 
Total Baxter         2%       0%       (1%)       3%       5%
                                           
U.S. 4% 1% (2%) 0% 2%
International         1%       0%       0%       5%       6%
 
*Totals may not foot due to rounding
 
BAXTER INTERNATIONAL INC.
Reconciliation of Non-GAAP Financial Measure
Change in Net Sales As Reported to Operational Sales
From The Twelve Months Ended December 31, 2017 to The Twelve Months Ended December 31, 2018
(unaudited)
                             
 
                                 
        Q4 2018 YTD*
Net sales US Operational
        As Reported       Cyclophosphamide       Acquisitions       FX       Sales
Renal Care 5% 0% 0% (1%) 4%
Medication Delivery (1%) 0% 0% (1%) (2%)
Pharmaceuticals 11% 2% (4%) (1%) 8%
Clinical Nutrition (1%) 0% 0% (2%) (3%)
Advanced Surgery 13% 0% (7%) (1%) 5%
Acute Therapies 13% 0% 0% (2%) 11%
Other 12% 0% 0% (2%) 10%
 
Total Baxter       5%       0%       (1%)       (1%)       3%
                                         
U.S. 5% 1% (2%) 0% 3%
International       6%       0%       0%       (2%)       4%
 
*Totals may not foot due to rounding
 
BAXTER INTERNATIONAL INC.
Reconciliation of Non-GAAP Financial Measures
Projected 2019 Adjusted Earnings Per Share and Projected GAAP Earnings Per Share, and
Projected 2019 Adjusted Sales Growth and Projected GAAP Sales Growth
(unaudited)
           
 
                 
2019 Earnings Per Share Guidance       Q1 2019       FY 2019
Earnings per Diluted Share “ Adjusted       $0.66 – $0.68       $3.22 – $3.30
Estimated intangible asset amortization $0.07 $0.26
Estimated business optimization charges $0.03 – $0.04 $0.12 – $0.15
Estimated Acquisition and integration expenses $0.01 $0.04
Estimated European medical devices regulation       $0.02       $0.08
Earnings per Diluted Share – GAAP       $0.52 – $0.55       $2.69 – $2.80
 
 
                 
2019 Sales Growth Guidance       Q1 2019       FY 2019
Sales Growth “ Operational       1% – 2%       3% – 4%
U.S. cyclophosphamide

(1%)

(1%) – 0%

Foreign exchange       (3%) – (4%)      

(2%) – (3%)

Sales Growth – GAAP       (3%)       0% – 1%

Media Contact
Steve Brett, (224) 948-5353
[email protected]

Investor
Contact
Clare Trachtman, (224) 948-3085

News

CNOOC Limited Announces Commencement of Production at Liuhua 16-2 Oilfield / 20-2 Oilfield Joint Development Project

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HONG KONG, Sept. 20, 2020 /PRNewswire/ — CNOOC Limited (the "Company", SEHK: 00883, NYSE: CEO, TSX: CNU) announced today that Liuhua 16-2 oilfield/ 20-2 oilfield joint development project has commenced production.

Liuhua 16-2 oilfield / 20-2 oilfield joint development project is located in Eastern South China Sea. The average water depth of the joint development project is approximately 410 meters.  One 150,000 DWT FPSO and three underwater production systems are newly built. A total of 26 development wells are planned to be put into production and development. The project is expected to reach its peak production of approximately 72,800 barrels of crude oil per day in 2022.

CNOOC Limited holds 100% interest of Liuhua 16-2 oilfield/ 20-2 oilfield joint development project.

– End –

Notes to Editors:

More information about the Company is available at http://www.cnoocltd.com.

*** *** *** ***

This press release includes "forward-looking statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995, including statements regarding expected future events, business prospectus or financial results. The words "expect", "anticipate", "continue", "estimate", "objective", "ongoing", "may", "will", "project", "should", "believe", "plans", "intends" and similar expressions are intended to identify such forward-looking statements. These statements are based on assumptions and analyses made by the Company in light of its experience and its perception of historical trends, current conditions and expected future developments, as well as other factors the Company believes are appropriate under the circumstances. However, whether actual results and developments will meet the expectations and predictions of the Company depends on a number of risks and uncertainties which could cause the actual results, performance and financial condition to differ materially from the Company’s expectations, including but not limited to those associated with fluctuations in crude oil and natural gas prices, macro-political and economic factors, changes in the tax and fiscal regimes of the host countries in which we operate, the highly competitive nature of the oil and natural gas industry, the exploration and development activities, mergers, acquisitions and divestments activities, environmental responsibility and compliance requirements, foreign operations and cyber system attacks.  For a description of these and other risks and uncertainties, please see the documents the Company files from time to time with the United States Securities and Exchange Commission, including the Annual Report on Form 20-F filed in April of the latest fiscal year.

Consequently, all of the forward-looking statements made in this press release are qualified by these cautionary statements. The Company cannot assure that the results or developments anticipated will be realised or, even if substantially realised, that they will have the expected effect on the Company, its business or operations.

*** *** *** ***

For further enquiries, please contact:

Ms. Jing Liu
Manager, Media & Public Relations
CNOOC Limited
Tel: +86-10-8452-3404
Fax: +86-10-8452-1441
E-mail: [email protected]

Ms. Ada Leung 
Hill+Knowlton Strategies Asia
Tel: +852-2894-6225
Fax: +852-2576-1990
E-mail: [email protected]

Photo – https://photos.prnasia.com/prnh/20200911/2914374-1LOGO?lang=0

 

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SHAREHOLDER ALERT: Pomerantz Law Firm Reminds Shareholders with Losses on their Investment in Odonate Therapeutics, Inc. of Class Action Lawsuit and Upcoming Deadline – ODT

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NEW YORK, Sept. 19, 2020 — Pomerantz LLP announces that a class action lawsuit has been filed against Odonate Therapeutics, Inc.  (“Odonate” or the “Company”) (NASDAQ: ODT) and certain of its officers.   The class action, filed in United States District Court for the Southern District of California, and docketed under 20-cv-01828, is on behalf of a class consisting of all persons other than Defendants who purchased or otherwise, acquired Odonate securities between December 7, 2017, and August 21, 2020, both dates inclusive (the “Class Period”), seeking to recover damages caused by Defendants’ violations of the federal securities laws and to pursue remedies under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 (the “Exchange Act”) and Rule 10b-5 promulgated thereunder, against the Company and certain of its top officials.

If you are a shareholder who purchased Odonate securities during the class period, you have until November 16, 2020, to ask the Court to appoint you as Lead Plaintiff for the class.  A copy of the Complaint can be obtained at www.pomerantzlaw.com.   To discuss this action, contact Robert S. Willoughby at [email protected] or 888.476.6529 (or 888.4-POMLAW), toll-free, Ext. 7980. Those who inquire by e-mail are encouraged to include their mailing address, telephone number, and the number of shares purchased. 

[Click here for information about joining the class action]

Odonate was founded in 2013 and is based in San Diego, California.  Odonate is a pharmaceutical company that develops therapeutics for the treatment of cancer.  The Company is focused on developing tesetaxel, an orally administered chemotherapy agent. 

Tesetaxel is in Phase 3 clinical study for patients with locally advanced or metastatic breast cancer (“MBC”), called the CONTESSA trial, which is evaluating tesetaxel in combination with capecitabine in patients with MBC.

The complaint alleges that throughout the Class Period, Defendants made materially false and misleading statements regarding the Company’s business, operational, and compliance policies.  Specifically, Defendants made false and/or misleading statements and/or failed to disclose that: (i) tesetaxel was not as safe or well-tolerated as the Company had led investors to believe; (ii) consequently, tesetaxel’s commercial viability as a cancer treatment was overstated; and (iii) as a result, the Company’s public statements were materially false and misleading at all relevant times.

On August 24, 2020, during pre-market hours, Odonate issued a press release announcing top-line results from the CONTESSA trial.  Although the study met its primary endpoint, tesetaxel plus capecitabine was associated with Grade 3 or higher neutropenia (low levels of white blood cells), which occurred in 71.2% of patients with the combination treatment versus 8.3% for capecitabine alone.  Various other Grade 3 or higher treatment-emergent adverse events (“AEs”) were also associated with tesetaxel plus capecitabine versus capecitabine alone.  Further, discontinuation rates were 4.2% from neutropenia and 3.6% from neuropathy, and the overall discontinuation rate was 23.1% in the treatment group compared to 11.9% in the capecitabine alone group.

On this news, Odonate’s stock price fell $15.21 per share, or 45.35%, to close at $18.33 per share on August 24, 2020.

The Pomerantz Firm, with offices in New York, Chicago, Los Angeles, and Paris is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, the Pomerantz Firm pioneered the field of securities class actions. Today, more than 80 years later, the Pomerantz Firm continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomerantzlaw.com.

CONTACT: Robert S. Willoughby Pomerantz LLP [email protected]

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SHAREHOLDER ALERT: Pomerantz Law Firm Reminds Shareholders with Losses on their Investment in Fastly, Inc. of Class Action Lawsuit and Upcoming Deadline – FSLY

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NEW YORK, Sept. 19, 2020 — Pomerantz LLP announces that a class action lawsuit has been filed against Fastly, Inc.  (“Fastly” or the “Company”) (NYSE: FSLY) and certain of its officers.   The class action, filed in United States District Court for the Northern District of California, and docketed under 20-cv-06454, is on behalf of a class consisting of all persons other than Defendants who purchased or otherwise, acquired Fastly securities between May 6, 2020, and August 5, 2020, inclusive (the “Class Period”) and were damaged thereby, seeking to pursue remedies under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 (the “Exchange Act”), and SEC Rule 10b-5 promulgated thereunder (the “Class”).

If you are a shareholder who purchased Fastly securities during the class period, you have until October 26, 2020, to ask the Court to appoint you as Lead Plaintiff for the class.  A copy of the Complaint can be obtained at www.pomerantzlaw.com.   To discuss this action, contact Robert S. Willoughby at [email protected] or 888.476.6529 (or 888.4-POMLAW), toll-free, Ext. 7980. Those who inquire by e-mail are encouraged to include their mailing address, telephone number, and the number of shares purchased. 

[Click here for information about joining the class action]

Fastly is the provider of an edge cloud platform. Fastly’s edge cloud platform purportedly enables “customers to create great digital experiences quickly, securely, and reliably by processing, serving, and securing [its] customers’ applications as close to their end-users as possible.”

The complaint alleges that during the Class Period, Defendants knowingly and/or recklessly made false and/or misleading statements about the Company’s business, operations, and prospects. Specifically, Defendants made false and/or misleading statements and/or failed to disclose: (i) that Fastly’s largest customer was ByteDance, operator of TikTok, which was known to have serious security risks and was under intense scrutiny by U.S. officials; (ii) that there was a material risk that Fastly’s business would be adversely impacted should any adverse actions be taken against ByteDance or TikTok by the U.S. government; and (iii) that, as a result, Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis.

On August 5, 2020, after market close, Fastly held its second quarter (“Q2”) 2020 earnings conference call. During the call, Defendants disclosed that ByteDance, the Chinese company that operates the wildly popular mobile app TikTok, was Fastly’s largest customer in Q2 2020 and that TikTok represented about 12% of Fastly’s revenue for the six months ended June 30, 2020.

This news shocked the market, as TikTok had been under heavy scrutiny by U.S. officials and others since at least late 2019 due to fears that the data it collects from its users could be accessed by the Chinese government. Indeed, on July 31, 2020, President Trump announced a plan to ban TikTok in the U.S. over national security concerns. As Fastly’s Chief Executive Officer (“CEO”) admitted on the Q2 2020 earnings call, “any ban of the TikTok app by the US would create uncertainty around our ability to support this customer[,]” and “the loss of this customer’s traffic would have an impact on our business.”

On this news, Fastly’s share price fell $19.28 per share, or approximately 17.7% from the previous trading day’s closing price of $108.92 per share, to close at $89.64 per share on August 6, 2020. Fastly’s shares continued to decline on August 6, 2020, when President Trump issued an executive order effectively banning TikTok, declining another $10.31 per share from the closing price on August 6, 2020, or approximately 11.5%, to close at $79.33 per share on August 7, 2020.

The Pomerantz Firm, with offices in New York, Chicago, Los Angeles, and Paris is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, the Pomerantz Firm pioneered the field of securities class actions. Today, more than 80 years later, the Pomerantz Firm continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomerantzlaw.com.

CONTACT: Robert S. Willoughby Pomerantz LLP [email protected] 888-476-6529 ext. 7980

 

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News19 hours ago

Hung Lung Group Commemorates its 60th Anniversary with Volunteer Activities across Hong Kong and Nine Mainland Cities

Close to 1,000 Volunteers Offer Caring Support to 4,500 Beneficiaries HONG KONG, Sept. 19, 2020 /PRNewswire/ — To mark the...