Baxter International net profit declined by 14 per cent during the third quarter ended September 2014 to $468 million from $544 million in the corresponding period of last year despite its net sales improved by 13 per cent to $4,197 million from $3,710 million.

These results reflect the income contribution from the vaccines franchise of $21 million and after-tax special items totaling $273 million primarily for intangible amortization and costs associated with upfront and product development milestone payments, integration of the company's acquisition of Gambro AB, and Baxter's planned separation.

Sales within the United States of $1.8 billion rose 7 per cent, while international sales of $2.4 billion increased 18 per cent. Including discontinued vaccines revenues, Baxter's global sales advanced 13 per cent to $4.3 billion and when also adjusting both periods for the contribution of Gambro, Baxter's sales rose 5 per cent, which was at the higher-end of the company's previously-issued guidance. Foreign currency did not have a material impact on sales growth in the quarter.

BioScience revenues of $1.7 billion grew 8 per cent from the prior-year period driven primarily by double-digit growth and continued strong demand for the company's hemophilia therapies, including ADVATE [Antihemophilic Factor (Recombinant), Plasma/Albumin-Free Method] and FEIBA (an inhibitor therapy), as well as the benefit from government collaborations and the timing of international tenders. BioScience sales, including vaccines, rose 7 per cent.

Medical products sales of $2.5 billion increased 17 per cent from the prior-year period, and excluding Gambro revenues from both periods, medical products sales grew 4 per cent. Robust growth in the US. was led by double-digit gains in peritoneal dialysis patients, as well as strong sales of intravenous and nutritional therapies.

For the first nine months of 2014, Baxter reported net income of $1.5 billion. Excluding special items in both periods, Baxter's adjusted net income for the nine-month period increased 7 per cent to $2.1 billion. Year-to-date income from the vaccines franchise totaled $122 million on a reported basis, or $135 million adjusting for special items.

Baxter's worldwide reported sales for the nine-month period totaled $12.2 billion and rose 15 per cent. Including the discontinued vaccines revenues, Baxter's global sales advanced 14 per cent to $12.5 billion, and when also adjusting both periods for the contribution of Gambro, Baxter's sales rose 4 per cent. BioScience sales of $4.8 billion advanced 6 per cent, while medical products sales of $7.4 billion grew 21 per cent.

"Our performance has afforded us the opportunity to accelerate investments in research and development and further enhance manufacturing, quality and operational excellence, while meeting our stated financial objectives," said Robert L. Parkinson, Jr., chairman and chief executive officer. "We also continue to position our businesses for sustained success as we strengthen the portfolios with new collaborations, advance our new product pipeline with the recent achievement of meaningful milestones, and remain engaged in our work to separate Baxter into two leading, global healthcare companies aimed at enhancing shareholder value over the long-term."