BD (Becton, Dickinson and Company) has announced a plan to separate BD's Biosciences and Diagnostic Solutions business from the rest of the company.
The firm says the move will enhance strategic focus, growth-oriented investments and capital allocation for both BD and the separated business and enhance value creation for shareholders.
"Our BD 2025 strategy has transformed the company into a faster-growing, more profitable organisation positioned at the forefront of long-term growth trends in health care, and we believe today's announcement is an exciting next step in unlocking significant potential value for all our stakeholders," said Tom Polen, Chairman, CEO and President of BD. "We believe the separation will position New BD as a differentiated MedTech leader and enable optimised investment to accelerate our innovation pipeline and ongoing margin enhancement through BD Excellence to further fund growth.
“We believe Biosciences and Diagnostic Solutions is expected to deliver substantial value as a pure-play leader in life sciences and will be well-positioned to execute on its unique and compelling solutions and growth opportunities. This transaction is designed to position both businesses to thrive in our respective sectors and deliver value for shareholders."
The separation decision was the result of a comprehensive business portfolio evaluation launched by BD in early 2024. Following the separation, New BD will be a pure-play medical technology company with strong, leading positions across four new operating segments: ‘Medical Essentials’ (including BD's Medication Delivery Solutions and Specimen Management businesses); ‘Connected Care’ (including BD's Medication Management Solutions and Advanced Patient Monitoring businesses); ‘BioPharma Systems’ (a new name for the Pharmaceuticals Systems business unit); and ‘Interventional’ (to include BD's Urology and Critical Care, Peripheral Intervention and Surgery businesses).
Biosciences is a leader in immunology and cancer research solutions and related clinical diagnostics, including flow cytometry instruments and reagents, and has innovative single-cell multiomics tools. Diagnostic Solutions is a leader in microbiology and infectious disease diagnostics, including molecular diagnostics, cervical cancer screening, microbiology automation and point-of-care offerings.
BD expects to announce more specifics on the separation plans by the end of the 2025 fiscal year and intends to target completion of the transaction in 2026.