Becton Dickinson plans to break off its biosciences and diagnostic solutions business and focus on the medtech sector.
The company said late Wednesday the split could take the form of a sale, spinoff or other transaction and is expected to close in 2026.
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The company’s remaining business, which is being referred to internally as New BD, will operate in four segments — medical essentials, connected care, biopharma systems and interventional, which includes urology, critical care, peripheral interventions and surgery. New BD will make investments in research and development and pursue mergers and acquisitions, said Tom Polen, chairman, CEO and president, during a fiscal first-quarter earnings call Thursday.
Becton Dickinson said it has explored the possibility of splitting its business since early 2024 when it conducted a thorough evaluation of its portfolio.
Polen told analysts on the call that the company has been focused on “transforming into a faster growing, more profitable organization” for the past five years by shifting its portfolio mix to higher-growth markets and introducing new products.
The company is expected to more than double its new product revenue since 2020, when it launched its BD 2025 strategy for driving long-term growth. During that time, it spent about $7 billion on 20 transactions including the acquisition of Edwards Lifesciences’ critical care product group in September.
New BD is projected to generate about $17.8 billion in revenue for fiscal year 2024, according to the company. The company said the target market for its products is worth more than $70 billion and is expected to grow by about 5% per year.
For its fiscal 2025 first quarter, which ended Dec. 31, Becton Dickinson reported net income of $303 million, or $1.04 per share, compared with $281 million, or 96 cents per share, in the year-ago quarter. Revenues totaled about $5.2 billion, up 9.8%.
