On February 5, 2025, Becton, Dickinson and Company (BD) announced plans to separate its Biosciences and Diagnostic Solutions business into an independent entity. The Biosciences and Diagnostic Solutions business is reportedly tailored to life science research and diagnostic tools, leaving behind a “New BD” more focused on medical technologies. The move is intended to enhance focus, drive growth, and unlock value for shareholders. Details regarding the separation are still being worked out, but BD expects to announce a separation plan by the end of fiscal year 2025 and complete the transaction in fiscal year 2026.
Post-separation, the New BD will concentrate on medical technology innovation across four operating segments: Medical Essentials, Connected Care, BioPharma Systems, and Interventional. New BD’s projected 2024 revenue is approximately $17.8 Billion in a market that is expected to grow at approximately 5%. The split is expected to provide a “more durable cash flow” that will help “drive focused investment” and “accelerate New BD’s innovation pipeline.”
BD’s CEO, Tom Polen, said he believes the separation would help differentiate BD in the medical-technology industry, and allow the company to invest more in innovation and margin growth. Analysts at J.P. Morgan and William Blair have expressed support for the decision, noting that New BD will have a mix of assets at its disposal. They also suggest that BD could leverage this platform to acquire innovative growth assets, particularly in areas like cardiovascular and urology.
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