BD’s board of directors has unanimously authorized BD management to pursue a plan to separate BD’s Biosciences and Diagnostic Solutions business from the rest of BD to enhance strategic focus and growth-oriented investments and capital allocation for both BD and the separated business and enhance value creation for shareholders.

The separation decision was the result of a comprehensive business portfolio evaluation in early 2024. The company believes the separation will unlock value in two ways. The creation of a New BD that is recognized as a focused, innovative, and growth-oriented medical technology leader with four attractive segments aligned to essential needs and higher-growth trends in health care. 

“Our BD 2025 strategy has transformed the company into a faster-growing, more profitable organization 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 optimized 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 company expects to announce more specifics on the separation plans by the end of fiscal 2025 and intends to target completion of the transaction in fiscal 2026. 

After the separation, New BD expects to drive concentrated investments in high-impact R&D and disciplined capital allocation, including growth accretive M&A, which positions the company to deliver differentiated and durable growth rates in Medtech. Its four operating segments include:

• Medical Essentials, which includes BD’s Medication Delivery Solutions and Specimen Management businesses, manufacturing devices such as IV catheters, PICCS, flush, and other essential vascular access and management solutions, blood collection solutions, syringes, and advanced needle technologies.
• Connected Care, which includes BD’s Medication Management Solutions and Advanced Patient Monitoring businesses, with millions of smart devices that use automation, artificial intelligence, and analytics.

• Interventional, which includes BD’s Urology & Critical Care, Peripheral Intervention, and Surgery businesses that advance the treatment of high-burden chronic conditions.
• BioPharma Systems will bring a new name and increased focus to the Pharmaceuticals Systems business unit, which is the global leader in biologic drug delivery, developing and manufacturing drug delivery devices for the pharmaceutical industry. 

The New BD will have a sharper focus on healthcare provider and patient end-markets. The Biosciences and Diagnostic Solutions business is also expected to benefit from enhanced focus and investments as a pure-play Life Sciences Tools and Diagnostics leader.

The company believes that independent of BD, the business will be well-positioned to better meet the needs of research and laboratory customers and accelerate growth through more focused investment and capital allocation within the life sciences sector, potentially resulting in enhanced value for shareholders.

The completion of any separation transaction will be contingent upon various conditions and approvals, including approval by BD’s board of directors, receipt of requisite regulatory clearances, and compliance with applicable U.S. Securities and Exchange Commission requirements.