BD (Becton, Dickinson and Company) has closed its $4.2 billion acquisition of Edwards Lifesciences’ Critical Care business. It will be renamed as BD Advanced Patient Monitoring.
 
The transaction, which was first revealed in June, added a portfolio of monitoring technologies, advanced artificial intelligence (AI)-enabled clinical decision tools, and a robust innovation pipeline to BD’s business. The technologies are often used at the same time as the Alaris infusion system in the operating room or intensive care units.
 
BD said the combination of the advanced monitoring and existing infusion platforms can create opportunities for closed-loop hemodynamic monitoring and IV fluid and medication administration by integrating combined data sets and interoperability capabilities.
 
New technologies in BD Advanced Patient Monitoring include the Swan Ganz pulmonary artery catheter, minimally invasive sensors, noninvasive cuffs, tissue oximetry sensors, and monitors. The smart technologies are powered by advanced data analytics with machine learning and AI-based predictive and prescriptive algorithms. This helps to better understand current and future patient conditions and offers clinical decision support tools.
 
The business will operate as a separate unit in BD’s Medical segment to align with its smart connected care approach, the company said. It will remain in Irvine, Calif. Katie Szyman, who was corporate VP of Critical Care under Edwards since 2015, was named worldwide president of BD Advanced Monitoring.
 
BD said the deal’s close will likely have an immaterial impact to its fiscal year 2024 guidance.

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“The healthcare industry is being redefined by AI, robotics, and autonomous solutions, and our team continues to accelerate the application of these new technologies to improve the quality and cost of patient care around the world,” said Tom Polen, chairman, CEO, and president of BD. “Today, BD is proud to welcome BD Advanced Patient Monitoring, whose leading technologies, AI-enabled solutions and strong innovation pipeline expand our portfolio of smart, connected care solutions, create significant value for customers, and put BD at the forefront of enabling the future of health care.”

Edwards’ perspective

Edwards said proceeds from the $4.2 billion, all-cash transaction will fund strategic initiatives, which includes its recent acquisitions and share repurchases. The company’s board recently authorized a further $1.5 billion for share repurchase.

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The company recently entered a $500 million Accelerated Share Repurchase agreement, and previously in August repurchased $500 million of common stock through a 10b5-1 agreement and open market repurchases. After this $1 billion repurchase, Edwards now has $1.4 billion remaining for other future share repurchases.
 
“Critical Care has made significant contributions to our company and has a long history of innovation. We are grateful to the team for their commitment to improving patient outcomes globally,” said Bernard Zovighian, Edwards’ CEO. “The sale of Critical Care reflects our sharpened focus as a structural heart innovator. Within our existing business, TAVR has significant opportunities to grow and improve how AS patients are treated, TMTT’s contribution to Edwards’ growth is just getting started, and we continue to expand our surgical leadership. In addition, our focus will support patients in need of therapies to treat aortic regurgitation and non-valvular structural heart disease through implantable technologies.”