BD Announces Major Restructuring with Diagnostic and Bioscience Divisions Spinoff

BD (Becton, Dickinson and Company) has unveiled plans for a significant corporate restructuring, announcing the divestiture of its diagnostic and biosciences businesses. This strategic move, part of the company's "BD 2025" strategy, aims to transform BD into a pure-play medtech leader focused on medical essentials, interventional devices, and connected care.

The "New BD": A Focused Medtech Powerhouse

The restructured BD will retain its core medical technology divisions, including:

• Medical essentials, such as blood collection and IV medication delivery hardware
• Interventional devices
• Connected care programs, including recent acquisitions from Edwards Lifesciences
• Biopharma systems (formerly pharmaceutical systems), developing delivery devices for drugs and biologics

Tom Polen, President and CEO of BD, stated, "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."

Diagnostic and Biosciences: A New Life Sciences Leader

The spun-off entity will combine BD's diagnostic solutions and biosciences divisions, which generated approximately $3.4 billion in sales in 2024. This new company will focus on:

• Infectious disease testing
• Cervical cancer screening
• Flow cytometry instruments
• Single-cell multiomics tools for research

Polen expressed confidence in the new entity's potential, saying, "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."

Financial Performance and Future Outlook

BD reported strong first-quarter earnings for fiscal 2025, with companywide revenues of $5.17 billion, representing a 9.8% reported gain or 3.9% organic growth. The company's board of directors has approved the separation transaction, with options including a spinoff or outright sale. BD expects to announce further details by the end of its 2025 fiscal year on September 30, with the transaction slated for completion by the end of the following year.

The restructuring aligns with BD's 2025 strategic plan, initiated in 2020, which targets long-term, compounded annual revenue growth of 5.5% or more while focusing on high-growth and high-margin markets. This move follows BD's earlier divestiture of its diabetes franchise nearly three years ago, further streamlining the company's operations.