BD splits to forge two industry giants driving MedTech and Life Sciences with sharper focus and rapid growth

BD (Becton, Dickinson and Company) has announced the separation of its Biosciences and Diagnostic Solutions business into an independent entity. This decision, unanimously authorized by BD's board of directors, is aimed at enhancing strategic focus, optimizing capital allocation, and unlocking significant value for stakeholders.

The Rationale Behind the Split

BD’s decision to separate its Biosciences and Diagnostic Solutions unit follows a comprehensive business portfolio evaluation launched in early 2024. This move is designed to streamline operations, create sharper market focus, and enhance investment strategies. The restructuring will result in two distinct powerhouses:

• New BD – A pure-play MedTech leader focused on high-growth healthcare sectors.
• Biosciences and Diagnostic Solutions – A dedicated Life Sciences Tools and Diagnostics company poised for innovation-driven expansion.

According to Tom Polen, BD’s Chairman, CEO, and President, this strategic separation builds on the company’s BD 2025 strategy, which has positioned BD as a high-growth, high-margin organization. "This transaction is designed to position both businesses to thrive in our respective sectors and deliver value for shareholders," he stated.

New BD: A Focused MedTech Innovator

Post-separation, New BD will emerge as a MedTech specialist with a portfolio spanning four key segments:

• Medical Essentials – Core medical delivery solutions, including IV catheters, syringes, and blood collection systems.
• Connected Care – Advanced patient monitoring and pharmacy automation leveraging AI and data analytics.
• BioPharma Systems – A rebranded pharmaceutical systems division focused on drug delivery devices, including solutions for biologics and self-injection treatments.
• Interventional – Specialized products addressing chronic diseases, such as cancer and peripheral vascular disease.

With an expected 2024 revenue of $17.8 billion and a $70+ billion addressable market, New BD is poised for sustained growth. The company plans to drive investments in R&D, pursue strategic acquisitions, and leverage a strong recurring revenue model to maintain a best-in-class MedTech portfolio.

Biosciences and Diagnostic Solutions: A Pure-Play Leader in Life Sciences

The separated Biosciences and Diagnostic Solutions business will focus on:

• Flow Cytometry and Single-Cell Multiomics – Driving immunology and cancer research advancements.
• Molecular and Infectious Disease Diagnostics – Strengthening BD’s leadership in microbiology, cervical cancer screening, and point-of-care testing.

With an anticipated 2024 revenue of $3.4 billion and a $22+ billion addressable market, this new entity is positioned to capitalize on innovation-driven growth. More than 80% of its revenue will be recurring, ensuring a steady financial outlook.

The Road Ahead: Separation Timeline and Execution

BD is evaluating multiple separation strategies, including a Reverse Morris Trust, spin-off, or sale, with final details expected by the end of fiscal 2025. Completion is targeted for fiscal 2026, contingent on regulatory approvals.

While BD’s Investor Day (previously scheduled for February 26, 2025) has been postponed, the company remains committed to executing its BD 2025 strategy while driving innovation and shareholder value.

Expert Take: A Calculated Move for Long-Term Growth

BD’s split aligns with broader MedTech and life sciences industry trends, where pure-play entities often achieve better market valuation and operational efficiency. This separation not only enables BD to sharpen its MedTech focus but also allows Biosciences and Diagnostic Solutions to thrive independently in a competitive life sciences market.

As BD charts this bold course, both entities are well-positioned to accelerate innovation, capture growth opportunities, and reinforce their leadership in their respective sectors. The market will be closely watching BD’s execution strategy and the potential impact of this separation on shareholder value and industry positioning.