BD set to spin off biosciences and diagnostic solutions division

USA – Becton, Dickinson and Company (BD) has announced plans to separate its Biosciences and Diagnostic Solutions business into an independent entity, aiming to enhance focus and drive growth in both segments.

This strategic move, unanimously approved by BD’s board of directors, is expected to be completed by 2026.

The decision follows a comprehensive portfolio evaluation initiated in early 2024. Post-separation, BD will emerge as a pure-play medical technology company, concentrating investments in research and development, as well as growth-accretive mergers and acquisitions. The restructured BD will operate across four segments:

• Medical Essentials: Focusing on products like IV catheters, syringes, and blood collection solutions.
• Connected Care: Encompassing medication management and advanced patient monitoring systems.
• BioPharma Systems: Specializing in drug delivery devices for the pharmaceutical industry.
• Interventional: Addressing treatments for conditions such as urinary incontinence and peripheral vascular disease.

The newly formed Biosciences and Diagnostic Solutions entity is projected to generate approximately US $3.4 billion in fiscal 2024 revenue, targeting a US $22 billion addressable market with mid- to high-single-digit growth.

This segment will focus on immunology and cancer research solutions, including flow cytometry instruments and reagents, as well as microbiology and infectious disease diagnostics.

Industry Context

BD’s decision aligns with a broader trend in the medical technology sector, where companies are streamlining operations to enhance focus and unlock value.

Notably, Johnson & Johnson has put its stroke care business, Cerenovus, up for sale, aiming for a valuation exceeding US $1 billion. This move is part of J&J’s strategic reorganization of its medical technology division.

Similarly, 3M has announced plans to spin off its healthcare business into a standalone entity named Solventum, expected to be completed by April. This initiative aims to provide the new company with greater operational focus and agility.