Becton Dickinson considers splitting its life sciences unit

USA – U.S. medical device maker Becton Dickinson (BD) is reportedly exploring the separation of its life sciences unit, which includes biosciences and diagnostic solutions, with an estimated valuation of US $30 billion.

The potential announcement could coincide with the company’s earnings report later this week, according to a source familiar with the matter. BD is scheduled to release its results on Thursday.

The life sciences division produces diagnostic tools for detecting infectious diseases and cancers, as well as substances used in research. In fiscal year 2024, the unit generated US $5.19 billion in sales, accounting for over 25% of BD’s total revenue.

This possible move comes amid pressure from activist investor Starboard Value, which reportedly holds a stake in BD.

Starboard has urged the company to sell the life sciences unit, as noted in a Financial Times report. Although the size of Starboard’s stake is unclear, the hedge fund has engaged with BD’s management and sent a letter to the board advocating for the separation.

In response to inquiries about the matter, a BD spokesperson stated, “BD welcomes input and feedback from all of our shareholders,” but declined to comment further. Starboard Value has not yet responded to requests for comments.

Over the years, BD has made significant acquisitions and divestments. In 2022, it spun off its diabetes care business into a separate company called Embecta Corp.

The following year, it sold its surgical instrumentation platform to Steris. Additionally, BD acquired Edwards Lifesciences’ critical care unit in 2024 for US $4.2 billion to enhance its offerings in advanced blood and heart monitoring systems.

BD shuts Israel manufacturing plant

Despite these expansions, BD has been streamlining its operations to improve efficiency. Recently, the company announced the closure of its manufacturing plant in Caesarea, Israel, which it had acquired in 2017 through the purchase of Caesarea Medical Electronics.

This facility, employing about 200 people, produces infusion pump systems used in hospitals and home care.

BD explained its decision in a statement, saying, “After a thorough review, BD has determined that we can more efficiently meet our customer and capacity needs by utilizing other facilities.”

The transition of manufacturing operations to other BD locations will continue through June 2025. The company emphasized its commitment to supporting affected employees, offering job placement assistance and exploring opportunities within BD’s global operations.

While manufacturing in Israel will cease, BD clarified that its marketing and sales operations in the country will remain unaffected.

The company reaffirmed its dedication to healthcare delivery in Israel, stating that it will continue serving its customers in the region.

BD, listed on the New York Stock Exchange with a market value of US $71 billion, employs over 70,000 people globally.

The medical device giant operates 30 manufacturing and distribution facilities in the U.S. and additional plants across Europe and Asia.