Activist Commentary: Starboard is a very successful activist investor and has extensive experience helping companies focus on operational efficiency and margin improvement. Starboard also has significant experience with its strategic activism. In 57 prior campaigns where it had a strategic thesis, the firm had a 32.96% return versus 14.61% for the Russell 2000 during the same period. Additionally, Starboard has initiated activist campaigns at 24 prior health-care companies and its average return on these si ...

2025年2月5日， 碧迪医疗 BD（Becton, Dickinson and Company）（纽约证券交易所代码：BDX）宣布 其董事会一致授权管理层制定分拆计划，将BD的生物 科学与诊断解决方案业务（Biosciences and Diagnostic Solutions）从BD的其他业务中分离出来。 （本文末附官方PPT全文） 大白话是说：剥离其 生物科学与诊断业务；转型成为一个纯正的医疗器械公司。 要知道，被剥离的业务客户主要为实验室；而医疗器械的客户主要为医疗机 构。相信BD这个战略性举措，来自于对医疗器械市场的重视。 生物科学与诊断业务属于碧迪医疗的生命科学部门，该部门在2024财年收入约为 12.8亿美元（约合93.2亿人民币） 。拆分后，新的BD收入预计为178亿美 元。 此次分拆旨在通过增强战略聚焦、优化投资和资本分配，以及提升市场估值，释放显著的股东价值。 公司预计在2025财年结束前宣布更多分拆计划的具 体细节，并计划在2026财年完成交易。 # 分拆计划的背景与目标 碧迪医疗的分拆计划是基于2024年初启动的全面业务组合评估的结果。 此次拆分将标志着碧迪医疗在剥离其糖尿病部门 Em ...

Revenue Performance - For the three months ended December 31, 2024, worldwide revenues reached $5.168 billion, reflecting a 9.8% increase from the prior-year period, driven by a 3.5% volume increase and a 5.7% contribution from the acquisition of Advanced Patient Monitoring[100]. - The Medical segment reported total revenues of $2.615 billion, a 17.3% increase compared to $2.230 billion in the prior year, with significant growth in Medication Delivery Solutions and Medication Management Solutions[102]. - Life Sciences segment revenues increased slightly by 0.7% to $1.297 billion, with notable declines in the Biosciences unit, which saw a 3.7% decrease in sales[110]. - The Interventional segment generated revenues of $1.257 billion, marking a 5.8% increase from $1.188 billion in the previous year, driven by strong sales in Surgery and Urology and Critical Care units[111]. - Total revenues for the first quarter of 2025 were $5,168 million, a 9.8% increase from $4,706 million in the same period of 2024[115]. - U.S. revenue growth was 12.0%, driven by strong sales in the Medical segment's Medication Delivery Solutions and Medication Management Solutions units[115]. - International revenue growth was 6.7%, primarily driven by the Medical segment's Medication Delivery Solutions unit, with emerging markets contributing $729 million, a 1.8% increase[116]. Financial Metrics - Cash flows from continuing operating activities were $693 million in the first three months of fiscal year 2025, with $830 million in cash and equivalents at the end of the period[100]. - The company paid cash dividends of $302 million to common shareholders during the first three months of fiscal year 2025[100]. - The gross profit margin for the first quarter of 2025 was 43.3%, up from 43.1% in the prior year, reflecting lower manufacturing costs and a foreign currency impact of 0.3%[119]. - Net income for the first quarter of 2025 was $303 million, compared to $281 million in the same period of 2024, with diluted earnings per share increasing to $1.04 from $0.96[132]. - Total specified items impacting financial results amounted to $764 million in the first quarter of 2025, up from $475 million in the prior year[117]. - Cash flows from operating activities in the first quarter of 2025 were $693 million, down from $855 million in the same period of 2024[133]. - Total debt as of December 31, 2024, was $18,758 million, with a weighted average cost of total debt at 3.3%[138]. - The company reported a net interest expense of $132 million for the first quarter of 2025, compared to $77 million in the prior year, primarily due to higher total debt[127]. - The effective income tax rate for the first quarter of 2025 was 0.9%, significantly lower than 21.6% in the same period of 2024, influenced by a favorable discrete item[130]. - The company has a maximum unsecured borrowing capacity of $2.750 billion under its U.S. and euro commercial paper programs, with $475 million outstanding as of December 31, 2024[142]. - The corporate credit ratings from S&P, Moody's, and Fitch remained unchanged as of December 31, 2024, compared to September 30, 2024[144]. - The company has not experienced significant increased credit loss risks due to current macroeconomic conditions, although future risks remain uncertain[147]. Regulatory and Compliance Issues - The FDA issued a Warning Letter on November 22, 2024, related to the company's Dispensing quality management system, which may lead to regulatory actions if not adequately addressed[156]. - The company received FDA 510(k) clearance for its updated BD Alaris™ Infusion System on July 21, 2023, which includes enhanced cybersecurity and interoperability features[154]. - The company is implementing changes to comply with the EPA's National Emission Standards for Hazardous Air Pollutants (NESHAP) regarding ethylene oxide emissions, which may incur additional costs[158]. - The company has retained an independent expert to conduct periodic audits of its quality management system through 2025 in response to FDA compliance issues[149]. - The company anticipates that future regulatory requirements regarding ethylene oxide may require additional investments in emissions control technology[159]. - The company has no accruals associated with compliance with the Consent Decree as of December 31, 2024, believing that a loss is not probable[153]. - The company is assessing the impact of the EPA's interim registration review decision for ethylene oxide on its sterilization facilities and operations[159]. Strategic Initiatives and Market Conditions - The company plans to separate its Biosciences and Diagnostic Solutions business, targeting completion of the transaction in fiscal year 2026[95]. - The company is focused on growth through investments in research and development, strategic acquisitions, and geographic expansion as part of its BD 2025 strategy[96]. - The company faces potential adverse impacts from market dynamics in China, including volume-based procurement programs and government compliance initiatives[97]. - The company experienced temporary shortages in supply of certain materials, which could affect its operations and financial results[98]. - International market conditions, including geopolitical developments and economic sanctions, could negatively impact the company's operations and supply chain costs[33]. - Changes in U.S. federal or foreign laws, including potential tariffs and trade barriers, may adversely affect the company's results of operations and supply chain[33]. - The company is subject to increased pricing pressure due to competitive factors, including new product introductions and consolidation among healthcare providers[34]. - Regulatory focus on sterilization processes may impact the company's ability to manufacture and supply products, particularly in light of increased scrutiny on ethylene oxide emissions[34]. - The company is at risk of supply chain disruptions due to public health crises, which could decrease demand for its products and disrupt operations[34]. - The company must navigate potential litigation and investigations related to compliance with healthcare laws and regulations, which could impact its operations and reputation[35]. - The company is exposed to risks associated with climate change regulations and changing stakeholder preferences regarding sustainability[35]. - The company’s ability to expand in emerging markets is contingent on local economic and political conditions, as well as necessary infrastructure enhancements[34]. - The company faces challenges in recruiting and retaining key employees, which could increase labor costs and affect operational efficiency[34].

Financial Data and Key Metrics Changes - The company reported a revenue growth of 9.6%, with organic growth at 3.9% for Q1 2025, exceeding financial goals [11][21] - Adjusted diluted EPS increased by 28% to $3.43, driven by strong operational performance [11][23] - Adjusted gross margin reached 54.8%, and adjusted operating margin was 23.6%, reflecting expansions of 370 and 340 basis points year-over-year, respectively [11][23] Business Line Data and Key Metrics Changes - The MedTech business led organic growth with approximately 5%, driven by volume increases and market share gains across core devices [21] - Diagnostic Solutions experienced modest growth, supported by Lab Automation and BD MAX molecular platform IVD assays, but faced challenges due to respiratory season timing [21] - Biosciences showed an expected decline due to market dynamics and reduced research funding in China and the US [22] Market Data and Key Metrics Changes - Total company organic growth was primarily driven by strong performance in the US, while China experienced a decline, particularly in Biosciences [22] - The company anticipates a translational currency headwind of approximately $250 million for the full fiscal year, impacting revenue guidance [27] Company Strategy and Development Direction - The company announced its intention to separate the Biosciences and Diagnostic Solutions business to enhance strategic focus and drive growth [5][32] - The New BD will focus on being a pure-play MedTech company, while the separated business will aim to be a leader in Life Sciences Tools & Diagnostics [32][41] - The separation is expected to unlock significant value for both entities, allowing for targeted capital deployment and enhanced focus on high-growth areas [32][58] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the operational performance and affirmed full-year guidance despite currency impacts [12][28] - The company is closely monitoring market dynamics, particularly in China and research funding levels, while maintaining a cautious outlook [26][116] - Management highlighted the strong innovation pipeline and the potential for both New BD and the separated business to thrive in their respective markets [19][32] Other Important Information - The company returned over $1 billion to shareholders in Q1, including $300 million in dividends and a $750 million accelerated share buyback [12][25] - The planned separation will allow the company to focus on executing its BD 2025 strategy and continue investments in innovation and growth [5][57] Q&A Session Summary Question: Why now for the separation and how to manage dissynergies? - Management indicated that the separation is a strategic move to unlock value and enhance focus on high-growth areas, with ongoing monitoring of potential dissynergies [68][69] Question: Impact of tariffs on BD's operations? - Management noted that the largest manufacturing footprint is in North America, and they are monitoring tariff discussions closely, particularly regarding potential carve-outs for medical devices [80] Question: Areas for investment post-separation? - Management emphasized the focus on high-growth accretive opportunities, particularly in the Interventional segment and R&D for new product launches [88][90] Question: Trends in China and research spending? - Management acknowledged a slowdown in research spending impacting performance, particularly in China, but expressed confidence in capitalizing on recovery when it occurs [116][120] Question: EPS guidance and integration of Critical Care? - Management clarified that the operating strength from Q1 is reflected in the updated EPS guidance, and integration efforts are ongoing [134]

Advancing the world of healthTM Caution Concerning Forward-looking Statements This presentation and accompanying webcast contain certain estimates and other forward-looking statements (as defined under Federal securities laws) regarding BD's future prospects and performance, including, but not limited to, future revenues, margins, earnings per share, leverage targets and capital deployment, and the contemplated separation of BD's Biosciences and Diagnostic Solutions business, including, but not limited to, ...

For the quarter ended December 2024, Becton Dickinson (BDX) reported revenue of $5.17 billion, up 9.8% over the same period last year. EPS came in at $3.43, compared to $2.68 in the year-ago quarter.The reported revenue compares to the Zacks Consensus Estimate of $5.1 billion, representing a surprise of +1.32%. The company delivered an EPS surprise of +15.10%, with the consensus EPS estimate being $2.98.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and h ...

Becton Dickinson (BDX) came out with quarterly earnings of $3.43 per share, beating the Zacks Consensus Estimate of $2.98 per share. This compares to earnings of $2.68 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 15.10%. A quarter ago, it was expected that this medical device manufacturer would post earnings of $3.77 per share when it actually produced earnings of $3.81, delivering a surprise of 1.06%.Over the last four qua ...

Revenue Performance - Revenue for Q1 FY2025 was $5.2 billion, representing a 9.8% increase year-over-year, with 9.6% growth on a currency-neutral basis and 3.9% organic growth[4] - BD Medical segment revenue was $2.615 billion, up 17.3%, driven by strong performance in Medication Delivery Solutions[12] - BD Life Sciences segment revenue was $1.297 billion, showing a slight increase of 0.7%[12] - BD Interventional segment revenue reached $1.257 billion, reflecting a 5.8% increase[12] - Revenues for the three months ended December 31, 2024, were $5,168 million, representing a 9.8% increase compared to $4,706 million in the same period of 2023[31] - Total revenues for the three months ended December 31, 2024, were $5,168 million, representing a 9.8% increase compared to $4,706 million in 2023[38] - BD Medical segment revenues increased to $2,615 million, up 17.3% from $2,230 million in the prior year[41] - Organic revenue for BD Medical was $2,343 million, reflecting a 5.1% growth compared to $2,230 million in 2023[41] - BD Life Sciences reported total revenues of $1,297 million, a slight increase of 0.7% from $1,288 million in the previous year[38] Earnings and Guidance - GAAP diluted EPS was $1.04, an increase of 8.3%, while adjusted diluted EPS grew by 28.0% to $3.43[4] - BD increased its FY25 adjusted diluted EPS guidance to a range of $14.30 to $14.60, reflecting a growth of approximately 10% at the midpoint[15] - Reported diluted earnings per share for the three months ended December 31, 2024, were $1.04, an increase of 8.3% from $0.96 in 2023[44] - Adjusted diluted earnings per share rose to $3.43, marking a 28.0% increase from $2.68 in the same period last year[44] - For FY 2025, BD expects reported revenue growth of 7.9% to 8.4%, with organic revenue growth projected at 4.0% to 4.5%[47] - The company anticipates total revenues for FY 2025 to be approximately $21.7 to $21.9 billion[49] Costs and Expenses - Research and development expenses rose by 18.2% to $343 million, compared to $290 million in the previous year[31] - Total operating costs and expenses increased by 10.5% to $4,715 million, up from $4,267 million in the prior year[31] - The company incurred $67 million in accruals impacting revenues due to recent developments related to Italian government medical device payback legislation[54] - A charge of $38 million was recorded to cost of products sold for future product remediation efforts[54] - The company recognized a $175 million charge related to an estimated liability for an SEC investigation concerning reporting issues with BD Alaris infusion pumps[54] - Costs associated with the Advanced Patient Monitoring acquisition included transaction costs recorded in integration and restructuring expenses[52] - Significant costs were incurred to comply with the European Union Medical Device Regulation, categorized as one-off costs limited to a specific period[53] - Integration and restructuring activities resulted in additional costs that impacted overall financial performance[51] - The separation of BD's former Diabetes Care business incurred costs recorded in other operating expenses[52] Cash Flow and Assets - Cash and equivalents decreased to $711 million from $1,717 million at the end of the previous quarter[32] - Total assets decreased to $54,665 million from $57,286 million in the prior quarter[32] - The company generated $693 million in net cash from operating activities, down from $855 million in the same period last year[33] Strategic Initiatives - The company announced plans to separate Biosciences and Diagnostic Solutions to enhance growth and innovation in their respective markets[2] - The BD Onclarity™ HPV Assay was added to the ASCCP guidelines, enhancing its market position in cervical cancer screening[11] - The Advanced Patient Monitoring unit, newly integrated into BD Medical, contributed to the overall revenue growth but was not reported in the previous year[39] Legal and Compliance Issues - Legal matters and asset impairment charges have affected the company's financial results, reflecting unusual operational impacts[54] - The company is focused on developing processes for compliance with new regulatory frameworks, impacting research and development expenses[53] - The company recorded certain income and expense items affecting comparability, including product remediation costs and legal matters[54]

Company Delivers Revenue, Margin and Earnings Ahead of its Expectations Revenue of $5.2 billion increased 9.8% as reported, 9.6% currency-neutral and 3.9% organic GAAP and adjusted diluted EPS of $1.04 and $3.43 grew 8.3% and 28.0%, respectively BD completes $750 million share repurchase to date in FY25 Company increases FY25 adjusted diluted EPS guidance at the midpoint while absorbing translational currency1FRANKLIN LAKES, N.J., Feb. 5, 2025 /PRNewswire/ -- BD (Becton, Dickinson and Company) (NYSE: BDX), ...

Compelling opportunity expected to unlock substantial value through enhanced focus, tailored investment and capital allocation, and optimized market valuation  "New BD," built on momentum of BD 2025 strategy, will be well-positioned as a scaled, pure-play MedTech leader focused on attractive categories shaping the future of health care Biosciences and Diagnostic Solutions to realize its full market potential as differentiated leader in Life Sciences Tools and Diagnostics, with robust innovation pipeline an ...