BD (Becton Dickinson)

Business structure

By May 2021, Becton Dickinson's operations are divided between three main divisions:

BD Life Sciences - provides solutions from discovery to diagnosis in infectious diseases and cancer. The direction includes:

• pre-analytical solutions for biological sample management;
• solutions for immunological research, including flow cytometry and tools for high-throughput analysis of protein and RNA expression at the single cell level;
• microbiology and molecular diagnostics;
• solutions for automation of laboratories and informatics;
• differentiated reagents and assays.

BD Medical - solutions for:

• reducing the spread of infection,
• improving the treatment of diabetes (from 2022 it was separated into a separate company embecta),
• acceleration of drug delivery,
• improvements in surgical procedures and
• ensuring the management of medicines.

BD Interventional - solutions for surgical, endovascular, urological and resuscitation interventions.

Performance indicators

Fiscal year ends at the end of September

2021: Revenue - $20.25 billion, profit - $2.09 billion

At the end of 2021, BD raised $20.25 billion, which is 18.3% more than a year earlier. The BD Medical division registered a 9.2% growth in turnover, up to $9.48 billion. Most of the sales in this division fell on syringes and other solutions for the introduction of drugs: revenue in this segment exceeded $4 billion, rising by 14.1% compared to a year ago.

Sales of products for diabetics increased by 7%, to $1.16 billion. In the direction of porcelain pharmaceutical systems, a rise of 15.2% was recorded, to $1.83 billion.

The BD Life Sciences direction, which develops solutions for the collection and safe transportation of diagnostic samples, tools for detecting infections, products for clinical research, completed 2021 fiscal with an increase in sales by 39.7%, to $6.53 billion.

In the division for the production of products for surgical operations, as well as for urology and the treatment of critical situations, annual revenue was equal to $4.24 billion, which is 12.7% more than a year earlier.

In fiscal 2021, the company earned a total of $9.28 billion outside the United States, which is a quarter higher than the result of the previous year. In the American market, the revenues of the manufacturer of medical devices did not grow so much - by 12.9%, to $10.97 billion.

BD's net profit in 2021 amounted to $2.09 billion, an increase of 139.4% compared to the previous year.

Becton Dickinson also reports that the company spent about $1.2 billion on research and development over the year. The amount of capital expenditures was at the same level.

One of the main drivers of the company's financial recovery was the COVID-19 coronavirus pandemic. The company earned more than $1 billion on solutions for diagnosing this virus, and also increased the implementation of infusion systems.^[1]

History

2023

Recall of 1 million defective infusion pumps that inject too much or little medication

On December 1, 2023, the U.S. Food and Drug Administration (FDA) announced the recall of Becton Dickinson infusion pumps due to compatibility issues with Cardinal Health Monoject syringes. When using this equipment, the introduction of an incorrect volume of drugs may be observed, which poses a threat to the health and life of patients. Read more here.

Becton Dickinson sells surgical instrument business to Steris

On June 21, 2023, Becton Dickinson announced the sale of its surgical instrumentation development unit to the Steris group. The transaction value was $540 million.

The perimeter of the transaction included laparoscopic tools V. Mueller and Snowden-Spencer, Genesis sterilization containers, as well as three production facilities located in St. Louis (USA), Cleveland (USA) and Tutlingen (Germany). About 360 staff developing the surgical platform will move to Steris once the deal is completed, which is expected to be completed before the end of 2023.

The decision to sell the platform was made as part of a strategy to "simplify" Becton Dickinson until 2025. The plan aims to optimize the company's product portfolio and production network while supporting revenue growth and market expansion.

This deal is driving the further development of Becton Dickinson's segment focused on high-growth end markets, "said Becton Dickinson Intervention Technology Segment President Rick Bird.

The signed final agreement between Becton Dickinson and Steris includes assets with annual income of about $170 million. Becton Dickinson reported that if the transaction is completed, as expected, the impact of the sale on adjusted earnings per share will be insignificant. More information on the agreement, according to Becton Dickinson officials, will be provided during a conference call on earnings for the third quarter of fiscal 2023.

As of June 2023, Steris is a global provider of products and services supporting patient care with a focus on infection prevention. With global sales of $5 billion. The company has more than 17 thousand employees around the world working together to supply a wide range of products and services for the prevention of infections and other procedures. Becton Dickinson's surgical toolkit platform complements the Steris segment and will allow them to better meet the needs of hospitals and surgical centers for products and services.^[2]

2022

Becton Dickinson admits holes in cervical research device

On October 4, 2022, Becton Dickinson (BD) reported the discovery of a dangerous vulnerability in a tool used to analyze cervical cytology samples. Read more here.

Becton Dickinson recalls tens of thousands of defective drug delivery devices and needles

In mid-August 2022, Becton Dickinson announced the recall of a number of products used to deliver fluids and medicines during resuscitation and rescue procedures due to problems that could lead to the death of patients. The company determined that insufficient polymerization of the adhesive was the cause of the problems. Read more here.

Purchase of a cloud developer for pharmacies for $93 million

In early August 2022, Becton Dickinson announced the purchase of MedKeeper to continue the promotion of pharmacy technology that began with the purchase of Parata Systems. The deal will add cloud-based pharmacy management apps to Becton Dickinson's technology portfolio to support prescription drug preparation. Read more here.

Purchase of a developer of solutions for automating the operation of pharmacies for $1.52

On June 6, 2022, medical device maker Becton Dickinson announced that it would acquire Parata Systems for $1.52 billion, expanding its business in the pharmacy automation sector. The deal is expected to close by the end of the first half of 2023. Read more here.

Completion of the division of the diabetes division into a separate public company

The company Embecta Corp. (embecta) on April 5, 2022 announced Zdrav.Expert the completion of the separation from Becton Dickinson and the start of work in the status of an independent public company specializing in, diabetes treatment as well as going public under the NASDAQ ticker symbol EMBC. More. here

2021

Purchase of home tests developer for infections Scanwell Health

On December 21, 2021, Becton Dickinson announced the completion of the acquisition of Scanwell Health, a home medical test company using smartphones. The financial terms of the deal were not disclosed. Read more here.

Purchase of the developer of self-adhesive surgical sealing films Tissuemed

On December 9, 2021, Becton Dickinson announced the acquisition of self-adhesive surgical sealing films developer Tensuemed. The purchase aims to expand global offerings for surgeons outside the United States through the company's core product, Tissuepatch. The amount of the transaction was not disclosed. Read more here.

Purchase of varicose varicose veins technology developer Venclose

In early December 2021, Becton & Dickinson announced the purchase of Venclose for an undisclosed amount. This deal brings Becton & Dickinson to a new varicose vein treatment market. Read more here.

Launch of new syringe and needle production

On October 7, 2021, Becton Dickinson announced an increase in production capacity and internal supplies of syringes and needles. All disposable syringes are in contact with body fluids, therefore, they automatically become a source of epidemiological danger and after use they go into the category of medical waste, therefore, with a large population at one point, it is necessary to have the necessary production to create new medical products.

Becton Dickinson's new syringe and needle lines, located in Franklin Lakes, New Jersey, which were completed within an accelerated timeframe, are Becton Dickinson's partnership with the Assistant Secretary of Health and Human Services (HHS) for Preparedness and Response (ASPR).

In July 2020, ASPR's Office for Advanced Biomedical Research and Development (BARDA) allocated $42 million as part of a $70 million project to expand operations and production lines at Becton Dickinson in Holdreg, Nebraska.

According to a press release, the new lines are an important milestone in production, as the flu vaccination season begins in the United States, and efforts are underway to vaccinate against COVID-19. As of October 8, 2021, Becton Dickinson has provided several hundred million injection devices for the federal campaign, the company itself announced.

As the fight against COVID-19 continues, we are committed to ensuring the uninterrupted supply of the country with these most important injection devices! Our teams have been working tirelessly, since the beginning of the pandemic, to provide all our customers, including the US government, with the necessary materials to vaccinate against this virus, while addressing routine preventive health care tasks such as seasonal influenza, said Becton Dickinson President Rick Byrd

Becton Dickinson previously announced plans to invest $1.2 billion through 2025 to expand manufacturing capacity and technology for pre-filled syringes and advanced drug delivery systems, in addition to the latest increase in production.

Domestic production has proven critical for a rapid and effective response to this pandemic. Taking measures to increase production capacity in the United States will allow us to meet the needs of patients and medical professionals, as well as create valuable jobs in the United States, "said Dawn O'Connell, Assistant Secretary of Health for Preparedness and Response.

He also noted that the domestic production of Becton Dickinson provides a powerful impetus for vaccination in the United States, since people's lives are at stake.^[3]

Separate the diabetes division into a separate company

On May 25, 2021, Becton Dickinson (BD) announced to Zdrav.Expert the separation of one of its BD Diabetes Care divisions into a separate public company. Read more here.

2020

Decrease in revenue to $17.12 billion, profit - to $874 million

BD's revenue in 2020 amounted to $17.12 billion, slightly falling short of the one-year-old figure of $17.29 billion.

In the division responsible for the production of medical equipment, the annual turnover decreased from $9.06 billion to $8.68 billion. Most of this amount of $3.56 billion fell on technologies for the introduction of drugs. In 2019, sales here amounted to $3.85 billion.

Sales of technology for the treatment of diabetes decreased from $1.11 billion to $1.08 billion. Deliveries of pharmaceutical systems brought the vendor $1.59 billion in revenue, which exceeds the result in 2019 of $1.47 billion.

The BD Life Sciences line, which develops solutions for the collection and safe transportation of diagnostic samples, tools for detecting infections, products for clinical research, registered revenue growth in 2020 to $4.68 billion from $4.3 billion in 2019. In this division, sales of diagnostic systems increased from $1.55 billion to $2.05 billion.

In the structure of BD Interventional (equipment for endovascular surgery, when access to the affected organ is carried out through the vessels), sales in 2020 amounted to $3.8 billion, including $1.1 billion each from the sale of technologies for surgery, urology and the treatment of critical situations. Compared to 2019, the turnover in BD Interventional decreased by 3.7%.

BD's revenue in the American market in 2020 amounted to $9.72 billion, which almost exactly corresponds to the indicator of a year ago. In Europe, sales increased from $3.36 billion to $3.48 billion, and in Asia they decreased from $2.73 billion to $2.57 billion.

BD at the end of 2020 earned a net profit of $874 million, while in 2019 such a profit from a manufacturer of medical equipment was measured at $1.23 billion.^[4]

Allocation of $244 million to cover costs associated with the call of defective infusion pumps

In mid-November 2020, Becton Dickinson allocated $244 million to cover future costs associated with the recall of defective Alaris infusion pumps. The company has suspended pump deliveries since early 2020, when regulators demanded a complete fix to the pumps' software. Now these pumps are supplied only to those institutions where emergency medical care is possible. Read more here.

Becton Dickinson to pay $60m to sell defective vaginal implants

At the end of September 2020, it became known that Becton Dickinson will pay $60 million for the sale of defective vaginal implants to a subsidiary of C.R. Bard. The implants were intended to treat weakened muscles and pelvic floor ligaments, but caused thousands of lawsuits. Read more here.

2019

Revenue growth by 8.2% to $17.29 billion thanks to medical equipment

Becton Dickinson (BD) ended fiscal year 2019, which came to an end on September 30, 2019, with revenue of $17.29 billion, up 8.2% from a year earlier. Excluding currency fluctuations, the company's sales increased by 5.1%.

The division overseeing the production of basic medical equipment received revenue of $9.06 billion in 2019, which is 5.2% higher than a year ago.

Sales of technology for the treatment of diabetes increased by 0.5% and exceeded $1.11 billion. In the category of instruments used for the introduction of drugs, annual revenue rose by 5.9% to $3.86 billion. Deliveries of pharmaceutical systems brought the vendor $1.47 billion in revenue, which is 4.8% more than in 2018.

The direction of BD Life Sciences, responsible for solutions for the collection and safe transportation of diagnostic samples, tools for detecting infections, products for clinical research, provided the company with an annual turnover of $4.3 billion. This is slightly less (-0.7%) compared to the 2018 fiscal year. In this division, sales of diagnostic systems increased by 0.7% to $1.55 billion.

In the structure of BD Interventional (equipment for endovascular surgery, when access to the affected organ is carried out through the vessels), revenue increased by 29.3% and reached $3.93 billion.

BD's revenue in the United States for fiscal 2019 amounted to $9.73 billion, an increase of 11% on an annualized basis. In other countries combined, the company received $7.56 billion - 4.8% more compared to the previous year.

Becton Dickinson's fiscal 2019 net income reached $1.22 billion, about four times the one-year-old profit.^[5]

BD equipment fell under Chinese duties

On September 1, 2019, China introduced the first part of additional duties of 10% on American products worth $75 billion. And on December 15, new 5 percent fees will come into force. The duties affected some types of medical equipment, including dialysis devices, orthopedic products and hospital supplies. Read more here.

2018: Revenue growth of 32.2% to $16 billion thanks to endovascular surgery

Becton Dickinson finished the 2018 fiscal year with revenue of almost $16 billion, up 32.2% from a year earlier. Excluding currency fluctuations, the company's sales climbed 5.8%.

By November 2018, Becton Dickinson's operations are divided between three main divisions:

• BD Medical - production of basic medical equipment;

• BD Life Sciences - tools for collecting and safely transporting diagnostic samples, tools for detecting infections, products for clinical research;

• BD Interventional - equipment for endovascular surgery, when access to the affected organ is carried out through the vessels.

The BD Medical division, specializing in the production of basic medical equipment, recorded annual revenue of $8.6 billion, an increase of 16.1%. Sales of systems for diabetics amounted to $1.1 billion, which is slightly more than in 2017. In the segment of devices for the introduction of medicines, revenues increased from $2.8 billion in 2017 to $3.6 billion a year later.

In the structure of BD Life Sciences (tools for collecting and safely transporting diagnostic samples, tools for detecting infections, products for clinical research), there was a turnover of $4.3 billion, which is 8.6% higher than in 2017.

The turnover in the BD Interventional division (equipment for endovascular surgery, when access to the affected organ is carried out through the vessels) exceeded $3 billion, which is four times more than a year earlier. Growth could have been higher had it not been for the losses from hurricanes and the currency factor. Sales of surgical technologies in the division doubled to $1.2 billion. In the category of urology and intensive care, sales of products in the amount of $800 million were recorded.

In the United States, the company still earns more than in other countries. In 2018, the revenue of the manufacturer of medical equipment in the American market amounted to $8.8 billion, which is 34.8% higher than a year ago. At the foreign level, the company raised $7.2 billion, which is 29.1% more than in 2017.

It follows from the report that in 2018, Becton Dickinson paid $1.2 billion in debts and made a net profit of $311 million, which is 3.5 times less than a year ago.^[6]

2017

Sales fall as ventilation products are ditched

In 2017, Becton Dickinson's revenue amounted to $12.1 billion, down 3.1% from $12.5 billion a year ago. Net profit increased by 12.6% - from $976 million to $1.1 billion.

The American company still earns more in its homeland than abroad. In 2017, the revenue of a medical device manufacturer in the United States reached $6.5 billion, down 5.6% compared to 2016. Revenues in all other countries combined remained practically unchanged and remained at the level of $5.6 billion.

Becton Dickinson's sales fell due to a branch of the Respiratory Solutions division (ventilation and respiratory support products). It transferred to Vyaire Medical, a joint venture with Apax Partners, with annual revenues of more than $800 million. 49.9 percent of this business remained with Becton Dickinson, but the results of Vyaire Medical's operations are not included in the company's statements.

Excluding restructuring related to Respiratory Solutions and currency fluctuations, Becton Dickinson's consolidated revenue in 2017 increased by 4.5%, and international revenues increased by 6.2%, in the United States - by 3%.

The annual revenue of the medical technology division of BD Medical reached $8.1 billion, down 6.4% year-on-year. The reason for the decline is the same - the branch of Respiratory Solutions. The company's revenues in the market of products for diabetes patients exceeded $1 billion, an increase of 3.3% compared to 2016.

In the direction of BD Life Sciences (tools for collecting and safely transporting diagnostic samples, tools for detecting infections, products for clinical research), sales were registered at $4 billion, which is 4.2% more than a year earlier. This rise has provided high financial performance in the fields of biological sciences, diagnostic and preanalytic systems.^[7]

Buying Bard for $24 billion

On April 23, 2017, Becton Dickinson announced the purchase of medical supplies manufacturer Bard for $24 billion. The acquisition will be paid from the buyer's own funds, as well as his shares. Read more here.

2016

Profit growth of 40% to $976 million

In early November 2016, Becton Dickinson and Co. (BD) published a report on activities in fiscal year 2016. Both the company's profits and revenue have grown significantly.

For the 12-month reporting period closed on September 30, 2016, BD sales amounted to $12.5 billion, which is 21.4% more than a year earlier. Net income increased 40.5% to $976 million.

Turnover in the medical unit increased by 34%, reaching $8.7 billion, which was facilitated by strong demand for pharmaceutical systems, solutions for diabetics and devices for the introduction of drugs. The unit responsible for projects in the field of biomedical sciences recorded revenue at the level of a year ago - about $3.8 billion.

The largest revenues of BD are brought by procedural and drug solutions, the sales of which in 2016 amounted to $3.4 billion, which is 20% more than a year earlier. Revenue from the sale of products that provide assistance to patients with diabetes mellitus exceeded $1 billion. Sales of diagnostic systems amounted to $1.3 billion, which is approximately equal to the level of 2015 of the financial year.

Most of BD's turnover falls on developed markets, which in 2016 brought the company about $10.6 billion in revenue. The share of developing countries to which the vendor includes Russia amounted to $1.9 billion. The Chinese market provided BD with an income of $663 million.

It is worth noting that in July-September 2016, BD's net profit decreased by almost 10 times compared to the same period of the previous year, which is largely due to the spending of $328 million on restructuring. Excluding these and some other one-time costs, there was so-called adjusted earnings of $2.12 per share, while analysts polled by Thomson Reuters expected a figure of $2.08 per share.

At the end of fiscal 2017, BD expects adjusted earnings in the range of $9.62 to $9.72 per share. Wall Street forecast is $8.56 per security.^[8]

Closure of the plant for the production of systems for intravenous infusions

At the end of November 2016, it became known about the closure of one of the Becton Dickinson and Co. (BD) and the subsequent reduction of about 120 jobs. Information about this was disseminated by The News & Observer.

According to him, BD stops the work of an enterprise for the manufacture of systems for intravenous infusions in the city of Creedmore (North Carolina, USA). After the factory is closed, the assembly of these products will be transferred to facilities in Tijuana and Nogales (Mexico), and the work on forming products will be transferred to an enterprise in Sandy (Utah, USA).

The News & Observer reports that BD's decision to abolish the Creedmore plant is not related to its performance, but is made in connection with a strategy aimed at overall improving the efficiency of the company. The manufacturer confirmed to the publication information about the closure of the factory and layoffs.

Decisions like this, which affect our employees, have never been easy and have not been rash, "said BD spokesman Troy Kirkpatrick. - However, we cannot leave some unused production facilities in our plants.

Staff at the Creedmore facility were informed of the closure of the facility back in July 2016. Job cuts there will last from April to March 2018.

BD received this plant together with CareFusion, bought in 2014 for $12.2 billion. North Carolina's BD staff numbers 475, nearly half of whom work at the Research Triangle Park facility.

In September 2016, BD announced plans to spend $40.4 million on the purchase of new production equipment at a facility in the Irish city of Drogheda. With these investments, the company will create 20 additional jobs and launch two new production lines for the production of syringes and components for insulin administration.^[9]

Investment in one of the largest factories in the United States

On August 18, 2016, Becton Dickinson (BD) announced plans to invest in one of its largest manufacturing sites. We are talking about an object in Sandy (Utah USA ,).

At this enterprise with an area of ​ ​ more than 51 thousand square meters, the company manufactures intravenous catheters, blood collection devices, surgical instruments and other products that are sold in 96 countries of the world.

The Sandy factory was founded in 1956 by vascular access highway manufacturer Deseret Pharmaceutical, which BD acquired in 1986. This company owns over 200 global patents related to the operation of intravenous catheters. The average term of work of employees at this enterprise is 13 years, by August 2016, about 1200 people work there.

On August 18, 2016, BD reported celebrating the 60th anniversary of the establishment of the Sandy plant. On this occasion, it was decided to invest an additional $20 million in the development of production at this site. This has become part of a broader investment plan involving investments in expanding production facilities around the world and supporting the projected growth of the catheter solutions platform.

Our Sandy facility is one of BD's largest and oldest production sites, "says Tom Polen, president of BD Medical. - We would like to thank our partners for their constantly hard work and dedication in promoting healthcare in Utah and around the world.

The BD report also notes that the Sandy plant was the first facility for the company to use renewable energy sources - this happened in 2008. Four years later, production there became almost waste-free.

2015: Sales Structure by Segment

BD sales by segment in 2015:

Notes