Becton Dickinson to Spin Out Biosciences and Diagnostic Solutions Business

By LabMedica International staff writers
Posted on 06 Feb 2025

Image: The board of directors has unanimously authorized a plan to separate BD’s Biosciences and Diagnostic Solutions business (Photo courtesy of BD)

Becton, Dickinson and Company (BD, Franklin Lakes, NJ, USA), has announced that its board of directors has unanimously authorized BD management to pursue a plan to separate BD's Biosciences and Diagnostic Solutions business from the rest of BD to enhance strategic focus and growth-oriented investments and capital allocation for both BD and the separated business and enhance value creation for shareholders.

The separation decision was the result of a comprehensive business portfolio evaluation launched by BD in early 2024. The company believes that with the separation, the Biosciences and Diagnostic Solutions business will become a differentiated leader in Life Sciences Tools and Diagnostics. The Biosciences and Diagnostic Solutions business is expected to benefit from enhanced focus and investments as a pure-play Life Sciences Tools and Diagnostics leader. Biosciences is a leader in immunology and cancer research solutions and related clinical diagnostics, including flow cytometry instruments and reagents, and has innovative single-cell multiomics tools. Diagnostic Solutions is a leader in microbiology and infectious disease diagnostics, including molecular diagnostics, cervical cancer screening, microbiology automation and point-of-care offerings.

Both businesses have strong leadership teams with unparalleled commercial, engineering and R&D expertise, and are dedicated to bringing the next generation of high-quality innovations to researchers, clinicians and patients. The company believes that independent of BD, the business will be well-positioned to better meet the needs of research and laboratory customers and accelerate growth through more focused investment and capital allocation within the life sciences sector. As the company pursues this transaction, BD will remain focused on execution and continue to operate the Biosciences and Diagnostic Solutions business and the other BD businesses in alignment with its BD 2025 strategy, including continued investments in commercial growth, innovation, M&A and other initiatives that are part of the company's multi-year strategic operating plans.

"Our BD 2025 strategy has transformed the company into a faster-growing, more profitable organization positioned at the forefront of long-term growth trends in health care, and we believe today's announcement is an exciting next step in unlocking significant potential value for all our stakeholders," said Tom Polen, chairman, CEO and president of BD. "We believe the separation will position New BD as a differentiated MedTech leader and enable optimized investment to accelerate our innovation pipeline and ongoing margin enhancement through BD Excellence to further fund growth. We believe Biosciences and Diagnostic Solutions is expected to deliver substantial value as a pure-play leader in life sciences and will be well-positioned to execute on its unique and compelling solutions and growth opportunities. This transaction is designed to position both businesses to thrive in our respective sectors and deliver value for shareholders."