On Wednesday, Becton, Dickinson and Company (NYSE:BDX) authorized 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.

Following the separation, New BD will be a pure-play medical technology company. It expects to drive concentrated investments in high-impact R&D and disciplined capital allocation, including growth-accretive M&A.

Also Read: Activist Starboard Value Pushes Becton Dickinson To Divest Life Sciences Unit

Medical Essentials includes BD’s Medication Delivery Solutions and Specimen Management businesses, which manufacture products such as IV catheters, PICCS, flush and other essential vascular access and management solutions, blood collection solutions, syringes, and advanced needle technologies.

Connected Care includes BD’s Medication Management Solutions and Advanced Patient Monitoring businesses with smart devices that use automation, artificial intelligence, and analytics.

BioPharma Systems provides biologic drug delivery, development, and manufacturing of drug delivery devices for the pharmaceutical industry.

Interventional, which includes BD’s Urology & Critical Care, Peripheral Intervention, and Surgery businesses, caters to conditions such as urinary incontinence, peripheral vascular disease, cancer, and hernias.

After the separation, the New BD is expected to have fiscal 2024 revenue of approximately $17.8 billion. Biosciences and Diagnostic Solutions is expected to have approximately $3.4 billion in fiscal 2024 revenue.

The company expects to announce more specifics on the separation plans by the end of fiscal 2025 and intends to target completion of the transaction in fiscal 2026.

In April 2022, Becton Dickinson spun off Embecta Inc (NYSE:EMBC), a diabetes device maker, into a standalone entity.

In November, the company announced that it had decided to discontinue its insulin patch pump program and would initiate a restructuring plan.

In July, Embecta, a manufacturer of disposable insulin pen needles and syringes, said it is considering a potential sale following a significant drop in its share price since being spun off from health tech giant Becton, Dickinson.

Concurrently, BD reported first-quarter 2025 adjusted EPS of $3.43 beating the consensus of $2.98. The company’s sales increased 9.8% year-over-year to $5.17 billion, beating the consensus of $5.1 billion.

Guidance: BD updated its fiscal year 2025 revenue guidance from $21.9 billion-$22.1 billion to $21.7 billion-$21.9 billion compared to the consensus of $21.93 billion.

The company expects adjusted EPS of $14.30-$14.60, up from $14.25-$14.60 compared to the consensus of $14.40.

Price Action: BDX stock is down 3.88% at $235.56 at the last check on Thursday.

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