Becton, Dickinson and Company (BDX) 2024 Wells Fargo Healthcare Conference summary

Strategic priorities and growth framework

• Focus remains on BD 2025 framework, emphasizing growth in faster-growing markets and healthcare automation, targeting $7B in automation and informatics by 2030.

• Innovation agenda includes both organic development and inorganic tuck-ins, with continued expansion into new care settings and chronic disease management.

• Simplification initiatives include SKU reduction, plant consolidation (targeting 20% reduction), and the BD Excellence program, which has trained 10,000+ associates and reduced waste by 30%.

• BD Excellence and Kaizen methodologies are expanding beyond operations into commercial and R&D, aiming to accelerate product launches and improve efficiency.

• Portfolio management is ongoing, with regular evaluation of business fit and shareholder value maximization.

Recent acquisitions and innovation

• Closed the Critical Care acquisition, integrating advanced patient monitoring and AI capabilities, with prototypes already connecting Alaris pumps and Edwards monitors.

• Vision for autonomous, closed-loop systems in critical care, leveraging AI to predict patient events and adjust therapy in real time.

• Analyst Day next year will provide more details on development timelines for these innovations.

Financial performance and outlook

• Q4 sales growth acceleration driven by Alaris and strong performance in procedure-based, consumables, and urology businesses.

• Alaris has returned to a $400M+ annual run rate, with no supply or staffing constraints limiting further growth.

• Margin expansion is expected to continue, with gross margin improvements from plant consolidation and BD Excellence initiatives; operating margin to exceed 25% in Q4 and FY 2025.

• EPS growth target of 10% for FY 2025, implying ~$14.40 EPS, with commitment to double-digit EPS growth beyond 2025.