Becton, Dickinson and Company (BDX) Citi’s 2025 Medtech and Life Sciences Access Day summary

Strategic review and separation plans

• Announced a review and planned separation of the Biosciences division to unlock value and focus on MedTech growth, with multiple options including spin, RMT, or sale being considered.

• Decision driven by strong MedTech growth, margin acceleration, and desire to maximize value for both MedTech and Life Science assets.

• Timeline targets a definitive transaction announcement by summer, with formal closing expected in the first half of 2026.

NewCo (MedTech-focused) profile and growth drivers

• NewCo will have less than 50% of revenue from Medical Essentials, with significant growth in biologic drug delivery, interventional, and connected care platforms.

• High recurring revenue (over 90%) and strong mid-single digit growth, with Interventional and Biopharma now over 40% of business in high-growth categories.

• Major growth platforms include PureWick, wearable injectors for home-based therapies, and regenerative medicine for surgery.

• Connected Care segment features over 3 million smart devices and upcoming launches like AI-enabled Pyxis Pro and expanded BD Connected platform.

Financial performance and operational excellence

• Q1 over-delivered on revenue, margin, and earnings, with 370 basis points gross margin improvement and double-digit operating income growth.

• BD Excellence program driving significant margin expansion through Kaizen events, with plans to double continuous improvement initiatives.

• Cash flow growing in the teens, supporting disciplined capital deployment in tuck-in M&A and share buybacks.