BD (Becton, Dickinson and Company) announced plans to separate its Biosciences and Diagnostic Solutions business into an independent company, aiming to enhance strategic focus and growth opportunities.

The Franklin Lakes, New Jersey-based medical technology firm said the move will allow both entities to pursue tailored investments and capitalize on market-specific growth trends.

Following the separation, BD will operate as a pure-play medtech company — referred to as "New BD" — with a focus on four key segments: medical essentials, connected care, biopharma systems, and interventional solutions.

The remaining Biosciences and Diagnostic Solutions business will become an independent leader in life sciences tools and diagnostics, with a focus on immunology, cancer research, microbiology, and infectious disease diagnostics.

“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,” said Tom Polen, BD’s chairman, CEO, and president. “We believe today’s announcement is an exciting next step in unlocking significant potential value for all our stakeholders.”

In 2024, BD invested over $10 million to upgrade facilities in Connecticut and Nebraska. This funding allowed for the installation of new needle and syringe production lines, one of which is already operational, with additional lines expected to come online in the near future. The company has also hired more than 215 full-time employees to support these manufacturing expansions.

BD plans to further invest $30 million in 2025 to expand IV catheter manufacturing at its plant in Sandy, Utah. This follows a $2 million investment in 2024, which boosted the facility’s output by 40 million units annually.

BD’s board of directors approved the separation plan following a business portfolio review initiated in early 2024. The company said the separation could take various forms, including a spin off, sale, or Reverse Morris Trust transaction, with final details expected by the end of fiscal 2025. The transaction is targeted for completion in fiscal 2026, pending regulatory approvals.

New BD is expected to generate approximately $17.8 billion in fiscal 2024 revenue, with a $70 billion addressable market growing at around 5% annually. The Biosciences and Diagnostic Solutions business is projected to generate $3.4 billion in revenue, with an addressable market of more than $22 billion.

As BD moves forward with the separation, it will continue operating under its BD 2025 strategy, prioritizing innovation, commercial growth, and operational efficiencies. The company has postponed its investor day, originally scheduled for February 26, to focus on the transaction.

In June 2024, the company acquired Edwards Lifesciences' Critical Care product group for $4.2 billion in an effort to enhance its portfolio of smart-connected care solutions, and expand its advanced monitoring technology capabilities.

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