Becton Dickinson to split off diabetes care unit

Becton Dickinson announced on Thursday that it will spin off its diabetes care business into a standalone company, with the split expected to complete in the first half of 2022. Tom Polen, who was recently appointed CEO of Becton Dickinson, said the separation will allow the diabetes unit "to advance a more focused strategy and capital allocation policy to further advance innovation and growth specific to its unique market."

According to Becton Dickinson, its diabetes care business is the leading producer of diabetes injection devices, producing approximately 8 billion injection devices annually. In fiscal year 2020, the unit generated revenues of nearly $1.1 billion, with 48% of this generated outside of the US, including 17% of sales from emerging markets. The spun off business will have manufacturing sites in the US, Ireland and China, and is expected to have offices in New Jersey and Massachusetts.

The diabetes company will be led by Devdatt Kurdikar, who joined Becton Dickinson in February as its worldwide president of diabetes care, having previously served as CEO of Cardiac Science. Kurdikar noted that the standalone business "will have the flexibility to invest in the right areas to become a more nimble, agile and innovative company in the rapidly growing diabetes space."

Investing in smart devices, robotics, AI

Meanwhile, Polen suggested that splitting off the diabetes care unit will allow the remaining company "to strengthen its growth profile," allowing "greater investment focus on our other core businesses and high-growth opportunities." Becton Dickinson said it will continue to increase "its R&D investments and strengthen its pipeline across three innovation themes, which include applying smart devices, robotics, analytics and artificial intelligence to improve care processes; enabling new care settings to enhance patient experience and lower costs; and investing to improve diagnosis and treatment of chronic disease."

For related analysis, see Wider View: BD’s newco brings new buyer to diabetes landscape.

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