Becton Dickinson

Becton Dickinson
CEO: Vincent Forlenza
Based: Franklin Lakes, NJ
2015 sales: $9.17 billion
2014 sales: $7.27 billion
Change: 26%

Becton Dickinson ($BD) wanted to shift gears with its $12.2 billion deal for CareFusion in 2014, and at least so far, the company seems headed in a new direction. Over the past year, the company has focused on dealmaking and R&D to expand its offerings and build up its presence in key markets.

BD acquired CareFusion to tap into the $20 billion global medication-management industry, CEO Vincent Forlenza said at the time. The deal also helps move the devicemaker from "a product-focused company to a customer-centric provider of innovative healthcare solutions with leading scale across the medication management value chain and expanded solutions for patient safety," Forlenza said. With $250 million in synergies by 2018 on the horizon, BD is eager to play.

In March 2015, BD snatched up San Diego-based Crisi Medical Systems for an undisclosed sum to get the startup's real-time, wireless manual IV drug data. The deal opened a door to the injection safety market and was meant to "significantly enhance" the company's end-to-end IV medication safety offerings, BD Medical Segment President Tom Polen said at the time.

BD's diabetes R&D has also played a large role in its recent efforts. In May 2015, the company chalked up a milestone after the FDA cleared a new insulin infusion set that BD developed with the Juvenile Diabetes Research Foundation and the Helmsley Charitable Trust.

A month later, BD said it would team up with rival Medtronic ($MDT) to market the insulin pump infusion set with FlowSmart technology. "This technology is an extension of BD's long-standing commitment to deliver injection solutions, and builds on previous BD research that has advanced the science and understanding of insulin delivery as well as patient comfort," Kenneth Miller, worldwide president of BD's medical-diabetes care unit, said at the time.

In July, the company cut the ribbon on a new diabetes R&D facility. The Andover, MA-based center "will help increase the rate of innovation and enable us to provide therapeutic advances in the diabetes care sector," BD CMO and EVP of R&D Ellen Strahlman said at the time.

The company has also focused on cutting costs and shaving off poorly performing units to deliver gains. In September, the company cut 95 employees from CareFusion's San Diego headquarters.

Earlier this year, BD spun off its poorly performing Respiratory Solutions business in a $500 million JV with Apax Partners. The company expected to sell the unit, which it picked up through its CareFusion deal, for about $1.5 billion to $2 billion. But declining revenues translated into a lower deal valuation, so the company changed its course. BD expects to close the transaction in late fiscal 2016 or early fiscal 2017.

-- Emily Wasserman (email | Twitter)

For more:
BD forms $500M JV with private equity firm Apax to house ailing respiratory biz
California cutbacks: BD cuts 95 at CareFusion; Medtronic to cut 21 at distribution facility
BD opens new diabetes R&D center to develop, manufacture next-gen products
Medtronic, BD to collaborate on diabetes infusion set featuring enhanced insulin delivery
FDA clears BD insulin infusion set developed with diabetes patient advocacy groups
To complement CareFusion deal, BD buys startup with real-time, wireless manual IV drug data

Becton Dickinson