While financial results were reported for the second fiscal quarter of the year, in which revenue increased more than 15% to $ 4.9 billion, Becton Dickinson and Co. (NYSE: BDX) also outlined its plans to spin off its diabetes-focused segment.
Shared highlights: The split is expected to be completed in the first half of 2022. Thereafter, the segment will become a completely separate, publicly traded company, tentatively referred to as “NewCo”.
The independent company will be based in New Jersey and Massachusetts with manufacturing facilities in the US, Ireland and China.
The new company will be led by CEO Devdatt Kurdikar, who joined BD in February as President of BD Diabetes Care, and CFO Jacob Elguicze, who joined BD this month and is former Treasurer and Head of Investor Relations at Teleflex.
The new company will aim to build on BD’s established presence in the diabetes care market, which reported fiscal 2020 sales of nearly $ 1.1 billion.
Numbers: BD currently produces around 8 billion injection devices annually for 30 million patients, giving NewCo plenty of room to expand operations to around 463 million people with diabetes worldwide.
BD said the separation of its diabetes business will give it the space it needs to gather the resources and leadership skills needed to meet the growing global demand for insulin delivery devices.
“The spin-off will allow BD to strengthen its growth profile, enable a greater investment focus on our other core businesses and growth opportunities, and create greater impact for our customers and patients,” said BD CEO Tom Poland.
“As an independent public company, we believe that NewCo will be better positioned to leverage its leadership position in insulin delivery and drive key, innovative solutions to the large and growing number of people with diabetes worldwide,” added Poland.
Price action: BDX stocks fell 3.99% to $ 239.8 during market hours on the last Check Thursday.
© 2021 Benzinga.com. Benzinga does not offer investment advice. All rights reserved.
