US-based Becton, Dickinson and Co. (BD) is reportedly considering spinning off its life sciences division, which is estimated to be valued at approximately $30 billion, according to sources cited by Reuters. The move is seen as a strategic effort to potentially boost the company’s stock price.
Exploring Feasibility and Timing
BD is currently working with a consulting team to explore the feasibility of separating the life sciences division. The plan to divest the business unit, which covers bioscience and diagnostic solutions, is expected to be announced at the latest earnings conference on Thursday at the earliest, according to people familiar with the matter.
Performance and Activist Pressure
The consideration comes amid pressure from activist investors and a significant decline in the performance of the life sciences unit following the pandemic. In 2024, the life sciences unit generated $5.2 billion in revenue, marking a 1.1% increase. However, this modest growth still weighed on the overall performance of the group, despite some recovery in performance.
Future Outlook
The potential spin-off of the life sciences division underscores BD’s efforts to streamline its operations and focus on core strengths. By spinning off the unit, BD aims to unlock value and enhance shareholder returns, while positioning the life sciences division for independent growth and innovation.-Fineline Info & Tech
