The diabetes care business currently produces around eight billion diabetes injection devices per year
Medical technology company Becton, Dickinson and Company (BD) is set to spin off its diabetes care business into an independent and publicly-traded company.
The spinoff will result in the creation of two new independent companies with enhanced standalone investment characteristics and optimised product portfolios.
The diabetes care business, which will run as a new publicly traded company, currently produces around eight billion diabetes injection devices per annum.
Last fiscal year, the diabetes care business reported revenues of up to $1.1bn with 48% of revenues generated outside of the US. Around 17% of revenues have been generated from emerging markets.
The business has manufacturing locations in the US, Ireland, and China. The new company is also planning to open offices in New Jersey and Massachusetts.
BD chairman, CEO and president Tom Polen said: “The decision to spin off our Diabetes Care business is part of our active portfolio management and consistent with our BD 2025 strategy to grow, simplify and empower.
“The spinoff will allow BD to strengthen its growth profile, enables a greater investment focus on our other core businesses and high-growth opportunities, and makes a greater impact for our customers and patients.”
BD aims to maintain category positions across its portfolio in the BD Medical, BD Life Sciences and BD Interventional segments, upon the completion of the spinoff.
BD Medical, which currently consists of the diabetes care business, will continue to offer end-to-end medication management solutions such as BD Alaris brand of infusion pumps, BD Pyxis brand of medication and supply dispensing solutions, BD HealthSight data and analytics platforms.
Subject to the satisfaction of customary conditions including final approval from the BD board of directors and regulatory approvals, the spinoff is expected to be completed in the first half of the calendar year 2022.
Perella Weinberg Partners, Morgan Stanley, Wachtell, Lipton, Rosen & Katz, Skadden, Arps, Slate, Meagher & Flom, Baker McKenzie, and PricewaterhouseCoopers are serving as advisors to BD in connection with the deal.
In March this year, BD acquired GSL Solutions, which is involved in the development of smart medication devices for the storage and tracking of controlled substances and patient specific medications.