BD (Becton, Dickinson and Company), Franklin Lakes, N.J., announced its board of directors has unanimously authorized management to proceed with a plan to spin off the company’s diabetes care business as an independent, publicly traded company (“NewCo”).
“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,” says Tom Polen, chairman, CEO, and president of BD. “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. We are proud of BD’s leadership in driving innovation to support people with diabetes and believe this transaction will empower NewCo to advance a more focused strategy and capital allocation policy to further advance innovation and growth specific to its unique market. As a standalone public company, we believe NewCo will be better positioned to leverage its leadership position in insulin delivery to advance vital, innovative solutions to the large and growing number of people living with diabetes worldwide. We believe today’s announcement demonstrates our commitment to maximize long-term value for all stakeholders—including our patients, customers, employees and shareholders.”
The spinoff is expected to be completed in the first half of calendar year 2022.