BD Reports Strong Q2 Fiscal 2024 Results with Broad-Based Growth Across All Segments

May 05, 2024 00:29 CST Updated 00:29

BD

Medical Device R&D Manufacturer, Distributor

May 3, 2024, BD (NYSE: BDX) Released the latest quarterly report:Sales for the second quarter ended March 31, 2024 were$5.045 billion (approximately36.526 billionRMB), year-on-year growth4.6%；PublicCompany ReportProfit of $537 million (approximately 3.888 billion RMB), year-on-year growth22.6%, overall performance exceeded market expectations.

# Status of Each Pipeline

All departments of BD achieved year-on-year sales growth.

1. The medical sector leads with sales exceeding $2.4 billion (up 3.8%).

BD Medical includes the Medication Delivery Solutions (MDS), Medication Management Solutions (MMS), and Pharmaceutical Systems (PS) business units. The growth in BD Medical's revenue is driven byMMSAndMDSDriven.

MDS Quarterly Revenue Reaches $1.107 Billion, Up 3.5% Year-over-Year; This Performance is Driven by Growth Across the Entire Portfolio, Including Vascular Access Management, Subcutaneous Injection Products, and Non-Dedicated Infusion Sets, Partially Offset by Dynamic Changes in the Chinese Market;

MMS Quarterly Revenue of $772 Million, Up 6.5% Year-over-Year; This performance was driven by double-digit growth in the infusion business, attributable to the BD Alaris™ Infusion System reaching the licensed version of the device and increased utilization of dedicated infusion sets.

Key Points Retrospect:

BD Points Out That After the FDA Issued a Warning About Injection Devices Produced in China, the Company is Increasing Its Syringe Production in the United States. (For more details: Last November, the FDA warned that plastic syringes made in China could experience device malfunctions. Malfunctions may include leakage, breakage, and other issues. The FDA reported receiving information regarding quality problems associated with several Chinese syringe manufacturers. As a result, BD has decided to increase production in the U.S.)Nebraska and Connecticut PlantsOutput, to ensure the continuity of patient care)
New research data released by the Medication Management Solutions business unit shows that the use of BD Pyxis™ MedBank™ intelligent electronic medication cabinets in long-term care facilities can improve clinical workflows, operational efficiency, and financial performance.

2. Interventional Business (USD 1.29 billion, increased by 9%)

BD Interventional Segment includes Surgical (SURG), Peripheral Intervention (PI), and Urology & Critical Care (UCC) business units. The organic revenue growth of BD Interventional was driven by the performance across the segment.

SURG Business Quarterly Revenue of $379 Million, Down 0.3% Year-over-Year; Double-Digit Growth Driven by the Continued Global Adoption of Phasix™ Absorbable Hernia Scaffold and Strong Demand and Customer Orders for ChloraPrep™ Infection Prevention Products in the U.S. The segment’s performance also reflects the impact of the divestiture of the surgical instrumentation platform.Review:$540 Million! Medical Giant Sells This Business）。

PI Business Quarterly Revenue of $489 Million, a Year-over-Year Increase of 5%; the performance was driven by the global adoption of the Rotarex™ Atherectomy System and Venclose™ Radiofrequency Ablation System, which propelled double-digit growth in the peripheral vascular disease product portfolio.

UCC Business Quarterly Revenue of $424 Million, Up 26.7% Year-over-Year; Performance Driven by PureWick™ Franchise Licensing Income and Strong Double-Digit Growth Fueled by Continued Adoption in Acute Care and Home Care Settings.

Key Points Retrospect:

PI Division Launches "AGILITY" Investigational Device Exemption (IDE) Study to Evaluate the Safety and Effectiveness of BD's Vascular Covered Stent, Providing Interventional Physicians with an Important New Solution for Treating Peripheral Artery Disease.
BD Named One of America's Most Innovative Companies in 2024 by Fortune Magazine and a Best Employer for Benefits Excellence by the Health Business Group

3. Life Sciences Business (USD 1.3 billion, increased by 2.2%)

BD Life Sciences comprises the Integrated Diagnostic Solutions (IDS) and Biosciences (BDB) business units. The revenue growth of BD Life Sciences is driven by IDS.

IDS Quarterly Revenue Reached $927 Million, a Year-on-Year Increase of 4.4%;This achievement is attributed to BD.High single-digit growth in the microbiology platform (including blood culture, tuberculosis, and ID/AST) and the BD Vacutainer™ product portfolio;

BDB's quarterly revenue was $377 million, a year-on-year decrease of 2.3%; this performance was mainly affected by the decline in revenue from research and clinical solutions instruments, butThanks toBDThe growing installed base of facslric™ Clinical Cell Analyzers and FACSDuet™ Sample Preparation Systems, forThe high single-digit growth in clinical reagents partially offset the aforementioned decline.

Key Points Retrospective:

BD Biosciences Announces Global Launch of Three- and Four-Laser Systems in the BD FACSDiscover™ S8 Cell Sorter Family, Complementing the Five-Laser Instrument Launched Last Year, Offering Scientists More Access, Choice, and Flexibility to Integrate Real-Time Imaging and Spectral Cell Sorting Technologies in Their Laboratories.
Integrated Diagnostic Solutions Business Unit Announces Strategic Partnership with Camtech Health to Increase Access to Cervical Cancer Screening in Singapore Through the First Program in Singapore Offering At-Home Self-Sampling for BD Onclarity™ HPV Testing.

# Analysis by Region

The United States contributed $2.906 billion this quarter, and the international market contributed $2.139 billion, with a trend similar to last year.

# Executive Evaluation and Fiscal Year Outlook

BD forecasts full-year revenue between $20.1 billion and $20.3 billion. The company raised its adjusted earnings per share guidance to a range of $12.95 to $13.15, up from the prior outlook of $12.82 to $13.06.

BD Chairman, CEO and President Tom Polen said: "The second-quarter results reflect the strength of our strategic actions and diversified portfolio."Our focus on BD excellence and execution drove strong operating margin and cash flow this quarter."We are entering the second half of fiscal year 2024 with continued momentum, which gives us confidence to once again raise our earnings expectations for fiscal year 2024, while delivering on our BD commitments for 2025."”

# About BD

Becton, Dickinson and Company (BD) was founded in New York in 1897, with its headquarters located in Franklin Lakes, New Jersey, USA.

The company advances clinical therapies for patients and clinical processes for healthcare providers by developing innovative technologies, services and solutions to support the frontline workers in healthcare. BD has offices in nearly every country around the world with more than 75,000 employees globally and partners with organizations around the world to address some of the most challenging global health issues.

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Editor-in-Chief | Zhao Qing Reviewed by | Yi He