Embecta Announces Separation from Becton Dickinson and Plans Nasdaq Listing under Ticker EMBC

| Edited by: Dongtai

The global medical device market has ushered in a new industry landscape. Amidst the competition, maintaining core competitiveness, positioning in new tracks, and the allocation of corporate resources have all become crucial factors influencing the future map of enterprises. In 2022, the pace of corporate spin-offs and mergers and acquisitions continues.

Completed the split on April 1 and will set up a factory in China.

Recently, Becton Dickinson (BD) announced that its board of directors has officially approved the spin-off plan for the diabetes care business, and the new company will be named Embecta. The spin-off will take place on April 1, 2022. After the completion of the spin-off, Embecta will become an independent publicly traded company focused on diabetes management, and BD will not retain any ownership interest.

BD also announced the proportional distribution of all issued and outstanding shares of embecta common stock to BD shareholders. Embecta has applied for the listing of its common stock on Nasdaq under the ticker symbol EMBC, with its shares expected to begin trading in the "regular way" on April 1.

The company believes that separating the diabetes care business from BD's other operations aligns with BD's growth strategy and helps strengthen its focus on core innovation priorities. This separation will also enhance Embecta's ability to attract capital investment, recruit talent, and allocate resources and efforts toward its unique business development, innovation, and product development initiatives, driving future growth and ultimately benefiting more diabetes patients worldwide.

In May 2021, BD announced its intention to spin off its Diabetes Care business as an independent publicly traded company to BD shareholders. In December 2021, BD announced that the standalone company post-separation would be named embecta. Devdatt Kurdikar, Worldwide President of BD’s Diabetes Care business, will serve as CEO of embecta upon completion of the spinoff.

BD stated that the new name "Embecta" represents the company's commitment to helping diabetes patients in the future while paying tribute to its former parent company. The prefix "em-" refers to empathy for diabetes patients, and "bect" embeds a part of the Becton Dickinson name into the name of BD’s spin-off company. Embecta's logo integrates two bold curves forming a circle around a point, symbolizing collaboration between people.

It is reported that after the split, the company will have manufacturing bases in the United States, Ireland, and China, and offices in New Jersey and Massachusetts.

Devdatt Kurdikar, Global President of Diabetes Care, stated: "The board's approval is a significant milestone, and our team is eager to build on nearly 100 years of tradition to innovate and help people with diabetes lead better lives."

Split Business Growth Rate Lower Than Overall

BD Medical, registered and established in 1906, currently has three major business divisions. BD Medical offers medical technologies and devices for drug delivery, drug management, diabetes care, and pharmaceutical systems. BD Life Sciences primarily provides products for the safe collection and transport of diagnostic specimens, as well as instruments and reagent systems for detecting various infectious diseases, healthcare-associated infections, and cancer. BD Interventional delivers products specialized in vascular, urology, oncology, and surgical fields.

On February 3, BD released its financial results for the first quarter of fiscal year 2022. The report showed that in the three months ended December 31, 2021, the company's total revenue was $4.995 billion, a year-on-year decrease of 6%. Revenue from the diabetes care business was $289 million, a year-on-year increase of 1.3%.

The company's 2021 financial report shows that the net income attributable to common shareholders for the 2021 fiscal year was $2.002 billion, increasing by 161.1% year-on-year. The total annual revenue was $20.248 billion, increasing by 18.3% year-on-year. Among this, the revenue from the diabetes care business was $1.16 billion, increasing by 7% year-on-year.

BD Medical Has a Century-Long Development History in Diabetes Care. In 1924, the company launched the world's first dedicated insulin syringe and remains a leading producer of diabetes injection devices to this day. It is reported that BD produces approximately 8 billion injection devices annually, serving around 30 million patients worldwide.

Currently, the demand for chronic disease care remains unmet, and there is still significant room for growth in the diabetes care sector. According to data from the International Diabetes Federation, it is estimated that there are 463 million people with diabetes worldwide, and this number is expected to increase to 700 million by 2045.

Last May, BD Chairman, CEO and President Tom Polen stated that the spin-off would enable BD to strengthen its growth momentum and focus more investment on other core businesses and high-growth opportunities. As an independent publicly traded company, the new company is expected to better leverage its leadership in insulin delivery to provide important innovative solutions for a large and growing number of diabetes patients worldwide.

BD Management Predicts New Company to Gain Financial Flexibility and Talent Advantages