07.23.08
$6.4 Billion
Edward J. Ludwig, Chairman, President and CEO
John R. Considine, Sr. Exec. VP and CFO
Gary M. Cohen, Exec. VP and President, Medical
William A. Kozy, Exec. VP and President, Diagnostics
David T. Durack, Sr. VP, Corporate Medical Affairs
Scott Bruder, Sr. VP and Chief Technology Officer
For the 2007 fiscal year (ended Sept. 30), Becton Dickinson & Co. continued the steady growth and performance the industry has come to expect from this 110-year-old medical device maker. According to Ed Ludwig, chairman, president and CEO, in the past eight years, BD’s revenue and profit base has more than doubled.
Headquartered in Franklin Lakes, NJ, BD, which is comprised of three major segments (Medical, Diagnostics and Biosciences), has operations in more than 50 countries.
The company bested its 2006 financial performance by 11%. Total revenue for the year was $6.4 billion, compared with $5.7 billion for the prior year. The total reflects an overall estimated 3% favorable impact from foreign currency translation that affected all segments. Income from continuing operations was $856 million, or $3.36 per diluted share, in 2007, as compared with $815 million, or $3.18 per diluted share, in 2006
The Medical segment—the largest slice of the BD revenue pie—reported 10% revenue growth to $3.4 billion. Strong sales in the Medical division’s Pharmaceutical Systems unit continued to significantly contribute to the growth of the segment, the company said, along with the continued global conversion to safety-engineered products. The Pharmaceutical Systems unit grew by 24%, reflecting the increased use of pre-fillable syringes by pharmaceutical companies to market new vaccines and biotech drugs, especially in the United States. Revenue growth in the Medical Surgical Systems unit primarily was driven by the growth in safety-engineered products and pre-filled flush syringes, according to company officials. Sales of safety-engineered products increased 6% in the United States and 30% internationally. For 2008, the company said it expects full-year revenue growth for the Medical division to be about 8%.
The Medical division’s principal product lines include needles, syringes and intravenous catheters for medication delivery; pre-filled IV flush syringes; syringes and pen needles for the self-injection of insulin and other drugs used in the treatment of diabetes; pre-fillable drug delivery devices provided to pharmaceutical companies and sold to end-users as drug/device combinations; surgical blades/scalpels and regional anesthesia needles and trays; critical care monitoring devices; ophthalmic surgical instruments; sharps disposal containers; and home healthcare products such as ACE brand elastic bandages.
For the BD Diagnostics segment, there was revenue growth of 11% to $1.9 billion, which includes $88 million of revenues from TriPath Imaging, a maker of innovative solutions to improve the clinical management of cancer, which was acquired at the end of the first quarter of fiscal 2007 for approximately $350 million. Sales of safety-engineered products rose by 25% internationally and 9% in the United States, due in large part to BD Vacutainer Push Button Blood Collection Set conversion activity, the company said.
Principal products and services for the Diagnostics business include integrated systems for specimen collection; an extensive line of safety-engineered blood collection products and systems; plated media; automated blood culturing systems; molecular testing systems for sexually transmitted diseases and hospital-acquired infections; microorganism identification and drug susceptibility systems; liquid-based cytology systems for cervical cancer screening; and rapid diagnostic assays.
At the beginning of fiscal 2008, BD received FDA clearance for the BD GeneOhm StaphSR assay. According to the company, the new assay is the first test available to rapidly and simultaneously identify two deadly healthcare-associated infections—Staphylococcus aureus and methicillin-resistant Staphylococcus aureus—from patients with positive blood cultures. It will help enable physicians to implement the right treatment quickly and more cost effectively for patients with bloodstream infections.
In June, BD officially opened the GeneOhm manufacturing facility in Québec, Canada for its Diagnostic business. The $34 million facility will manufacture and develop diagnostic tests that provide rapid detection of bacterial organisms, including those known to cause healthcare-associated infections. The 64,500-square-foot facility includes 30,200 square feet of new manufacturing space.
The company’s Biosciences segment reported 13% revenue growth to $1 billion, resulting from continued strong sales of flow cytometry and bioimaging instruments, flow cytometry reagents and advanced bioprocessing products. Principal product lines include fluorescence-activated cell sorters and analyzers; cell imaging systems; monoclonal antibodies and kits for performing cell analysis; reagent systems for life-sciences research; tools to aid in drug discovery and growth of living cells and tissue; cell culture media supplements for biopharmaceutical manufacturing; and diagnostic assays.
In May, BD acquired all of the outstanding stock of Cytopeia, a privately held Washington corporation based in Seattle that develops and markets advanced flow cytometry cell sorting instruments. Terms of this transaction were not disclosed.
The steady financial gains appear to continue into 2008. For the first six months of fiscal 2008, overall revenues for the six months ended March 31 were $3.5 billion, an increase of 12%. Both the Biosciences and Diagnostic business segments posted 15% revenue increases. The Medical segment, still the largest sales generator at $1.8 billion, grew 9.6% for the first half of the year.
Notably, one way BD has distinguished itself over the past few years has been through many of its humanitarian projects. For example, to help fight the HIV/AIDS crisis in sub-Saharan Africa, the company, along with the International Council of Nurses, is establishing wellness centers in four countries hardest hit by the HIV/AIDS pandemic and healthcare worker shortages. The centers will provide comprehensive health services for thousands of healthcare workers and their families. According to BD officials, the goal is to sustain a healthy and productive healthcare workforce, leading to a stronger regional healthcare delivery system. The centers offer testing, counseling and treatment for HIV/AIDS and tuberculosis; prenatal services; stress management; screening for chronic conditions; and training for continuous professional development, including prevention of occupational exposures. BD is providing $120,000 in cash support to help fund the wellness centers, as well as training in safe injection and phlebotomy practices valued at more than $200,000.
KEY EXECUTIVES:
Edward J. Ludwig, Chairman, President and CEO
John R. Considine, Sr. Exec. VP and CFO
Gary M. Cohen, Exec. VP and President, Medical
William A. Kozy, Exec. VP and President, Diagnostics
David T. Durack, Sr. VP, Corporate Medical Affairs
Scott Bruder, Sr. VP and Chief Technology Officer
NO. OF EMPLOYEES:
28,000GLOBAL HEADQUARTERS:
Franklin Lakes, NJFor the 2007 fiscal year (ended Sept. 30), Becton Dickinson & Co. continued the steady growth and performance the industry has come to expect from this 110-year-old medical device maker. According to Ed Ludwig, chairman, president and CEO, in the past eight years, BD’s revenue and profit base has more than doubled.
Headquartered in Franklin Lakes, NJ, BD, which is comprised of three major segments (Medical, Diagnostics and Biosciences), has operations in more than 50 countries.
The company bested its 2006 financial performance by 11%. Total revenue for the year was $6.4 billion, compared with $5.7 billion for the prior year. The total reflects an overall estimated 3% favorable impact from foreign currency translation that affected all segments. Income from continuing operations was $856 million, or $3.36 per diluted share, in 2007, as compared with $815 million, or $3.18 per diluted share, in 2006
The Medical segment—the largest slice of the BD revenue pie—reported 10% revenue growth to $3.4 billion. Strong sales in the Medical division’s Pharmaceutical Systems unit continued to significantly contribute to the growth of the segment, the company said, along with the continued global conversion to safety-engineered products. The Pharmaceutical Systems unit grew by 24%, reflecting the increased use of pre-fillable syringes by pharmaceutical companies to market new vaccines and biotech drugs, especially in the United States. Revenue growth in the Medical Surgical Systems unit primarily was driven by the growth in safety-engineered products and pre-filled flush syringes, according to company officials. Sales of safety-engineered products increased 6% in the United States and 30% internationally. For 2008, the company said it expects full-year revenue growth for the Medical division to be about 8%.
The Medical division’s principal product lines include needles, syringes and intravenous catheters for medication delivery; pre-filled IV flush syringes; syringes and pen needles for the self-injection of insulin and other drugs used in the treatment of diabetes; pre-fillable drug delivery devices provided to pharmaceutical companies and sold to end-users as drug/device combinations; surgical blades/scalpels and regional anesthesia needles and trays; critical care monitoring devices; ophthalmic surgical instruments; sharps disposal containers; and home healthcare products such as ACE brand elastic bandages.
For the BD Diagnostics segment, there was revenue growth of 11% to $1.9 billion, which includes $88 million of revenues from TriPath Imaging, a maker of innovative solutions to improve the clinical management of cancer, which was acquired at the end of the first quarter of fiscal 2007 for approximately $350 million. Sales of safety-engineered products rose by 25% internationally and 9% in the United States, due in large part to BD Vacutainer Push Button Blood Collection Set conversion activity, the company said.
Principal products and services for the Diagnostics business include integrated systems for specimen collection; an extensive line of safety-engineered blood collection products and systems; plated media; automated blood culturing systems; molecular testing systems for sexually transmitted diseases and hospital-acquired infections; microorganism identification and drug susceptibility systems; liquid-based cytology systems for cervical cancer screening; and rapid diagnostic assays.
At the beginning of fiscal 2008, BD received FDA clearance for the BD GeneOhm StaphSR assay. According to the company, the new assay is the first test available to rapidly and simultaneously identify two deadly healthcare-associated infections—Staphylococcus aureus and methicillin-resistant Staphylococcus aureus—from patients with positive blood cultures. It will help enable physicians to implement the right treatment quickly and more cost effectively for patients with bloodstream infections.
In June, BD officially opened the GeneOhm manufacturing facility in Québec, Canada for its Diagnostic business. The $34 million facility will manufacture and develop diagnostic tests that provide rapid detection of bacterial organisms, including those known to cause healthcare-associated infections. The 64,500-square-foot facility includes 30,200 square feet of new manufacturing space.
The company’s Biosciences segment reported 13% revenue growth to $1 billion, resulting from continued strong sales of flow cytometry and bioimaging instruments, flow cytometry reagents and advanced bioprocessing products. Principal product lines include fluorescence-activated cell sorters and analyzers; cell imaging systems; monoclonal antibodies and kits for performing cell analysis; reagent systems for life-sciences research; tools to aid in drug discovery and growth of living cells and tissue; cell culture media supplements for biopharmaceutical manufacturing; and diagnostic assays.
In May, BD acquired all of the outstanding stock of Cytopeia, a privately held Washington corporation based in Seattle that develops and markets advanced flow cytometry cell sorting instruments. Terms of this transaction were not disclosed.
The steady financial gains appear to continue into 2008. For the first six months of fiscal 2008, overall revenues for the six months ended March 31 were $3.5 billion, an increase of 12%. Both the Biosciences and Diagnostic business segments posted 15% revenue increases. The Medical segment, still the largest sales generator at $1.8 billion, grew 9.6% for the first half of the year.
Notably, one way BD has distinguished itself over the past few years has been through many of its humanitarian projects. For example, to help fight the HIV/AIDS crisis in sub-Saharan Africa, the company, along with the International Council of Nurses, is establishing wellness centers in four countries hardest hit by the HIV/AIDS pandemic and healthcare worker shortages. The centers will provide comprehensive health services for thousands of healthcare workers and their families. According to BD officials, the goal is to sustain a healthy and productive healthcare workforce, leading to a stronger regional healthcare delivery system. The centers offer testing, counseling and treatment for HIV/AIDS and tuberculosis; prenatal services; stress management; screening for chronic conditions; and training for continuous professional development, including prevention of occupational exposures. BD is providing $120,000 in cash support to help fund the wellness centers, as well as training in safe injection and phlebotomy practices valued at more than $200,000.
