BDX - Earnings call transcript Q4 2018 | Becton, Dickinson and Company

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Operator

Hello, and welcome to BD's Fourth Fiscal Quarter and Full Fiscal Year 2018 Earnings Call. At the request of BD, today's call is being recorded. It will be available for replay through November 13, 2018 on the Investors page of bd.com, or by phone using 800-585-8367 for domestic calls and area code 404-537-3406 for international calls using confirmation number 3197559. I would like to inform all parties that your lines have been placed on a listen-only mode until the question-and-answer segment. Beginning today's call is Monique Dolecki, Senior Vice President of Investor Relations. Ms. the begin may you conference. Dolecki,

Monique N. Dolecki

Good Thank for and you everyone, us you, to results. Crystal. joining quarter review thank fiscal morning, our fourth

a our The presentation in we posted on accompany referenced press Relations is bd.com. remarks set page Investor presenting of our call. we to at of this As on the slides website our are release,

cause in from statements, that actual possible fourth today's During our Factors press in it expectations. and release call, appear SEC we of the will is such that quarter fiscal MD&A could could our our make differ differences filings. forward-looking and results recent sections

financial assets including the charges release, fourth discuss write carrying We the on financial and A slides. of in can also our posted found Care in performance. non-cash million the measures of to is copy within some the will related website. with be the to respect the In release bd.com to business. schedules non-GAAP schedules, financial press in primarily company the measures down GAAP our our Reconciliations $XX its Diabetes and recorded quarter, value

Following a redesign differentiation early a sets XXXX, insulin our deliver FY not product seeking. product the did we in XXXX, fiscal were limited the launch in of and infusion

made we key focus on innovations. discontinue the accelerating result, a the As other to decision sets and

of and schedules, slides. of appendix or accounting our in the facility During measures, business. the purchase press quarter, the in the we adjustments These the Investor also reconciliations our release, investments found related Diabetes in Care in details GAAP along wrote a production can other financial Relations the to to off items, be with other

comparable fiscal release. includes schedules the in and our we and press to revenue divestitures additional BD, the new a The Bard a prior-year associated revenue basis. and basis comparable inclusive revenues our in of detailed results to the current the will Bard, As excludes financial revenue and on XXXX fiscal currency-neutral into in with BD guidance reminder, visibility speak XXXX periods as provide

estimate an X, the with ASU Customers, Revenue Our XXXX-XX, fiscal of October from of adopting of impact XXXX. also XXXX includes Contracts guidance as

call to to comment leadership just month. like turn announced on Vince, over we last I we that Before the change the would

are pleased X October have to Polen We Operating Tom of promoted BD. to very effective Officer Chief

Officer; President Reidy, Administrative call Officer; current and the Chairman President, Kaltenbach, been As and oversight pleasure responsibility Vince. chain President to President turn and Executive Tom's has and and and to Executive to Executive It global Chief Vice the President expanded us Mas, Tom Innovation Campion, this Officer. of segment. Medical of segment; Officer global COO, is call joining Vince three is now operating Chief Polen, Simon President BD's and to the Vice Executive Chief morning addition Chris Vice segment; Forlenza, Also Operating Leading of Vice Life President Financial include Chief President are: Interventional and segments: over the Sciences Patrick his of R&D. operations President and the in Alberto my supply Executive and

Vincent A. Forlenza

everyone. morning, good and Monique, you, Thank

choice strong impact. BD's organizational company on appointments the he we roles, leadership was advancing months. I segment closely and developing over great vision for Technology the played the leaders with position the past and level fulfill XXXX, just Tom and healthcare to promotion increase next as appointed has to to like our reflects capacity take focus look continuing BD a key of and the our Officer. industry. potential BD the accelerating discuss the in partner strategy progress growth forward culture, performance, Tom, These BD's integration, President XX to the to partner company's COO Monique briefly I Bard role we and Since as made named the leadership on Tom's President has Before strategy, to three global to dedicated would on April driving well implementing named Chief the Tom's change and comment mentioned. our and

the has of to turning to accelerated significantly throughout X, Bard BD measurable and speak slide delivered which strategy our already the will has combination Now, we presentation. results, and

slide like year to Turning X, our to highlight in of some achievements XXXX. I'd fiscal key

last what of incredibly I able As accomplish. year, proud look on to organization was back feel our I

family. earlier year, know, we this into already C. BD you Bard brought R. As the

year we me evident are better fiscal to truly XXXX, XXXX As it's together. exit and that enter we

saw legacy across we expected, in momentum As and the core businesses. both portfolios. strong We this and performance Bard our BD year finished our very with a

digit For we all X.X%, the and significant achieved XXX margin approximately and drove points full strategic year, EPS expansion, of double growth. business delivered overcoming we revenues headwinds while also this we And making basis investments. of grew

Horizon and $XXX just to we FACSLyric time, the to to our on ES and in The Our both the below simultaneously performance. Sciences, the we a marked in pipeline name Covera There later X three growth, few. I'll XXXX cost the in we continuing reducing on segment, strong we successfully executing in and presentation. Bard on MAX, on Interventional the dyes of a share years. targeted new CareFusion CareFusion XXXX, our with those announced, and we million lines focus as our regulatory interest product the business U.S. including more while strategically organization are Vyaire be, Bard the in are our customers And evidenced to At has Dispensing achieved the and third concurrently we in of gains. in number Pump approval as annualized integration new transformation the continued demonstrated of are forward CareFusion we by our we commitments. our fiscal model, and continuing BD track, we deal, excited to Bard have expansion drive just how segment, the Medical to agile transaction. BD about, is our touch and Life from are delivering and divested in on delivering year fuel can portfolio, things as you Fiscal our our value also times the Alaris joint previously, leverage innovation AV to our assets, several are related and the Brilliant product venture, Lutonix same Medical acquisitions strategy In and delivering well our select previously and to equally capture synergy continued and the of we shared Also, completed way to of synergies. Pyxis BD our remaining that as

month. Business, late our last of which closed Bioprocessing divestiture the announced also We Advanced

to acquisition our announce a our Medical. and and execution. acquisition our were great to excited business On pursue we additional of front, very to of into the enter TVA high-growth leadership good tuck-in strong All-in, performance acquisitions example the strategy category about we segments. really This advance continued feel is

will you our growth X, in for fiscal slide our Bard year continued to line and reflects to Moving with strong see of guidance the X% revenue XXXX, which across X% deal initial businesses momentum model.

between expect On the we EPS bottom deliver $XX.XX and $XX.XX. line, to adjusted

can XX% about drive partially in currency-neutral mitigate strong deal the headwinds continue XXXX. expect of to that excess from of earnings expect model We our drive we XX%, will fiscal All-in, to growth of XX%. earnings which underlying macro to

based outlook is Our the our of on environment. current view

guidance worsening to a of or new as top pricing; expected; well the market stronger improving or including: our flu are an of weaker there items season than growth performance case, us the situation could end bring normally the launches; as number emerging that of or bottom tariffs. a range, a is product and around As

million $XXX fiscal will with provide We synergies Chris expect more for over with our achieving of performance are full by Bard to some you XXXX. in things synergies year on also to my pleased we and approximately fiscal now details in color a where share the detailed we later anticipate additional revenue in more achieve those year that to XXXX along remarks. turn discussion guidance. fourth quarter financial about I I'll

Christopher R. Reidy

quarter in EPS three review we by good quarter our broad-based results, our organization segments. as all of currency-neutral financial On basis, quarter strong comparable well and total as and extremely a fourth the XXXX. and slide into for proud grew X, on year. key across revenue the strength driven what revenues Vince, highlights Thanks, the Fourth I'm the everyone. XXXX will I and morning, achieved also carry X.X% momentum

a our As MMS currency-neutral re-acceleration XX.X% quarter fourth and we prior which communicated full year our we all by a moment based in achieving growth XXXX EPS revenue to Surgery, in was year, I results growing Systems fiscal and the increased achieved. through our on $X.XX, color in geography. you some the on I'll revenue the units, Fourth you was outlook quarter in on adjusted of the strength confidence last XX.X% when or in quarter and Pharmaceutical in quarter, momentum over with continued segment take more basis. provide particular

revenues a on grew comparable For basis. the X.X% total currency-neutral year,

As revenue include basis as first a in approximately reminder, impact first our fiscal from of Dispensing the as our full-year impact the which growth in change, quarter, total results the well from points. year hurricane U.S. the half the lowered the company XX

growth Excluding these acquisitions, and X.X%. impacts, X% quarter. flu related approximately timing benefited of revenues, we drove This that to fourth full-year includes the approximately revenue of growth

significantly in expanded margins our also XXXX. We fiscal

annualized disclosed, we previously synergies. we cumulative cost million in our CareFusion $XXX targeted As achieved

more EPS a synergies notable year in of remarks. in $XX.XX XX.X% In approximately strong Full addition, XX.X% to Bard realized Bard was fiscal helped on which from EPS growth grew in and later fiscal basis. currency-neutral BD businesses, legacy I'll headwinds XXXX in Growth we XXXX. both cost or provide by $XX driven performance on million fiscal adjusted XXXX. color offset my

debt. We the quarter, also million fourth continued $XXX down of to approximately delever paying during

paid ahead For initial of down slightly the full fiscal our billion, of we total expectations. a $X.X year,

leverage gross XX. times As a result, of to September our declined X.X ratio as

be deleverage target X years. three achieve our We to on times continue below to commitment to over to

to have record also long-standing Fiscal our pleased dividend consecutive delivering XXth of continued Additionally, our year we dividend. XXXX are increasing very increases. marked an of

I'll our XX.X%. Medical X, Moving slide on to revenues Medical a growth quarter comparable segment on basis. increased BD review fourth currency-neutral revenue

year, Solutions, U.S. from in Dispensing which MDS, infusion X.X% or access an driven grew the the Medication point For Medical by change. fiscal and basis X.X%, revenues disposables. XX in quarter, includes vascular grew fourth Delivery full in strength headwind Revenues estimated the

by revenues MMS capital Medication both in infusion full Solutions, Revenues expected. driven X.X%. in the dispensing, strong Growth placements fiscal XX.X% quarter. in fourth in MMS, was year, the MDS grew and grew Management as For or

earlier in by quarter placements anticipated. Additionally, growth originally was that aided the occurred than

revenues XXX fiscal strong including needles in approximately pen a and a in U.S. was new quarter. year, grew XXXX year. tough Fiscal gains infusion. MMS of continued offset was to launches and the Strength X.X% both grew share headwind the Diabetes in X.X% by full in by Care year performance dispensing the the U.S. the fourth comparison For MMS, in driven of prior partially basis points product another from revenues change. Dispensing

full Diabetes fourth the For products in core Revenues year, in quarter, grew demand SAIS. strong expected, fiscal grew by X.X%. as the Pharmaceutical for Care continued driven in growth and X.X% Systems revenues

Pharmaceutical For year, the grew full Systems X.X%. fiscal revenues

towards As trends we vaccines. to take we forward, biologics positioned are market and advantage prefilled move of well

Now, increased turning quarter and the Sciences fourth the across with performance segment. segment, to X.X%, Life slide BD strong revenues XX

full TB, basis fiscal related XX approximately our Sciences BD culture, installations the quarter. in X.X% grew including the year, For Life revenues revenues. instrumented growth points MAX microbiology blood driven was BD molecular IDAST, including Kiestra X.X%, Performance to platform. by Diagnostic and Revenue our strong Systems flu of in and platforms, grew

basis X.X%, grew on revenues points sets, full supply. push have eased Preanalytical the constraints Systems in For driven additions Diagnostic capacity which of the by XXX quarter, growth X.X% flu. includes Systems where related collection button year, recent grew approximately to fiscal

grew as in full For such year, X.X% FACSLyric. revenues was as driven FACSymphony instruments, and reagents the well the Growth in quarter. by PAS X.X%. new fiscal the research Biosciences as grew growth

full For Biosciences X.X%. fiscal year, grew the

on Interventional growth our slide quarter basis. Fourth comparable currency-neutral a to increased review I'll revenues Turning XX, X%. segment revenues

quarter. point in in quarter. full XX markets China, fiscal includes year, particularly strength headwind Intervention, the in fiscal continued growth PI, reflects the Peripheral the Rico in our well Revenues in hurricane the emerging grew estimated Puerto products, oncology For grew X.X% X.X%, of in strong from an Performance which first as ESRD. revenues in basis or as impact and

X.X%, acceleration reflects in For as to last in reflecting the expansion. regain in the new X.X% an rate, business the full cadence PI hurricane. products and quarter of grew fiscal share year, Fourth our quarter's from following Surgery growth growth continues geographic revenues

which hold X.X%, from For basis the of full and impact the fiscal grew Surgery XXX hurricane, year, XXX includes on points basis from an Progel. points the

our Progel performance for Excluding these UCC, Surgery driven pleased X.X% We Urology items, across the by grown early Care, Acute full and or products revenues have new with the relaunched quarter, are year. estimate and in approximately strong Urology portfolio. grew results. we last Critical would X% month the and

full the X.X%. fiscal grew revenues For year, UCC

XX, slide Medical fourth rate, grew units strong comparable and BD the quarter U.S. revenues in previously quarter. normal growth the Pharmaceutical basis. walk you the was segment, in above discussed. to geographic Moving for MMS revenues through the and primarily a as within growth the This I'll our very reflects X.X% fourth Systems on currency-neutral

fiscal For U.S. grew includes strong basis hurricane. from the revenues year, a which estimated the and X%, U.S. headwind XXX change full point Dispensing an the

the Moving driven Latin segments, to by in quarter. fourth particularly on was in and in strong Asia all Pac, revenues three International, grew Growth X.X% EMA. America performance business

in in performance Developed revenues the grew Developed was Market fiscal X.X% the revenues by Growth fourth U.S. driven in grew X%. the strong quarter. Markets For International full year,

Markets full was the change growth grew by our bringing all the segments. a year U.S. XX.X%. XX rate Fourth the point year headwind XX.X%. an includes total Markets X.X%, fourth This hurricane. estimated double-digit to year, grew Developed and For driven growth bringing Dispensing Growth full across the in growth quarter revenues which XX.X% in XX.X% from currency-neutral, revenues basis to quarter, Emerging in the three China strong fiscal was

Turning statement, a X.X% strong, in were income recaps XX, as revenues to fourth on which discussed, quarter growing comparable the quarter basis. slide the

higher percentage profit XX.X% was spend gross which Moving as quarter, profile, XX%, down achievement of and the year-over-year, by of improved margin strong reflects partially the revenues Bard's the gross SSG&A offset XX.X%. P&L, SSG&A synergies. was during a a profit increasing

currency-neutral resulted invest or continued points in the fourth percentage our increased points in a In selling basis Operating addition, R&D growth XXX quarter. commitment XXX was innovation. revenues additional a expenses revenue which strong commission in basis as margins on of reflects to basis. X.X%,

the leverage We expansion, as P&L operating which deliver continue BD. new margin significant to reflects strong

below XX.X% XX.X%, to range. which Our quarter, is tax rate our was in bringing our tax just the rate full year guidance

paid we the million expected, $XX preferred in dividends of As quarter.

shares currency-neutral As increase are selling were and the we commission the XX.X% basis. prior currency, the were quarter, year, increased preferred outstanding shares $X.XX, discussed per a raw material is on calculation. in which earnings headwind revenues offset Very XX.X% partially adjusted In expenses. by increased versus a or last included the share by the not quarter, costs, strong

of or items basis in primarily synergy cost negative quarter, raw gross XXX margin currency-neutral driven combined points was partially from a These was robust on fourth profit reflects XX.X% margins On basis XX improvement, gross inclusion strong quarter. basis. a and in Bard's performance offset Currency and margin. quarter, by by gross profit points materials. the slide were basis capture. improvement margin margin the as Turning Operating our and synergies. impact improved profile, gross XX to profit our initiatives with XXX headwinds expansion gross on basis basis, Margin the a fourth had operating for the as more margin XXX profit well grew gross a continuous points margin This points. of

fiscal approximately points currency-neutral very significant to four and over demonstrates sound. basis. highlights expansion our For strong full operating basis have basis strategy fiscal underlying execution our which also points pleased We're on is margin XXX we the years, expansion of delivered margin a XXX delivered the that past of year,

deal investments. number impact headwinds positive by benefited stronger performance, on had a growth. Currency EPS EPS fiscal basis. All-in, to was currency-neutral which of Moving also year partially EPS of macroeconomic fiscal revenue XX.X% walk line reflects growth on model. XX.X%, a XXXX. and our with the in from we like through to business was XXXX I'd EPS offset slide growth a you XX, delivered This

slide revenue we have to the XXXX growth fiscal and From fiscal growth weighted on a XXXX fiscal been year with full year we guidance, in communicating expect the towards of line moving on EPS and since year. align of phasing expect X% revenue XX we to our announcement. the expectations X% revenue deal half to perspective, is with This year a currency-neutral basis. XXXX back Now, with the comparable

across the By headwind a BD addition, Sciences Medical we Developed we Emerging strength most quarter. fiscal China be revenues between X%, we a Emerging EMA FX expect all from X% to in three X% in of recent Life segment, Interventional XXXX, expect X% and growth the driven includes in X%. low-double Markets, by by Latin in Market digit and XXXX. BD expect In X% to grow and product diversified about X% we launches to and pronounced with of strength and and both driven which expect approximately and grow first Similar grow We Markets. to base to growth around to flu, anticipate Developed growth we X% points will revenue the XX segments BD related revenues XX%, revenues expect in headwind of America. between In between the basis fiscal to and be growth

Now of to and guidance, XX to moving more earnings like fiscal fiscal growth adjusted are on our currency-neutral driven we XXXX approximately provide our model would our EPS basis. of in robust parts guidance. that and expect on of as deal fiscal moving a strong is EPS slide our the XXXX there of left-side in XX% operating full This underlying color on I by and impact EPS chart per share number to excess the XX% of performance. revenue XXXX, Starting a growth on $XX.XX, is with

right EPS our total contribute lower growth to EPS effective approximately expect XX%. tax to bringing the approximately on to underlying a rate Moving we growth, to the slide, X%

are the on XXXX. slide, headwinds expect Continuing XX% a the you in of will to effective rate tax XX% XXXX. fiscal of we right number see, an facing to We in fiscal

fiscal resin XXXX, increased front, material a to throughout macro pressures into supply-constrained increases driven market. price due accelerated primarily the additional raw by XXXX On and

In incremental tariffs round with addition, in enacted that you. an September the impact one previously we result headwind in to late was discussed of round the will

actively to working with unfavorable the our are We partners minimize to impact going company the forward.

in a normal to also flu guidance which headwind in contrast XXXX, results the in season fiscal assumes severe Our a flu fiscal XXXX. in

have these Advanced basis, underlying also month the On to of drive the to expected growth strong We and of annualization is last to a divestitures. XX% to XX% and Medical. a despite the closed currency-neutral performance related divestitures our Bioprocessing of that headwinds Merit sale EPS adjusted headwind

dollar a While in currency about XXXX, based was XXXX. quarter. current exchange which of $XX.XX, a This approximately rate a euro benefit it fiscal became sizable fiscal XX%. phasing fourth fiscal year of will And in XXXX. headwind the we adjusted $X.XX. approximately on a achieve for nine of headwind of to deliver of expect first represents million EPS to months cost the rates we to in reported All-in, $XX.XX X.X% a From be synergies growth assumes to expect perspective, $XXX in

to are period. million deal We over committed three-year synergies $XXX fully annualized realizing the in cost

XXXX, Now I'd you to to tariffs. to SSG&A be higher between strong higher be revenue is to and as turning flat for performance, is by partially offset X.X%. expected XXXX, the slide costs the Adjusted fiscal of XX.X% to to partially the the full X.X% approximately impact fiscal a to SSG&A due This and growth profile. by currency for guidance points. is Bard's is gross of XXX to from to be achievements, basis to year sales. synergy XX.X% year approximately walk is a of profit expectations balance expected is points XXXX. total due XX, cost when XX.X%. of offset This of revenue This resin a underlying an basis, about fiscal reported is expected increase XX.X% through XXX Adjusted like headwind On our reflects of basis up primarily and and percentage to compared

and be and commitment We in continued in to fiscal expect at our with year XXXX new X% our platforms. R&D of to revenues, investments products line invest about reflects

XXX I margin expansion, represents of the points basis on are operating to XX.X% discussed XX.X% a partially to currency-neutral basis operating grow the underlying strong slide. detailed, of be of previously offset On impact to and headwinds the XXXX expected basis, items the just a margin result This is XXX As fiscal points. revenues. between we expected by margins just

our also expect to just As XX%. discussed, tax to we we XX% be rate

average XXX approximately For diluted fiscal we count fully XXXX, adjusted our be million share to anticipate shares.

to that shares approximately million of is shares preferred For expenditures billion income dividends. be remind to year I'm the of adjusted the deduction deliver confident strong momentum summary, I'm purposes, about flow in approximately expected in net are preferred be we you In modeling excluded diluted across like cash I with would businesses, of Capital million. $XXX flow our The and from strong, Cash fiscal expected excited operating we'll to commitments beyond. reflects fiscal XXXX. $X.X are $XXX about that our and year the have XXXX outstanding.

update Now, will I'd portfolio. call to to you Vince, over turn back product provide revenue Bard like who our on an the with synergies and

Vincent A. Forlenza

Thank you, Chris.

from to as Bard with measurable fiscal Bard synergies we been on XXXX. revenue we the in XX Moving have revenue announcement, deal starting you synergies, discussing slide since expect and

Our investment we that achieving fiscal XXXX, million. are we expect began five-year revenue revenue synergies $XXX synergies the pleased and total announce deal of period, drive to over approximately to in these toward

combination $XXX already significantly three target There million, given we areas CareFusion we of BD customers' and products As this achieve devices First, The combined to our broadest choice to expect deepest the access partner vascular to the management a is become of the have where continue we $XXX in of synergies: million revenue our to of expected, in registration as key synergy process. hundreds than world. vascular larger be us the Bard and a needs. company, access portfolio enables of for

the we the portfolios. summer brought access Bard vascular of cross-trained MDS, sales and in As revenue part BD where together we synergies, investment initial force our this in

reducing and catheter catheter the and our outcomes, Our optimize selection procedure This best practices while efficiency cost. drive customers of enhancing helping around reduce will team adoption is focused their satisfaction, and patient safety and world. complications on improve

have to we prevention combined combined able further infection patients hernia, across providers biosurgery portfolio, our and surgical serve leverage and Second, portfolios. been better footprint our with our new to

we investments direct In and addition, Europe expand new we we surgical made hires. presence have now for activated is where Bard sales a dedicated third in a trained expand have markets. and job expansion. sales a revenue And have broad outside synergy to China. international geographic the platforms, the our portfolio now U.S., sales in ChloraPrep team, did channel to surgical our great With biosurgery and sales surgical opportunity investing in our particularly

limited had EMA they Latin the those the channel substantial rest of products, and in has where registering America, We started scale markets However, Asia. a in but presence see begun opportunities investing Bard where just in BD had today.

on infusion to XX we also are by slide our continued value our There rich of we new to of dispensing in across and can a excited the our BD continuing developing product to slide, segments. have fiscal even launches deliver segment, management. we share to we for launches Turning fiscal medication and our both fiscal a you segment, connected forward few we're XXXX, XXXX, our platforms, platform year to innovation medication number and Starting gain about. launched in planned look here. this year pipeline just in platform management of I'll In and things touch customers. on as Medical our more cadence year HealthSight with planned product those of see XXXX a

We're leading functionality applications. release and pipeline patient includes features expect as higher infusion we which enhancements which position. new interoperability in to new excited a the Pyxis safety innovation version about We build platform of our upon and ES, our delivers

forward the XXXX, multiple are in adding simplifies launch HealthSight the management to Additionally, to formularies. we of platform BD the Data of device with HealthSight looking Manager BD which

made insulin in the Care to sets with decision FlowSmart As our we call, infusion a technology Diabetes our mentioned was business. earlier discontinue strategic in

of other decision Pump. assessment made as our focus the Following infusion Type strategic was product inventions, key supporting options, and our on X such discontinue set a to Patch

initial launch Pump, Patch the the on we're anticipate X and limited XXXX. calendar the our U.S. for in we track will months, coming regulatory occur Type our in EU the to Regarding submit approvals and late

close Europe. a our cause We panel die be Sciences MDR-TB with leading continue TB Life it year, in Type for diabetes. recently living the in from solution resistant single Each to eradicate a death about infectious million the agent. to TB, to fight market launched of this the from to In bringing the we TB. excited remains critical segment, multidrug X hurdle making people MAX X differentiated people BD

We continue improving provide diagnosis we with can that their patients. made identifying as is TB effective the of big This on identification complex. new treatments this antimicrobial clinical focus for best forward clinicians practice, so more for a has resistance the to for step tools test

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Interventional tomorrow the Advances presentation will clinical the identification. a Vegas. automation as of and excited segment, sample the launch the be will late-breaking extend (sic) Conference Advances] half very Las XXX include been of InterVentional U.S. a presented Lutonix XXXX, we Coated in BD platform of microbiology trial below-the-knee management with to Kiestra at to the capabilities IdentifA preparation in the planned continue Intervention Access [Vascular and growing system addition, towards the XXXX the In for In clinical being we are of Balloon has a announce total of Drug data Vascular well for to The second solution Kiestra our Kiestra BD the drive sample lab. for indication,

fistulas drive c-code to our XXXX. late that also expectations, (XX:XX) received provides last submitted reimbursement a Reimbursement option announce a AV clinical We of minimally week. recently the and plans and that support for creating PMA critical new WavelinQ, for technology. line also will assigned We're solution invasive to hemodialysis pleased procedures, BTK. our non-surgical was We in adoption were new with our this to given APC for

We're As XXXX QX growth quarter, looking will our also later in articulating these the teams The for AT and already and OptiFix with our the this launching segment. clinical begun enhance last Interventional fixation U.S. reps you sales also we fiscal launch in preparation have venous training mesh to products Venovo a we of forward year. products stent discussed in launch

As see, pipeline and can way. along updates forward across you you the we we very sharing have look businesses, a products with of rich our additional to new

move in an in We like appendix I important on that find useful presentation that you included have again update I BD's Before sustainability on, topic. to we provides slide this the our today's you remind a to initiatives. information hope of would commitment the understanding

XX, would key like fiscal year Bard. slide messages + accomplished to our from I extremely the in on our presentation what proud as XXXX I'm to Moving BD organization of new today. the reiterate

the we across our strong very with First, finished businesses. year and momentum performance

to Second, on and executing while significant Bard the acquisitions. operating performance we drive both headwinds and concurrently CareFusion strong overcame continued

track. Third, synergy on our integration Bard capture and are

beyond. new We our to that are to is reducing well in are revenue and below to things of growth, exit achieve look excited approximately are we we synergies are in fuel XXXX fiscal about pipeline to we in we X ability on million fiscal XXXX. and three there our and confident number continuing Fourth, a ahead way product innovation years, to the times leverage as our in as our $XXX Bard

successfully execute looking increasing we confidence BD. I as outlook our our strategy forward, new as Lastly, in have the on

the will We shareholders comprehensive our for around and value to our you. continue more Thank solutions deliver to world. customers even

to open now will call We questions. the

Operator

you. Thank

from Morgan line coming of the Stanley. first question Lewis David is Our with

David Ryan Lewis

morning. Good

quick start Chris or with for me. Vince. two I'll Just ones

each are model, consistent a but the So, magnitude of with little guys, clearly our greater. is headwinds the

want reflect a the morning, fundamentals And to is So does I of I macro of the deal this underlying progression business in rate change Bard fiscal the follow-up. emails I think the that with a is headwinds? our a think have answered of from earnings questions model? of investors XXXX storm Or any this perfect quick get just then

Christopher R. Reidy

Sure, Chris. Thanks David. question. for is And this the

improvement. earnings basis that look XXXX, XX% X.X% we the in share X.X% growth XX% I the with and in think at revenue revenue driving of margin you fourth we were per fiscal momentum quarter actually that in year points had EPS, and and growth, XXX increase momentum growth, gross accelerated

the strong, fundamentals the of into are that business we clearly and So XXXX. forward very carry

driving we talked about you waterfall refer then can to developing, top way from that had of chart we're clear we we get those our see and now from through, another that If that, adding the see and XX% X% on XXXX. that into tax synergies underlying you to potentially synergies mix. geographical went to XX% we're And some tax

So the around of improvements underlying XX%. two those driving are combination of

the and mentioned, basis Now, as news stronger. the all of is a points, And the some saw you significant start with growth double-digit out out your And supply ago, or called XXX you fourth of quarter constraints. when in double-digit weeks $XX closer it's basis turns prices so that growth of fourth to resins. had In Typically, year, at had around about point. it's the headwinds macro It I'd supply we going new you a magnitude, in impacted points. impact of it's constraints items, the quarter, of that couple of prices, there is the EPS. resins. primarily XXXX X,XXX in issued around by rightfully note X% doubles was oil we price resin impact talked on million driven million up price over mostly but the about about this by to increases, based and last That $XX

after of of offset of $XX a of impact addition, $XX had about about Between two with going million. have FX basically be you In we conference, second tariffs, things, to those the expect it on reversing tariffs in from saw through items, the million In our that, your was about think resins in it round so million year. or got hit. impact about the suppliers And wrong We the FX X% in-year round this that after $XX now, top and round one and $XX and that, working one. $XXX way, have million your we're of just that pressure. the about and at we total we can was about day what from of said impact we we I other looking round two. conference, million benefit Then

to in nature. we continue working of be that of to with pace basis terms wouldn't going XXX so we're note same headwinds. at We to it one-time I expect expect are that those And the pressures about suppliers base. resins would resource our be of most points Tariffs, pressure. in to

just expect XXXX, that flipped could year, impact year more go can the FX in would and mitigate takes see to from one-time for We much tailwind in actually a year, last whatever impact perhaps, help divestitures nature. flu, in this wouldn't that us. a more while. but we so like and, flip Now, away, is mitigate XXXX next becomes the Flu

about XX% on these going and we're to all-in pressures, from point XX% of in So, offsetting XX% out we're up basis I half XXXX all-in, in FXN still XXXX. would an that to significant

laid So headwinds despite that's still we an the out. increase,

about exceeding feel to and the model. deal the So the strong, point, And anything, we're momentum. business really the your underlying good are we the and extremely if model, fundamentals deal

Vincent A. Forlenza

I years, across performance we've geographic regions. David, couple know, this across that a a we The is, add, strong would the you all geographies it year, as case. only from businesses. seen all perspective, looking of And But thing had and always all back wasn't

feel it. we good really So about

Christopher R. Reidy

two-part you to back you we'll a so had David, go said question, you.

David Ryan Lewis

was detailed. Oh, very sorry. That very,

So, I'll quarter. make expected Vince, one people X% this this quick.

to closer did X%. You

the momentum points basis hundred business, several So acceleration. of in saw we

have different jump is, been would that's I'll So good for Can back to number investors prudent anything queue. the X% to you in it X% what look, And than about question X% you. to talk XXXX? and not the about feeling just X%, Thank how you're expected. guide

Vincent A. Forlenza

we a X% feeling I'm strong very fourth very number. And X% had to about the Yeah, good quarter. yes,

for something marketplace Pharm back vaccine saw one-quarter years. that strong That's you we've of fundamental issue a across Systems, of prefills. changes the year, to the more (XX:XX). some You and well. just it's side not on working We've in seen real Systems. performance longer-term a for out if shift them going And out look It's Pharm been

in both the requiring we side little And but and pump are in tremendous of talked a I gaining yes, there. products share Chris and, expected, new mentioned, side. the saw installation as going about we're performance, some while customers earlier fundamentally, than was MMS, think I that some, you Pyxis on the

in portfolio. good, geographies. saying, all standpoint, going in on BD of was I I China, we've through controls. Feel So good feel a as performance going have And won't and performance the going that. some walked moderation continued our we're performance I jump about slight geography repeat to than I improvement have feel all that. across have of historically, China, of entire a frankly, products. continued Asia. happens down. you then to I think about the all we segments expect the to so from good just And see across Where and new good what is in cost the what's with mentioned the that's just the about in strong good flu. seen certainly but much to up business flu to we we're XXXX, board. What much, across But take we'll over, strong, better in India, quite

I range good X% to you. the about that So feel guidance gave X% we

David Ryan Lewis

Great. Thanks, guys.

Operator

Our comes William with line the Blair. of from next Weinstein Brian question

Brian David Weinstein

Hey, guys. Thanks question. for taking the

Vincent A. Forlenza

Sure.

Brian David Weinstein

the you maybe specifically and X.X% in strong XXXX? David's Life that question little mentioned a growth, the Interventional Vince, Tom, Sciences you into the the very drivers. but on of trends head follow-up obviously, and as talk year-end there, but we with a Medical, seeing, maybe, you're bit specifically the a can Just sustainability about side

Vincent A. Forlenza

kind Yeah, a into detail. you little more get in that. of I'll let Tom do that the remarks, overviewed can maybe I but Tom,

Thomas Polen

Sure. Hey, Brian, Tom. this is

were growth fire in starting is pleased you well each the products in from as new what strong was is, and as both all across the segments three heard what it core three think, that I of across there about three So, where all we segments, most Vince, was saw to you as segments.

with new gaining widely we've We Alaris saw we as year. this share Pyxis again, really the in really ES got new about core positively Medical, as product and MX received marketplace. a so traction think the (XX:XX) And businesses Pump be strong underlying

to We right? strong. pharma. at couple actually few we and course, XX% the biologic of the nice the continuing over It's on Kiestra DS, I'd one that we Vince flu, out to us gain FY And look say, now choice see starting. point that portfolio for season, is are and momentum expect trend mention, the capacity pump There new for we're of continue vial side, the is XXXX. expect really taking about in to really we we Same Regardless well lighter I'd great flu is adding a happens, happened instruments. self-injection And, we've grow Systems, MAX footprint in U.S. prefill, of we've And around investments the you able had as got and forward, then in and in both on very the in capacity that. last north years. years in coming been X sure positioning just continue that Pharm So, did of trend year. to as make growth a strategic space to in of going expect year. we're and the and really Veritor so continuing the in flu by a the strong – given made a of trend then we're but points BD in Sciences, and of core that share off a in internationally we it with thing the driven that online. capitalize larger further U.S. penetration XXXX be also the on over trajectory seeing heard some season partner uptake of we're top to past that got space thing up a actively Life businesses position And while into we've modeled pick XXXX. capitalize Veritor we'll a share in what PAS, that to

seeing – of are and north Interventional, very I'm about grew businesses had there. we're Clearly is on BTK tomorrow, this gone into as out overall November, the the in But And momentum X%, bit will very that as we've Progel. Progel saw of Obviously, driver much the three just every Intervention grew led growth of positive to I and another we just really come XXXX. on portfolio even into WavelinQ, the by depth going X%. business we business, And our finally, in as go in month the we Peripheral We're XXXX. think line of which good a as X% by two new go the expectations. For with driven of at sales you ramp go obviously month there to are benefit we're positive of ordering a October be with start Button, impact reimbursement, sorry, – lot but seeing which the growing us then only will And thing high-end the Push uplift momentum reagents. a instruments up. there, XXXX. Bioscience, into reflecting segment data limited you the is of saw of And just and that's we last north customers

about So, the core starting feeling overall portfolio value off. as of take business both well to well the we're the the across businesses, really as

Brian David Weinstein

Okay.

Vincent A. Forlenza

legacy Bard, anymore. piece and we we add, going information might probably One this grew a Bard lot, over I forward BD XXXX and see grew But we do legacy X%. of in back get asked legacy this going by to question won't legacy X% about BD,

Brian David Weinstein

Great.

Vincent A. Forlenza

Okay, thanks, Brian.

Brian David Weinstein

Thanks.

Operator

Sachs. Goldman from the Isaac question Ro comes line of Our next with

Isaac Ro

Thank Good you. guys. morning,

Vincent A. Forlenza

morning. Good

Isaac Ro

Hey, guys.

bit competition where has on bit us been a of more on you thicker, getting Sciences pipeline while couple side. MAX in I then pretty here. sense BD be Patrick give for a molecular Medical I'd key at the for status secondly, little the in life XXXX? the a so end is little from in strategy you we initial product? cycle on TX a detail on just Life the bit Vince, to you where a little the doing give business, that for Can a think a rollout about interested for question go as And Pump. you mentioned Patch well of items, So, of the maybe now. Can us are

Vincent A. Forlenza

do Patrick second. will Sure. Alberto and the first will take the one then

Alberto Mas

be Type the are of we potential Pump, the Patch Yeah. the X Well, – about excited continue on product. to very

making are We program. the good progress on

in learning for preparing our in customers. few a months clinical next expect are our be and to the the Europe. we both through And We with U.S. submission and interactions trials

and programs up as to getting Our generation are evidence speed, production we lines are well. working our

towards FDA there. the report is timing able progressing the we we're expecting the program and to well, news process depending good U.S., to to launch in obviously So the the so be end approval – expect year calendar and of on

Vincent A. Forlenza

Patrick? And

Patrick Kaltenbach

by Yes. we is me in This is the and heard, Patrick. report the BD that as out. lot grew year, let had very a new Well, you've with first a MAX, driven, course, really worldwide growth about we've of bit MAX, XX% of Hi, panels little Isaac. on strong BD we and rolled

Panel like us continue will give here next new momentum. panels Viral U.S., Enteric out year We so continued in the to the roll that will

on MAX early BD very go platform accelerate think of That as very, the is I'm moving moving So access through a I growth well. forward. slide as for forward, that which will as and our year, molecular end said, year, throughput launch we towards a next new positive on an next in solution the we BD higher molecular for products had COR molecular

So, the opportunities this positive space. overall, in very on growth

Isaac Ro

items there off I'm much, going number, that that if next release not free we XXXX past If years a in growth? of in guys could follow for but going $X flow looks the Great. on little year, roll I look few with to a above the cash about talked And what's in guide kind just curious period. that Chris next Are look up billion Thank budgeting, the XXXX you. CapEx, over come the think at doing bit more about I you're to little you the had capital the over a if on there? it maybe like

Christopher R. Reidy

is It from the capacity which comes stronger Isaac. about Sure, revenue more in really reality. growth

what's up. CapEx the So that's driving

Isaac Ro

Thanks. Okay.

Operator

line Robbie JPMorgan. Our comes question with from next the of Marcus

Robbie J. Marcus

your Chris, there, question payback Thanks on capital Great. taking just for to allocation the the up hit follow question. you've targets.

You're now of as than September. X less times

Christopher R. Reidy

Right.

Robbie J. Marcus

into And of how help rooms, or that balance debt ways headwinds built a that, any macro in some the are the maybe levers In there where do that you macro some guidance are for paydown those to headwinds, of headwinds? isn't maybe some using allocated of you of cover other a there money year here? number can offset

Christopher R. Reidy

it cash-driven terms don't offsetting I the being headwinds. in issue see of Yeah, a

a I about, investing for the in we as of CapEx business we're number in talked just think ways, significant purposes. cash capacity

And as cash, we so, a good of lot generating see. that, and feel we're you about

both. can we the business do to So invest we grow continue on and We to can expect, the in as to think debt business, our the still think commitments paydown. we make would you

and X to years. times I left, would be left two point that the got we've next X ratable about expect so over And or

down another and below So point next this year year, another and we'll be X.X times. X.X X point

do So items. of think those we can we both

Robbie J. Marcus

do that vein, hospital you've broad bulked need to And jump platform you you the very a have, of here? could great. successful are don't any want that you think to maybe How areas that be plan. Bard how to about gun, the do CareFusion there you the And stand now with Okay, up to M&A? fairly think to, you ahead stay looks about had that in integration. continued going think or I be now adding out but most

Vincent A. Forlenza

what Yeah, we thanks just for focused up. have finishing on the question. integrating right now. And We're we're really

the have business. CareFusion. much that excellent an We're the of we pretty a we Bard And to standpoint nature do from the we plug-ins. just to focused integration. As It's going said, strategic We're on continue small know portfolio. finished

saw TVA. with it You

larger about going get becoming we synergies, enhance the really us positioned to going customer choice up and management. driving We're continuing have strategic be we expect should much, ourselves And flexibility. the that the Tom to and as you experience. But BD to we'll ways run, bigger in but great and That Chris for focused what move, partners what to want to strategic it's and after within – are ever on. you paydown to easier we're base now. That's the It's to drive to much focus and discussing, thanks we to process do if as acquisitions. getting I portfolio the We making that to as out innovation right this strategy We're one we're should think you is and So have driving choice of desired what as going doesn't plug-in synergies. have playing – our we're what know your that's phase always of call these question. about the business do the that's we've drive on industry. require with, also capability. build system, simplification It's our – debt be partner we'll capability not great In category simplification, we think our long make of another the broader. our have in the

Operator

of Hopkins Bob question with of next from comes link Our America. the Bank

Bob Hopkins

Oh, thank good morning. and you,

Just questions. two quick

First, you Thank can when the constraints a and just cost the those on talk do ease, clarify little come when ease, costs, more just they and resin bit supply to down? you. about do

Vincent A. Forlenza

Sure.

propylene is byproduct actually which issue the significantly on is the production So constraint supply ethylene a has and ethylene, of reduced.

that supply standpoint. And from we So byproduct happening it's a a of that. just saw

U.S. the outside in are from We little of seeing bit capacity a coming

supplier a year the area. recall, that in was there or bankrupt had went may some hurricane the so. last You propylene issues We over

the those of the coming same driving is at well. combination from the impacts some oil all you time as have but price are what's in There constraints. So of factors capacity sources, international positives capacity

to year. the that be So year. go future. fourth seeing hold we think increase up kind for But of it we stable think that impact the continuing the We in that of fairly over that of don't course will the see the we're in quarter this will double-digit

Bob Hopkins

because I question particular exceptional then to up, this And just obviously a follow great. wanted business very quarter. ask Okay, that's that MMS the on growth in

gaining. you you just think could quantify market then – about earlier So share the are as you're could Thank your in dynamics to where are seeing a of maybe explain if little you terms kind more you curious that? much I'd just you. you're expected. be of placements bit share, that how pump around if than And comment What

Vincent A. Forlenza

Sure. take that. Alberto will

Alberto Mas

dynamics side, it's both Yes. actual – timing, a our they're of capital it's of (XX:XX:XX) of in that well, dispensing the after also the combination availability our the the purchases, saw Well, the be the great and terms cash But infusion. installation, time. customer This side, resources same obviously, like. these comes as trades timing. both the quarter. timing if We pump Pyxis in – infusion well XX%-plus dispensing placements business, of on and service of as purchases, is readiness, of business by variability you there's on rate installations. component the in expectations ready A when and a lot sides especially more timing, performance of preparedness, continues and to And affected terms of at and in own and growth

capability on. driving combination like that HealthSight the overall, which products are is now have anchor our of market timing. as to investments mentioned really that now conversions on so that as these drives – dispensing. sites we of our what and interoperability the business our gain in on But and through A the that would more Tom XXX and estimate like around percentage is expect and and (XX:XX:XX), there of – share connected – infusion rate well integrated over we really integration of our that our some the lot What perspective. ES Pyxis continue. is the is strategy the point that enables or live So from unique We capabilities. the is I the the momentum core, analytics platform, growth and of side, the X a The business lot emphasize in X% MX of underlying some share then momentum we

Bob Hopkins

Very Thank Great. helpful. you.

Alberto Mas

Okay.

Operator

comes Wells Fargo. Larry line the Biegelsen with Our from of next question

Lawrence Biegelsen

question. the good morning. taking for Thanks Oh,

Vincent A. Forlenza

Good Larry. morning,

Lawrence Biegelsen

the start One and I'll on on Lutonix, revenue XXXX one the fiscal with guidance revenue guidance. and

you X.X%, about earlier, my is, more the and guide someone being talked to I to as X%. So you mentioned exited loaded. to Chris, But it question X% it's prudent year growing back-end think

first to case. comp would the then and be in So year. trying the is easiest follow-up. had I question, That's QX I understand just think the why my a that

Christopher R. Reidy

line there's to that's flu us talked earlier half in MMS, in things. over as on the year, Yeah, growth first (XX:XX) the bottom will prepared of of out fourth in we then remarks, hit grow as so first that's on quarter The these mentioned of I in and two and MMS quarter. side. going the quarter, the the the about in the is some first – And with revenue FX placements that that the come XX%

the the that's So for reason phasing. comments on

Lawrence Biegelsen

million. Thank about you. And opportunity then estimated positive the a think Bard on that $XXX Lutonix, outcome BTK tomorrow, I was assuming

that? outcome drive and tomorrow, is, that reimbursement is a positive do So for kind And you my assuming sufficient in agree opportunity? the place question to questions. with Thanks of taking

Vincent A. Forlenza

Simon?

Simon Campion

Yeah.

has opportunity it's be market projections will it nothing for reimbursed Bard – and the to the changed going any So with traditional from the is DCB. expectation respect materially to be as BTK, to continued

Lawrence Biegelsen

Thank you.

Vincent A. Forlenza

very expected. what in So, line much with we

questions. the for thanks Okay,

Operator

line comes Our Kristen the of Stewart Barclays. from with question next

Kristen Stewart

have two questions. I Hi.

Patch relative the relative have on first the but one, the I I did this, second to I discontinued frame Pump. that to then more a wondering opportunity know The go bit for sets. if Pump? just How I little know you in touched you opportunity of was you little you bit Chris. a could in terms Patch And the question a

Vincent A. Forlenza

Tom? Okay.

Thomas Polen

Hey, Tom. This is Kristen.

Kristen Stewart

Tom. Hey,

Thomas Polen

the first last the over the evolve FlowSmart a years. So, just was And the didn't differentiation FlowSmart more, seeking. market, continued earlier that few product pump certainly for of little off, X we redesign the bit insulin to type it's on to were speak mentioned call, to as latest deliver level

in have to FlowSmart. we could so, invest And look, continued

to made in R&D attractive pipeline, DC. clinical to more you investments both we and we as to into that through number within product trials. the behind continued And It's the we we're behind DC, there of you product. and more Alberto, and our outside And If go yes, have our number some attractive investment within certainly gone that, could Swatch opportunities as very (XX:XX). opportunities that. is of – of But continue on part that outlook funding through product continues OEM DC would that be in of now an as the economics more from decision a and process given one of portfolio to have and redirect investing further put product us positive heard ask the we invest stop that

continue We patient at or feedback to on additional our physician all get and is it expectations. above which

this the market on stage doubling-down to And final of we're bringing so, this year.

Kristen Stewart

given but has lot a was I Perfect. And where running then like not it to was you if perspective jump that. not wondering XXXX, too higher royalty us fiscal timing Bard. been ahead, a just trending just than to for with impact ability could looks really kind too, of it I Gore I on far know the your And through big give that's just grow the it royalty bit ends, the of deal we sounds term? little how had running the about think a that but... you like just mentioned how Clearly, Does model. of headwinds, about you year, when that's but a this bit of offset know just we you're or to out, some should should think Gore? kind longer those little of ahead confidence increased give

Christopher R. Reidy

is they and paydown the a with corresponding the synergies, So, we right and no interest more from Gore talked in bit now little the about start deal, little in XXXX. we reducing coupled we and in debt fundamentally, a what is this hotter. about bit And announced decrease impacts ramp-up that that yeah, change talk revenue when is But the running the expense, Kristen, biggest royalty that it's the you're XXXX of Chris. in

the and helps. well. the dividend a conversion little that again preferred The cost as bit that, mitigate So, helps then synergies of

what expect the we it's to that's see. would So, same fundamentally, offsets, so and

Vincent A. Forlenza

for Thanks Kristen. questions, the

Kristen Stewart

Thank you.

Operator

next of the question from Our comes line Evercore with Vijay Kumar ISI.

Vijay Kumar

guys. Hey,

Christopher R. Reidy

Good morning, Vijay.

Vijay Kumar

questions. Thanks Morning, for the Chris. taking

Just get so of maybe time. you margin the had, year? a this to the looking guidance for that understand tough the to can operating at but What guidance back the I the deal just the midpoint, the if here. I'm of maybe right model, on end would end, getting high some margin the Because having points look XXXX. margin we Chris, low of at to through of expansion low the that annual basis headwinds cause end even question, margin guidance, at XXX I'm

walk So, can deal through versus the you just us model...?

Christopher R. Reidy

Sure.

So, about XXXX? you're talking

Vijay Kumar

Yes.

Christopher R. Reidy

Yeah.

basis, right what would XXX we underlying basis which an operating margin So, over is line in points, on with expected. expansion be the

XX somewhere from basis raw XX and a drag tariffs the basis point, in about to there, the materials, get point You resins, XXX divestitures.

all-in So, with proud points XXX of We're margin XXX of driven points amount fact what year And then the points XXXX, driven through a basis had to margin more XXX reminder, is XXX to-date kind mean, and over XXXX. of XXX FY line we've the right announced. this. than with basis we'll period, expansion, I say about expansion. from same have just to next in And as about that likely in basis five-year a all-in, we got of originally we've which we really X,XXX

good feel really year. we including expansion, about So, margin next

Vijay Kumar

then sustainable, on Chris, it's Is so And any one for guide now this you. or tax assumptions year-on-year. one-off Got the rate, were tax down XXXX? there for

Christopher R. Reidy

sort one-off. XX% it's better bringing would take the of and BD talked of And Yeah, that. we of It's XX% to the to synergies and about. the so really the driven geographical a that we is through, not and structures a part normal Bard mix by together said year tax the and reflection

Vijay Kumar

guys. Thank you,

Vincent A. Forlenza

you. Thank Okay.

Operator

Our from of the comes next Richard line question Leerink Newitter with Partners.

Richard Newitter

missed Thanks at can just revenue million ones questions. synergies you to about how over have $XXX just my XXXX, through talk taking if but the cadence which the to that for might I time Bard it, different think one, materialize can the you period, buckets, by and Hi. which there on the Vince, talk first times?

Vincent A. Forlenza

Yeah.

in start PICCs. add business put little vascular to I'll a bit and the Tom now products, sales and U.S. optimized portfolio the of that an in about can got in go one as is including the right to we're color together forces to So, sell starting But the access And that then MDS. thing more able portfolio. We've it. We've first think

look that you when XXXX year at think there. things fiscal we points so for and up tens from ramping about And we're basis then XXXX, talking of

around on side, the thing ChloraPrep. short to in the we've that the Europe, that's Surgery is, and and biosurgery in force other sales that's contributing The hired run and

brought We're those on. we've so them And reps. sells activating

already two growth the Asia, America and Latin to But once like then those past the that have XXXX. piece. is doing places going We're So they on stream get anything that? are add are third come want accelerate Tom, on. organization China, in you piece and they you to things place. good expansion that. the continuing they geographic in And else the

Thomas Polen

about, we've in up. obviously does gains it And of step maybe That those invest invest you the that after from we last Bard as that the think got and XXXX a next pillar, XXXX, XXXX, where expansion synergies then phasing China, was we're talked third about also it additional over very doubles a we in great to of increases invested to summary. know, Latin really two limited Europe, now The so about like level, had the five-year were heavily EMA, and off Vince areas kind talked Asia. channel mention vascular relatively of to hadn't where this at and yet, and the in things From for it rest access, two only continuing modest they stays other timing years that. window in year; the America, then maybe of

So, but to XXXX continues certainly, XXXX step up is more a step-up, then ratably.

Vincent A. Forlenza

Yeah.

Richard Newitter

last very ask, currency China this really call heard I earlier and that a XX% like in What quarter, wrong looking think about looked much. maybe comment moderated, for that China on at the just just if numbers. I I'm the same. specifically? That's could helpful. it But I Thank roughly Okay. the then growth was And constant you comment quarter, growth

Vincent A. Forlenza

actually grew the be But board. expected across year. very That it low-double XX% strong in forward, we looking was to we that next was performance mentioned And all the quarter. said said had me. it I Yeah, I digits I

the had side bit had a that is in was to that cost no the our that new We performance expected seen whole exceptional This in Life little of We news. put of Sciences continue, industry place. business. control

basically expect same all. the a lower, we So maybe tick that's performance,

Richard Newitter

Okay.

Christopher R. Reidy

the most dollars Yeah, lower that of I same revenue growing because bigger a math amount related of we're about say, base. tick to was would off

it down alone. from a steps point two so or that And

Vincent A. Forlenza

Yeah. But to thanks for the that. clarify chance

Richard Newitter

Okay. Thank you.

Operator

of question Schenkel Doug comes from next line with the Cowen. Our

Unknown Speaker

Hey. Good morning.

Vincent A. Forlenza

morning. Good

Unknown Speaker

my Thanks today. This is questions. Chris for (XX:XX) for on taking Doug

do to a could up XXXX? As XXX to synergies, breakdown the your in just margin you execution expansion core key expansion? contribute to bps XXX and cost of inclusion drivers the to of Bard previous target the follow how Now, question, provide a of

Vincent A. Forlenza

Sure. one Hold second. on

Christopher R. Reidy

Yeah.

brings and XX about about plan up or XX points. up Bard pressures So, about That basis in the XX flus basis are initiatives points. mentioned, The total XX XXX base I XXX And basis of divestiture the to portfolio about about points. then range, the to are you then, resins, to points. XXX the is another to tariffs, of you which add XXX as and the synergies gets XXX basis kind

Unknown Speaker

just a you. Then Thank maybe follow-up. Great. unrelated

guidance next XXXX with business, year in X% X%. growth Life is ended You Sciences for to about X%

headwind, points growth is moderation Thank year underlying you in that growth impacting sustainable being you flu just for on revenue And next year? still I comparisons. can so Life you. as in what called think that guidance mean, I else for the flu just basis rate implies beyond comment a difficult out business? XX Sciences' with growth next mind,

Vincent A. Forlenza

Yeah, Patrick will that. take

Patrick Kaltenbach

take to happy I'm Yes. that.

look also this course, flu. rate, growth at a foremost, year's First you from had the of and if tailwind we

think are we Sciences. that's overall X% underlying point. And if to between flu well been between X% you we first I is so X% in growth growing this take So X% at forward-looking, an out, somewhere had year, as what and my looking Life market

and with between the flu X%, will achieve have end, this well. in as we diagnostics the say we if product in opportunity headwind product to confident grow take and base, out X% goal We you we solutions market the year, Sciences year If did the portfolio. roll with at the in actually new we above year a will what a portfolio that very this grow that our and not immunology high we strong market. lot see and Preanalytical of out Life portfolio will the have we next space, momentum I'm the

the basis The points we on X% fact positioned account the based are fundamentals I are that strong again, we the X% So, really flu. are to XX and well. for think in

Christopher R. Reidy

had year, was and thing the that current worth Yeah, the is XX out probably the in FlowJo only other Yeah. we basis points. point I'd acquisition

Vincent A. Forlenza

Yeah, comparison so bit. little a tricks that the of kind up

Christopher R. Reidy

Yeah.

Unknown Speaker

Thank for questions. my Great. taking Okay.

Operator

Our next question Quirk comes line Bill with from of the Jaffray. Piper

William R. Quirk

Great. Thanks, morning, and everyone. good

Vincent A. Forlenza

morning. Good

William R. Quirk

pacing synergies, secondly, the pacing Tom, Two in up Patrick, on to and the love commercial here it questions, would us I guess, reimbursement to you speak in – of CareFusion pretty guys. set you've the can comment Vince, then, Rich's maybe, the dynamic revenue respiratory for of question And GI on for years? regarding first, just next Medicare I couple and Medicare? kind the or about the changes up, of your position just good panels potential changing suppose panels, a for payers how that follow strikes around BD I given a Thanks, is that to following so

Vincent A. Forlenza

All right.

the to So, to Tom CareFusion. is going talk

Thomas Polen

Hey, Okay. Bill. This Tom. is

realize million So, on $XXX in track CareFusion, we XXXX. to to cumulative the continue on FY very CareFusion synergies be much by

coming of we're the course so And to end tail process now. of that

we've what when saw to and at north we're of what where X% that's CareFusion segment, that MDS business underlying focused, – I based into seen the impact, is the seen we XXXX and growth think specifically talked it's the growth we've seeing on that going obviously across journey in you're really and of MMS, exiting think acceleration started a an the X.X% As about the and you've was which remember all rate number before, there, of tens XXXX within which bps from Medical X%. you International I well

XXXX. Maybe clearly as to seen home in impact way synergy And we've bringing look forward a from comment and contributed that so, see that to we Alberto strong revenue well. a in that the

Alberto Mas

continued and international Yeah. efforts product to total product I also of registrations we a to And emphasize revenue segment, want new registration just lot infusion of markets of has IV are Medical synergies. dispensing color and a bit give Prep Pyxis the driving a driven solutions, CME, as more we in it's these registered that that and our little XXX expected. by really the on pumps ChloraPrep Rowa the are some of some items

Thomas Polen

MAX? on Patrick Maybe

Patrick Kaltenbach

I referring Yeah. it on really that. have a (XX:XX) think mean, we portfolio expect answer can to changes, impact I on do our not I overall. big Tom to Medicare

but the some tests our most fall population. according As are you to paid we (XX:XX) of outside exposure, because CFLS know, they not of have Medicare

expect don't we So, there. big really a impact

Vincent A. Forlenza

We it expect a been to. impact. hasn't It big don't

Operator

the from final Our of Amit with line Hazan Citigroup. comes question

Amit Hazan

hey. Good Hey. Oh, Thanks. Thanks. morning. morning. Good

the on Let synergies me ask my on cost first side. the Bard one

as your wondering, now synergy year close, versus what's target whether we're to the guide? cost nearing of ago improve room the Just since your almost kind to visibility over original year the a has now

Christopher R. Reidy

Yeah.

question, the So, thanks for Amit.

don't $XX which public did were of would the I but to show think of that one to were We included some and the from get types come and the thing those amount. million about I XXXX synergies company in did typically is not initial the costs synergies, you point tax in duplication them, fruition. We procurement.

centers execution and typically the visibility of to those that. systems is that. are that high. of et the want that would stage and processes And and bucket is it, really in integration think to the very I the $XXX is then, good The of we while. cetera, takes you million next bucket plants, So next but about third And distribution feel a you see the functions. and

where takes more buckets, ones and see coming execution. to So, are into get the execution the we'll we're a just of two which really of those the the are that lot difficult phase

XXXX. of us so nothing middle we something before at tax, the longer we're but call can that this predict $XXX right increase beyond an a we on, So, enable see that to that that's the it in million would point execution for to while

Amit Hazan

platform share in the can hernia give I'm some Bard recent hernia, actually success Bard's you just the last just was And on trending doing business in what seems acquisition. and Progel was growth from year. in in particular, color the hernia what wondering it and hurricane, than of if I even if in gains coming trends on years and and coming be pre Thanks. Surgery a us one, expect part Obviously, to then Interventional exclude your slower so you big there

Vincent A. Forlenza

Sure. do Simon that you. will for

Simon Campion

process and just of the that in the we're think, off as we've I share Progel come we've regaining hurricane of you said, lost. and some So, the

done. in for there to reacceleration that remains We but QX expect us. to saw work be You a continue, clearly do

So are looking we at momentum forward. earlier geographic forward on, then, that's looking as our for what we well, now – we're too. said to accelerate as And to here able be at expansion expect moving and to that moving Vince

forward So, we're sit right up. with executing pretty that rolled looking and to synergies we're happy where we on now, the we've

Vincent A. Forlenza

just doing very, that to done Yeah. very inventory overall the but that the in program All competitive was And from the deal hurricane was well. lot the recovery a had and we team in has doing production of all, overall to in getting well. And in of that place, back segment is expect channel Interventional there not the getting course, fantastic business that job go back. we in but the on continue with. XXXX, is a The

XXXX, So, question. we in for continue to but expect the recovery that thanks

Operator

remarks. there further to back this Forlenza floor closing no At Vince turn the are now for questions. time, over will I

Vincent A. Forlenza

thank your So, for much participation you questions. very your and

done. to the this we of final and year very performance value XXXX, into finish Bard to what Let a BD combination feel year, next momentum We team and to look continues you forward me customers our just and has I with and updating thoughts. and our Thank lastly, had deliver we incredibly to some you much. of fiscal The shareholders. have finish proud And our time. very going exceptional good strong

Christopher R. Reidy

everyone. Thanks,

Operator

concludes Thank conference you. today's This call.

now disconnect, a have may and You wonderful day.

Becton, Dickinson and (BDX) 6 Nov 182018 Q4 Earnings call transcript