BDX - Earnings call transcript Q3 2019 | Becton, Dickinson and Company

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Conference CallParticipants

Kristen Stewart - Barclays

David Lewis - Morgan Stanley

Robert Hopkins - Bank of America Merrill Lynch

Robbie Marcus - JP Morgan

Vijay Kumar - Evercore ISI

Fargo Wells - Biegelsen Larry

William Quirk Piper Jaffray -

Wise Stifel Corp Financial Frederick -

SVB Richard Leerink - Newitter

Matthew Taylor UBS -

Cowen - Jennings Company Joshua &

Operator

Hello, and of call welcome Earnings to on for the BD's your Third XX, and August website the XXXXXXX. by It phone all be lines XXXX, of or replay confirmation recorded. through Call. for Investors Fiscal number request BD, I bd.com international being a until like today's XXX-XXX-XXXX been page is the listen-only will available parties the At Quarter at XXX-XXX-XXXX answer the have that area for in placed question calls code domestic segment. inform would calls to mode using XXXX and

begin. Dolecki, Vice Ms. today's Investor is Beginning may President Senior call Relations. Monique of you Ms. Dolecki,

Monique Dolecki

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

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

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

schedules related posted the and is of will We purchase slides. detail release our press financial the including measures accounting website. financial copy the its in release, also A can performance. the other found respect bd.com include measures in on with appendix the our relations and of that and of non-GAAP financial investor Reconciliations the discuss schedules, to some GAAP to the be adjustments

The divestitures other quarter prior excludes revenue visibility, additional provide we associated currency Bard with and XXXX and our speak intercompany neutral comparable a adjustments. comparable fiscal guidance year among XXXX basis to includes basis. periods, and and current revenues in fiscal results BD revenues will reminder the a revenue to on revenue As third and

Leading Executive joining Chief is Forlenza, Reidy, and Tom and Vince Officer; and the morning President, President Chairman Officer. Financial Vice Officer; Executive Officer call Chris Polen, Administrative Operating Chief Also are Chief Mas, of this us Patrick and President Executive the Campion, the President Sciences President Vice Interventional Simon Kaltenbach, the Executive and Alberto and Life President of Vice President Vice Medical segment; segment. of Executive and Chief segment; President

It is Vince. turn to call my now pleasure to over the

Vince Forlenza

Monique, At BD, you, our is morning, Thank health. the advancing of good everyone. our by driven world strategy and purpose

is our Our remains results this strategy quarter strong. our that core working and demonstrate

Our impactful customers. progress with our deliver Bard is comprehensive more enabling us solutions even for to

Slide to our highlights. quarter and third Turning X

strong, Our the plan discussing we you third revenue been throughout back that year. half quarter performance was with the growth have reflects acceleration

segments. growth expected, drove As broad-based all in we mid-single-digit growth was and three

EPS of year was through right in-line fiscal also expectations our on-track. Third the first and results with quarter nine-months the our or

year the our as by approach deal of the sustained top-line towards we and our capture. successfully progress of new we continue evidenced cadence launches As and model, to product synergy final integrate revenue cost Bard momentum,

common the purpose. engagement pleased associates motivated a as our highly the also are We are of across by with level organization,

momentum EPS and third the year guidance. fiscal the continue year forward the full quarter to Looking we XXXX remainder reaffirming expect are of XXXX, revenue and to fiscal our from

discussion XXXX guidance. I Chris year of over now more fiscal fiscal our to for performance will things detailed third turn and our quarter

Christopher Reidy

Vince Thanks, everyone. good morning and

as highlights. our financial the review Moving on well EPS key revenue to Slide third X, results as quarter and I will

currency quarter on Third comparable revenues a X.X% basis. grew neutral

of a mentioned, strong was broad-based strong of indicator and third revenue is As Vince quarter the health the business. growth our

confidence second we that discussed across half in planned As are segments previously, a acceleration. us have there our of drivers number gave our

geography. quarter color the and results I when moment you take more provide I will by the growth a segment revenue third through on in

Despite quarter. also first time is we our Bard basis, the per EPS in-line for expectations adjusted currency XX.X%. headwinds mark at EPS since neutral On the with in the $X crossing communicated delivered share $X.XX the quarter, the significant closing for EPS grew FX acquisition. previously a

to approximately continue was to third $XXX we the during debt. achieve delever of our Gross on-track XXth leverage three paying of down quarter, over years. million as June three below remain to also X.X We to delever and commitment times times

will to Moving revenues on X%. segment I increased Medical’s revenue growth. medical third Slide X. review quarter our BD

gains share Solutions in strength Management expected and and was pharmaceutical performance continued momentum driven the As by medical in segment and systems. Medication

and Growth our solutions access reflects portfolio, as normalized Diabetes and vascular driven markets. synergy by leading was growth with delivery our addition, medication emerging Care by In expectations investments. in revenue our also strength which anticipated was aligned driven in

BD turning to the business Slide X% X.X% segment. quarter, three with Sciences strong In growth Life delivering third the in of units increased X. Revenues Now plus. all

as the segment molecular and As our including well microbiology IDAST, for continued our by diagnostic strengthen panels. platforms with anticipated mainly performance our driven in MAX, double-digit growth Life Sciences as Phoenix was solutions systems BD in

we was strong pre-analytical instruments by emerging In Growth saw research in and the systems driven reagents in demand Biosciences and research growth U.S.. in in strong sales markets.

And Turning X.X% BD revenues Interventional to third segment, reflecting quarter the portfolio. diversity the increased Slide the of XX.

sales include As anticipated BDI's XX% in approximately reduction the in results plan of quarter. related a DCB

quarter. grew X%. would the and in the over Excluding in the revenues Revenues DCB third impact have Intervention Peripheral BDI grown segment low-single-digits

high-single-digits. DCB growth the have been in impact, would the Excluding revenue

and WavelinQ, Our Venovo Covera to perform continue products well. extremely

synergy growth U.S., ramp biosurgery our surgery in sales in see and revenue the and reflects performance where prevention and as Europe, infection biosurgery continue benefits we to quarter strong and from to Progel revenue and investments. growth continue double-digit the Third

by urology as driven care management well in strength in and targeted temperature product as and businesses. continued urology, to acute our be innovation continues in home growth new critical Revenue care

growth by quarter. growth Revenue in performance units. EMEA. XX in pharmaceutical was China strength to double-digit and the Slide U.S. Geographic Revenues moving in Now was markets the strong in markets and developed interventional emerging and and driven in medical for Europe MMS the third our driven the by and Growth segments systems, in surgery in broad-based

to the continue China in for year. double-digit expect growth full fiscal We

to the third quarter Turning which XX, Slide statement. recaps income

down And the our moving initiatives P&L, synergy mix. impact cost improvement As the a grew partially of X.X% grew continuous and as basis. excluding profit the discussed, offset on revenues currency of were year-over-year, impact by unfavorable comparable gross in X.X% the quarter

strong above as was profiles, revenue in impact lower as driven in mix lower average. margin a margin profile know the The quarter, well the by as which have gross performance products DCB with sales, company relative you

the within The and mostly full-year timing profit our we impact margin mix reflects gross maintaining are guidance. year

continue to anticipate accelerated to FX QX capture margins improvement synergy strong and we drive As headwinds as growth, revenue continuous abate.

was was a sales, which revenues continued percentage synergies. discipline reflects at Brad slower well pace SSG&A X.X%. costs as R&D spending a grew SSG&A percentage than of our of as as a of XX.X%. as revenue achievement

fiscal year, invest full the reflects approximately we billion to R&D, $X which in our continued For will innovation. drive commitment

in by Operating our was was expectations, as operating pressure ability margin gross mitigated profits in-line with expenses. on favorite XX.X% of

Our discrete our was as fiscal range We tax XX.X%, in guidance reflected timing these items. had range. due would these our the rate items occur anticipated the in already are quarter full-year and year, guidance of items below the to such, which is full-year throughout

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

are As not we have in included outstanding calculation. the shares discussing, preferred the shares been

year X.X% $X.XX per share basis. on adjusted of prior As previously earnings the versus grew XX.X% and a discussed, neutral currency

quarter, quarter. our XX.X% previously for currency the gross margin decline the primarily profit as driven Gross profit by unfavorable mix margins XX and Slide and Now gross and was margin in turning third in the was to discussed. operating

was negative gross flat had Operating margin previously XXX margin the a basis operating margin margin. XX.X% in was a of quarter. as decline impact On was expenses operating points the offset Currency operating in leverage on as performance basis, by discussed.

Now to XXXX year full Slide guidance. moving XX, fiscal on our in revenue

expectations accelerated half third in-line of revenue growth with quarter strong fiscal our As discussed, the for second in was we our year. and performance the

businesses continued expect in regions momentum We quarter. across our the fourth and

Company fiscal XXXX and a we growth as level our in well emerging have China. and segment our reaffirmed markets guidance revenue As and for for year result, expectations as developed total

Slide EPS year XX, also reaffirmed XXXX we fiscal on full have to our adjusted guidance. Moving

performance. EPS and strong we solid operating XXXX EPS revenue expected to fiscal XX.XX. expectations Our growth driven growth XX.XX to performance adjusted to underlying reflect at continue deliver All-in, by

our guidance. to detailed Slide XX, in Turning P&L

net We balance have our $XXX for interest interest The of the taken approximately lower to have expense. other measures full proactive to expectations reflect guidance updated our unchanged. we P&L expectations to million remain fiscal for XXXX year

and achieve expect in fully momentum have realize commitments we $XXX approximately in cost XXXX, and three annualized year feel million businesses we our that also the are over year to year to on-track across are on good our continue will deal very synergies beyond. we XXXX cost and in deliver synergies fiscal in $XXX We to we million confident about fiscal period. the We

provide will to to Now the turn update portfolio. you an our over like who product on call Vince, with back I would

Vincent Forlenza

Chris. you, Thank

by in Turning our segment. launches to Slide XX product planned

the we are There you, of on I been a we Company. a recent with about. touch across have few launches are number just had here. will things excited As discussing a we robust very pipeline

Starting BD BD as upgrades BD version launched the HealthSight ES three Refrigerator, System of X.X, Data achieved which Pyxis In BD enhancements and ES with and segments. to brings the system software, Deliver BD through May, Pyxis ES integration technologies. medical Pyxis the Track we through software Manager. well core as

clinical workflow improve enhancements safety. end-to-end medication pharmacy and flexibility These efficiency,

our are platform, gaining and from site feedback we customers continues be health our to Regarding very across positive traction applications.

the to Type on move insulin segment, I our Science discuss X we Patch Pump. like to would Before Life

As last the was quarter, we we comprehensive discussed had our FDA more than feedback we anticipated. the from on call received

of have R&D space, withdraw options. and third-party application work given through feedback strategic this on our we Based the FDA with we expertise our category, decided engaged product in to and this a have while partner this intricacies

progress. has with a as additional been you As timeline previous information provide we result, and we extended will make our

on Life Moving segment. BD Science to the

We launch core automation other aimed in large high testing of COR, diagnostics new are our molecular recent of BD excited the at centralized platform throughput and labs. molecular by providing

units Early of our placement and exceeding interest BD expectations. our COR are customer

BD Panel, We suite. the see as well on to platform growth the continue as BT Panel supported Vaginal as such MAX success assays by of our also commercial MAX introduced the recently strong Enteric

instrument Phoenix UltraTouch conventional success CPO IDAST well In addition, recently assay. capacity been benefit solutions. Detect with has we in MXX and from investments UltraTouch from received continued very systems button our collection have our driving Pre-analytical seen launched blood customers to with by sets. is push along conversion continues our our

our and high reagents, flow in performance strong protein see well AbX Rhapsody FACSymphony, to that continue improves parameter analysis. we BD multi-omics as solution and instruments as single-cell Biosciences, the Within RNA

combined In laboratories automated addition, well to repeatability instrument with provides instrument do clinical their tests. our when launched FACSDuet improve and for solution to continues recently accuracy the a the of clinical prep and FACSLyric sample

open for we are which leverages Within OptiFix a recently compatible laparoscopic designed and for device the newly hernia fixation technology use. existing is system. that launched segment, articulating ST repairs, we BD a developed Phasix and excited mesh an Interventional specifically OVHR, robotic Phasix that AT positioning And our

In this addition as that momentum product Fistula stent products and earlier AV in of see part our our well as year, WavelinQ as our System, positive market. all Endovascular category to the continue Venovo Covera launched

aware, below current PMA for all FDA, the working PMA the process. the our and as collaborative we submission us on to Regarding form. in the was FDA submission are Advisory have time PMA you a meeting approvable review been that knee, its Committee Subsequent review the our in for BTK not Lutonix our concluded, FDA paclitaxel, notified FDA statutory with

including evidence continue submission, the the collaborate with provide the the While additional on to review on data. and provided potentially was path based FDA clinical to determination need to-date, regarding forward we align our clinical this

the has no this extended longer As expectations our expect approval year. we timeline calendar previous and approval a from out result, process

We the will we informed progress. with and further make as keep work FDA you

a our about move Before I moment for sustainability, component which key of I to commitment is would to on, our a speak like strategy.

XXXX We our on sustainability goals to our impact the we These manage provide framework and an issues have our for towards sustainability most our FY achieving provides pleased for published Company. recently an environmental on how report, which the relevant XXXX social make progress goals. are update and

to difference climate and real have made ahead as resistance. anti towards XXXX change, believe are we opportunities we there global work and pleased are such challenges address to the make with microbial goals as progress a our We

addition, Campaign been to received to of LGBTQ CR by including acknowledgments In Best we diversity These we the Work Best have Corporate commitment highlight magazines for Rights were and the of XXX Places More Best Citizen several to recently, Inclusion awards our the list the equality. responsibility Human named XXXX, our Disability business, for Foundation, Places to proud Work our one to as Disability our success in standards. and Inn. and XXXX ethical inclusion environment,

and over portfolio consider will broader, stakeholders Looking also have shareholders to we more goals continue that resilience forward, not world. refine of the new ensure our strategy the will our the long-term, a sustainability expectations set only now and and but impactful our around around ambitious

presentation, have in provides today's this on understanding sustainability of appendix details information useful included again initiatives. the we topic. our you some with hope In We BD’s this important that a more to commitment slide will you find

to We integration base reflects and and confident planned businesses to Bard third Slide like delivered key in I reiterate acceleration. quarter today. achieve our messages across which in-line is the diversity portfolio. half second synergy the on of on-track ability presentation cost XX, of with we commitments. growth and The to from broad regions, was and the our Moving in would breadth our strong revenue Growth the revenue are our our

our continue reaffirmed are confident In remains of strong. the to core that expect and momentum our full-year forward we Looking our to EPS revenue we guidance. year have XXXX, and summary, fiscal remainder

progress with even us Bard customers. impactful enabling comprehensive for is more Our deliver our to solutions

Thank the call now you will and to we open questions.

Operator

The now for floor first questions. of is Barclays. comes from line [Operator the question Kristen Instructions] of Stewart open Our

KristenStewart

everybody. Hey good morning

VincentForlenza

Kristen. morning Good

KristenStewart

to kind concerns I is But guidance can of guess, in street. term and the one of want given of think into on it appreciate kind that you around with definitely give call color XXXX XXXX want investor's the to knee increase to being below So probably on just not just the off kind I having I update guys specific respect. that Lutonix outlook the expectations. the think any top start of and approvable that longer and I concerns only don't was

year how So your I Gore had for the growth. maybe about know about think is was model and help and deal Thanks. Obviously, changes how of been just and XXXX. just should the thoughts wondering, royalty we year that if the Lutonix, ahead you kind with also think the could that mid-teens I we about puts being provide has should takes in fiscal some there talked but on in takes? puts you

VinceForlenza

much Kristen, So to thanks say. I for very have the question.

We surprises, to get But off that. on get it surprised you table. on to are question write let's the if not have the

making want are and know XXXX We I good everyone progress to what you know. is to and

We are good on making budget. progress the

Gore with process earlier. going knowing a little that away, yet. on, finished started we are we We had early a we are not this But royalty

that and making there. And I feel are the we progress running really good we about the are process

little So to is with I'm that, detail. turn to it to over going Chris, he going give more you a

we good are guide we We But give the you of completely not making. going a sense today. to progress will are

ChristopherReidy

and morning Thank Sure. Vince Kristen. good

you things that precision next one too it's that there would guidance BTK. same the the with are is a right, level say what But as the I we of early exception essentially some are year, to for know You watching. the remains quarter being to message last will be give

X% BTK XXXX. able Despite to will we DCB expect And that and full-year for quo if X%. drive the to status even But worse delay, X% BTK the side, mitigate think growth be much is still intend it we would that then X%. so X% have the the if revenue to about impact drive possible. And still we at EPS, to on it we you to about don't as the of for as on

will all from we that. changes this, watch on anything of that barring unforeseen but bit little of pressure A FX, But despite here.

year. We our deliver to earnings in are growth confident very double-digit ability next

depend of next Where double-digit couple things we months. between that are that transpire on in will the

have But said feel good FX double-digits. what BTK before. out we we plays goes. consistent And that is with floor else everything where of we pretty where So, with see but will

VinceForlenza

good to the maybe all-in-all are ask progress, this I comment. give you us just performance to will some having Simon really X%. Simon on good you that So products on know, new and X% confidence some

maybe DCB area. want setting some are the the some So of other about you in that things talk to products these of off

SimonCampion

Sure Vice.

only to already and visibility kidney Chris think statements you Covera have WavelinQ So the PI seen mentioned recent the And I'm which the help on I will Trump will this sure ailment. business. serve of within disease on and - Venovo the

and stage another disease quarter domestically great in internationally. And end renal

begin BDI in where I globally, scale or the significantly particularly as also BD, very only the investment was segment, areas we think to to performance our of profile. leverage condensing is Bard its

by biosurgery businesses three great in continues and progress driven And terrifically well, So, prevention BDI. that we to And infection foresee part the we continuing internationally the home for example, domestically. the made tremendous care had And Europe acquisition. by quarter. a was in urology and driven perform within all new products investments that that as of

VinceForlenza

is Simon. expect as right detailed didn't deal products DCB thanks, on in whole just Simon is that is other The bottom you new for quite and urology We are So including the products, different. mixing of what situation. we models little is is line But well. going Simon there of saying a a the series new

that that range. enabling So guidance us to is hold

it. Kristen, for the. thanks, We appreciate So

Operator

line of Your David next from question Morgan a Lewis of comes Stanley.

DavidLewis

to for quick margins the Good just XX% and just thinking you fourth quarter, morning of once quarter two fourth one implies Chris One it XX% but sort Simon. midpoint. margins, get for for the obviously to about maintain me. Chris XX%,

So how up? year the get the on range and end should for about step do low margins that think the of you X.X we point

just And to end growth significant But quarter. into pretty of to the talked to low same get six. question into a on up step quarter you five the about it's Chris, momentum the fourth acceleration the fourth

So the bottom quarter? maybe your fourth and top for confidence

a commercial DCB Simon. the quick and the and BTK Thank commercial so right you And Have of the with decisions a update. the is growth? guys. of it much opportunity, for size any organization one then to level in panel the now size, just Post terms about made

ChristopherReidy

will start. Sure I

saying been to second half the the have the year. of is revenue that we clearly, accelerate going So in

in You saw continuous we the momentum strength that starting UCC and that happen QX. QX, Again, to in see we even further it's that in MMS have. accelerating the surgery,

MDS across growth is the which accelerating DS essentially and biosciences and business. is in strong

operating then that FX have we in So forget fourth in have away And we confidence the in on margins, we quarter. Don't the margins see drag quarter. strong that. don't the in do operating acceleration goes the

to see build. synergies FX again, - synergies continuing cost continue And to revenue and abates there. We CI

solidly XX% confidence we to within have get XX% on. that So lot to able Simon. guidance we and that of a being gave range

SimonCampion

Hi, David it's Simon.

been to the eventualities have preparing DCBs all as with we BTK and for respect certainly well. So

won't we details it's far here, think important for managers example that intervention any While provide wouldn't prefer territory I than more you the to they that business, recognize DCBs. sell

positive in seen And and uptake your areas. other we stents have

begin to much a think commercial So this sought as would we those, without great of obviously to of But organizations. offset affect to this not I have of move. as impacting as process, be the possible the performance part

VincentForlenza

still are it’s the to and where see course to changes physicians. comes the we out, labeling waiting And FDA letter on the

for So out. that we the will stay tuned question. Thanks how works for

Operator

comes of Hopkins line of question of the Merrill from Bank Bob America next Lynch. Your

RobertHopkins

you and morning. thank Yes, good

VincentForlenza

Good morning Bob.

RobertHopkins

help could can't of one just But one paclitaxel. lot a ask. but questions Just I on more

any what point, Just panel Do to you of you on new need you heard whole you what curious term after as or sense data in could trial whether from this meeting. the incremental might a just you have elaborate, helpful. there FDA from would however kind longer be you senses or just can you a think at if heard

VincentForlenza

BTK. You are asking on

RobertHopkins

Yes.

VincentForlenza

thought. I what is that Yes,

SimonCampion

its we Bob and interim continue we filed. data the information with cooperate did through I the BTK, here. we and XX-month And PMA would Simon. as this. that think work don't to provide in FDA month the provide data work we On well, six We specific

competitive it, that. and But to I I'm others to do provide low about any would a on confer think advantage specifics

are with a with them So expect very FDA to too it our active future. remains teams face-to-face PMA, the and not we have collaborating in here meetings distant

VincentForlenza

the data what that too. be. bring And will we To have nail down table to really data requirement to more

work the we for Thanks it. on continue to question So Bob.

Operator

JP Marcus of with Your next comes from question Robbie the line Morgan.

RobbieMarcus

in Thanks general. about for hoping you I could was strategy Great. around the M&A question. your taking talk

wait until target to way time down your you You with got leverage, deal. we the the seven times three, are all you at saw Bard not last

about Just in add how thinking the where you are add, space? valuations to what to

you I touch last to long as if were also, your Analysts diabetes. thoughts I just product This you of hoped. probably list area, turned an hoping And M&A could on Day. maybe in then the to don't you back a out bring think is innovations specifically There to as market. think on it was positive

future Just your on and a the Thanks your for diabetes thoughts lot. plans there?

VincentForlenza

Yes, to sure. happy answer question. And the

deleverage of the very little on we bit did listen just the CareFusion the rest did way politic of correction. First, are question. hit We a deal. have target deal And our you in before a your Bard the

on so meeting target So anyway, at no leverage really go our problem all. But are we as forward. focused we

because of what and M&A and Now, And deal WavelinQ, important as do growth have that, the allowance strategy. for we do an is like us it's to together model saying been strategy. that must made is committed of remain an plug-in the the part stuff part you we have important put seen we

You year getting doing should below next we that, three deleveraging over down times. and continue the move will we as that towards forward expect,

a M&A. plugging move dividends a be should And forward. serial then, M&A tremendous the terms strategically expect forward, we are looking share us and in at we repurchase and driven not about Company. acquirer, to of do we ability as are then we we thinking capability But, And our you as have to look

to want that? add to So, you Chris, anything else

ChristopherReidy

of but point is line just talked of conference have a we the bottom which we of when made is lot year, the next billion to Robbie, to debt, at of within time, same We cash would about to at back it in pay the that cash future is, allocate. presentation, we down up considerations done, that to be January, flow I back cash. a I the throw happened $X you using lot will your where and

we to But said to in that not active getting again, whole three started are going have to up the cash sense strategic once build level that, going to start on going some gotten down and on. portfolio Vince buybacks, will a in be of M&A about and move what leverage. talking tuck-in building we we are start back let balances it likely the it is, sheet, we to more more we be balance as to share times we gets across back the that And up

And fact that we are we about up transaction as we before and our made live down correction, commitments, well. times very to to we this the that because proud get time committed the that would three Bard down leverage in three we we get going we to that the And into did CareFusion are to moving times deal. the leverage

VincentForlenza

and Chris said, portfolio plug-in to obviously, Pump. the any Patch we here. committed other run, that include So, entire In across the M&A diabetes, remained could business as short the

see well core You taken as have for in priority will as doing investing number opportunities. where as that comment a question. nice But the heard one the work continue the we development on that for on that that we of partner the some we to thanks and business

Operator

ISI. next comes line Kumar Vijay Evercore of question Your of from

VijayKumar

One that of you. a sort costs, comps, tougher we the guys, Thank X% ongoing given just of regulation, taking implementation QX, Hey X% is the an where in annual my during on are imply QX question. cost, from coming is the QX? I us X% have going acceleration MDR place or can at walk you of to rate second XQ, end the questions annualizing through And the that. incremental if the organic, and are you for thanks the housekeeping lower the first. the on

ChristopherReidy

Yes.

hard think So it. to it Vijay, was little hear at I the got you, time, but I a same

accelerating and for are seeing QX bit strength we five went from to the looking and, some It's in bit where are of on before more seven. products we little talking brought I to more about have were little You market. new that the revenue a not we a through much

WavelinQ continued Covera, Venovo very are strength helpful, in to UCC.

to we great we seeing the see accelerating this in are growth saw it diagnostic in systems. is expected you and quarter. and as MMS, strong as results biosciences MDS We from momentum

of we have the that forget, quarter. kick some in towards this Don't end particularly in revenue synergies fourth the year, back

And So the gross seeing it margins, that I about is come are where talked from. we profit. I think,

in that the mentioned rebound. some items of I remarks, in fourth away quarter saw As and go one-time my timing we kind prepared

Not CI to FX, on profit and operating and mention ramping. not margin. see both gross a being synergies headwind, We

and the very very message similar quarter, in and saw quarter direction we are fourth we what last moving said you the quarter. that So that the I to comfortable to direction that with third continue and expect

VincentForlenza

in we that So is the Vijay, only the mentioned I the to markets rest continue emerging of would for growth I be to double-digits, already going add double-digits strong. thing expect to be the is that China, were we to year.

and this that with business That We on and have partnership of team impacting be don't stuff business. great Ministry products great a going with tariffs strong there there, expect a retail the environment to a Health. is all extremely We well.

do saw, feel strong entire So of you the we EMEA, that. about the to We it good very rest for And expect course, that Asia. of about good And year. was feel this quarter. double-digits

that continue to too. expect We

from of geography the So and side the side. a there lot in both business is drivers

ChristopherReidy

think tax, it the our do would XX.X%. points, of be range to we upwards fourth to the gave. putting I two other at for intricacies then right towards in lower closer is XXX about add million, expect clarity, prepared expect be we as Vijay. We I tax middle just to other would I remarks. mentioned interest There in in and lot quarter, quarter the that rebound will of was guidance saw the a us of middle you That range. but this lower the And

VincentForlenza

Thanks for the question.

Operator

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

LarryBiegelsen

thanks Good the taking morning, for question.

on on one Just Lutonix, one China.

questions on been expectation kind and is on indications have FDA and are since comes lot guidance of the seeing the your updated the a there question Lutonix what on current So FDA panel But BTK. you out? of once my

comments some heard we why and all you help products on us in Maybe understand And questions backlash question. China this that and the But taking against you potential there China here. continuing your U.S. Vince, Thanks your have the of any why rhetoric there. I confidence given just getting are domestically? in investors impact confident about are could noise won't for growth from

VincentForlenza

is that. Yes. DCBs. handle of I what then intricacies Sure. handle on the going will Simon And can

So what have with happening on China, what is this as trade situation been I side. whole happening through was mentioning on going with trade that ago, been is the just they in a versus healthcare our very keeping minute separate on what has is experience

health the think And I number more and the priority of system strategic over this Health recently in And Ministry that to environment. care a six reflects that in past continue the is hear to months. from we one, develop fact, what

We conversations, have explicitly they told us have that. where had

first So it. part of the that is

The second better in System ago. funded China team Healthcare of it or the our was part year it years we than ago and a now here had is, three is

there so important slows think on some as in China, positive that economy the to is the And them. rest going of momentum is down I

then it's that in really our China thirdly, the what organization. of not organizations in we do positioned commercial we of and have we investing And But fact are the the with just portfolio terms and well China. in it's

our about well. he been we plants is with four in to continue China we to Asia. invest John working for the team as Tom invest very We in continue and in I DeFord know closely China, have is excited And behind innovation that, portfolio,

XX-years So, over we there. have built partnership a

we and for to commercial there. China very very, And with he in just what also that so is are environment Tom the done or not well that of invest ready be add. two we difficult, has And and organization, we are positioned have things we aspects one got another that like a would we hear But we will what to do that. fully expect different think and

ThomasPolen

morning. good those we localized, have China this the high automated in devices particularly there volume Tom, Vince's we to small Maybe majority made just the add in to in locally. Larry, that that investments manufacturing, make medical thing good is that that one today the over China, of disposable sell we XX-years, last overview is highly

cetera, behaving and acquiring engaging local high relatively actually percentage, local those importing, actually materials a can low local communities. in Employing et volume where disposable locally, that. are we So are there we competition, be associates, raw of devices, as local in our particularly

competition. China as is of where be So where much moving areas into we more BDI, on manufacturing importing the et are that such BD,BDS, as actually would cetera actually not local and or somewhat area there the well. of doing unique In we a some

VincentForlenza

Yes.

the so on Simon and intricacies DCBs there. Okay,

SimonCampion

So Simon. morning Larry good it's

think, in I industry a as and happened you panel here did know the forward obviously collaborative really and June in So, put the I foot best think nature.

seeing of think but a that of only paclitaxel behalf associated not I main role signal paclitaxel, on areas many are speaking and within with of these the also other in the not spoke was that. physicians PAD,

on last to last point due to have we And that the upsized in that has FDA, expect think communicate look their reduction, it the about doctor any everyone barring forward they is continues quarter continue we as to letter. with here. as that XX% and I think call, work refine seen I remained approximately What we we unforeseen at roll should

has in spoken Chris to new are BDX the outstanding products with total surgery the spoken are But about I with as urology. once and and again, funnel launched have performance just X% products within to that in and business PI with new DCBs of just

I are forward. as think placed much the offset as can moving headwinds well we to we of

LarryBiegelsen

guys. Thanks,

VincentForlenza

Sure, thanks.

Operator

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

WilliamQuirk

good Thanks, morning everyone. Great.

VincentForlenza

Hey Bill.

WilliamQuirk

for A Chris. couple of questions

additives can for expense. like just earnings the maybe Just, lower the full-year. elaborate to you interest Doesn't on should be

just now? secondly, out MAX durability of on, elaborate just guidance you didn't have figure So the offset where would quarters earnings the the guess BD several trying given to seen change? Thank And growth overall care strong you. the I'm to you that then I very is,

ChristopherReidy

Sure.

of the third offset We about saw So to $X.XX it pressure we we of in additional the $X.XX pressure, that already was to pressure. actually used expected FX. of be And thought interest more was the $X.XX, like than would in saw quarter. reduction you some more about it

the pointed middle the rate that quarter have of seen back that you fourth is you why to fact in tax already range the the to for of to some and that the So year. get goes I the up

year-to-date the third the it closer and XX% It's year. quarter through to now we be XX.X to the for expect

offset that was and see obviously, an lower. is So you that it much

the So the question put get that has quarter. is right third together pressure. there year that we I when the where you But that are. despite put are you back you we in pressure, range no real FX for think And our was it model, and to all holding

VincentForlenza

Patrick. Okay.

PatrickKaltenbach

Let this et as have and Panel we we cetera. north before, Enteric the me again, of strong on to BD said the of comment Panel quarters MAX. And the growth XX% NDP was the by north we quickly XX% in saw quarter it it's access and driven

the long panels a there that BD we strong pretty pretty we in is on demand, have And, again, has more and out confident MAX. high business. So this building growth runway, are

VincentForlenza

to new a want launches, you I COR, it the of on BD one mentioned little on as more anything that. color Patrick, add product maybe

PatrickKaltenbach

Yes.

assay initial happy launched days, we Europe. we Europe. just are very seeing the drive interest, are here. within really And COR our the building It's on and hand one we the BD seeing platform we on because from business demand our panel. So so early growth in it, competitive are we think, just future still customers have a far And we with in out we will but are have that we really,

have we a approach. same COR out as will build BD said, the have I and report MAX platform we BD And complete from

So the can the cover and COR acute we lab. both

driver strong very for a business. has it So

VincentForlenza

for thanks Okay question. And Patrick. thanks the

Operator

Rick next Your comes Stifel. Wise of from of question the line

FrederickWise

Hi how good Chris morning hi and are you Vince doing?

VincentForlenza

great. we morning, Good doing are

FrederickWise

tech One about a to I that. like and med always, to like quick your Vince, I thoughts question. But one I'm thoughts and hear like one tax. guidance. ask the hear curious And to as always would politics just guidance your

a fiscal the to why saw look like I think multiple accelerated sounds going fourth fourth and quarter. look you is third good - quarter are clear a it making and in like sort we that for lot the growth minimum of fiscal quarter and reasons abundantly

not toward some guidance that there quarter. guidance. Any your to most I'm hit had has are would upper you to dramatically would have understand Is be to full-year upper X% to variables do or the get more the it have would to seem you remotely Maybe you me, that But post and help color towards get end us What challenging fourth the end of much possible comp an how understanding. or happen appreciated. that single-digit of upward year.

VincentForlenza

out, in six of lower those flu guidance season provided the we calls spite towards the the of would played past that drivers that those because have the five pressures. of We as because of in end are to biggest range DCB, be of it our guidance

X% the the that to for So X% QX of guidance really low implies range. end

to but a out blow get just you top, makes the the take it as businesses really with performing have strongly. content up to real So, it you are mentioned, difficult. the as would But said, that

ChristopherReidy

well. over have this for the the fact I well about strongly Yes, are DCB mean, said would even quarter I performance feel to about businesses good we delivering less BDI BTK impact. with potential X% next We well. in and the that been feel And impact, DCB talked we really the X% as X% year and the to as drive about the impact the with ability

a range, we tough had have So blowout last DCB feeling was get to against incredible. that the about year's a of flu season and the to would momentum. know good was we have and order because ends season that we compare flu In are high

VincentForlenza

Tom. Yes.

ThomasPolen

morning. other good Frederick, just to there. comments that one this add is Tom Maybe

and year as was area very is comp about the good I biggest growth. QX strong one the QX are going last saw right, last you mentioned really You in and believe year's mentioned, into feel QX we the comp being MMS from we momentum Chris of

growing question in the And has to which at we the business, you the But think to add strong pleased expected that that think a unless comments be I'm surprised continue really got Alberto haven't MMS see in significantly one are any as MMS this there. number well, quarter, momentum business. continued of And to we in I other which I continue. we is the of things above reflecting market

So.

AlbertoMas

quarter for MMS on plus, But in we installations, been here normalize - timing the ongoing momentum that clearly the by some good it side reflects just X% for overtime. have very Yes favorably side. growing business. will last we and pump like of an Yes, be this impacted

clearly, year strong over last And very jump ones are X% into to we drivers expecting in We the the but Pyxis. that past we growth and had rate QX the in we given of mentioned a terms quarter good core quarter. our won’t grow had we Alaris, high platforms the in up are that performance will

just that - are we of what sites and momentum analytics that and as side driving the this we to shows by really The to have interoperability the market the where integrated health approach integrated it an already And acceptance platform XXX offering platform. live.

VinceForlenza

really business well. Alberto. question. the is for great, thanks really, And Yes, performing the Thanks

Operator

comes the of SVB question from Your Richard of next Newitter line Leerink.

RichardNewitter

Hi, trend here. the very is two on thanks strong. have molecular, for the questions. One I growth double-digit

either of terms up is just saying what following momentum that are to on they where would panel, here just they and used some is? or kind of share? I in market happening And and where back second the love question What had And what of the close It's take to much my respect also improvement, of double-digit utilization view something saying how customers growth of to You competitive to it’s continue to strong to to the rate. question doctors guess it think are business of performance drug-coated would put be is implementation level were in versus your balloons, then in and levels, what I the customers terms underlying hear the get post pre-panel that the levels the FDA your going with to that do half study. panel? be. Thanks. and and

VincentForlenza

Alright.

So come to let's DCB. we will back do molecular then first, and

PatrickKaltenbach

the Richard Thanks for question.

the But pretty our growth big as probably said, is one strong, it's BD molecular, contributors of not only MAX. on you there. by driven So

at look would we say clearly are I taking our indicates competitive very that If right market growth some growth. you now. share

the our, segments are using look for example beneficial hitting it's Given on model more that market you confident in and have, we terms we Enteric, they that us. on we also is are that are in very is the we using for multiplex and right not target approach are if assays strong as a again reimbursement - growth of and our also

us. definitely market taking for to would I share points say So

VincentForlenza

DCB. on Simon Okay.

SimonCampion

DCBs. to respect with So

begin to out needs benefits begin summary to the market - with that FDA says risks for outweigh statement and the come the the think to rebound. a I to to in

like customers right I Dear the feel Dr. now are hands our their with think tied

in reflected and Letter current us, there others but that just XX% in a the decline too. with from about March XXth business, not is with

see time. need one is in if and sentence, recovery profile think on that the benchmark benefits I of you prolonged for they risks recovery drug experience the period over stents coronary profile to reflect can back the in outweigh eluting system, So the you

VincentForlenza

a years, back. took right come Yes, which few Sam to

SimonCampion

for Which have same we more took importantly, patients see was the of for way then scale the the that the it the holds options letter will to But to a contents serve serve. before the way we Dear remains that These what And saw we patients this the us. few Dr. years. not treatment available

Letter.

VincentForlenza

can know say This just here gray little bit. we There answer a to that probably come lot the black don't that situation. and where and of and is is So white degrees a of FDA not out. will what a exactly so

will the we before I letter, say will an mentioned FDA, And an on be also we updated very Simon input, input that. shortly, with are expect get was to updated forth letter a terms of industry should talking in given what KLLs we exactly coming giving think lot about. has of Simon

healthcare some that where would more see agree are great product why to have industry And patients. to comes for providers as So the is with waiting we this arguments important Simon, so out. I made

so And Thanks out next we question. couple will days. of that plays for how see the the over

Operator

comes of UBS. Taylor question next line Your of from Matt a

MatthewTaylor

for taking question. thanks Hi, the

commentary at So clarification a and I on on your year synergy. just question DCBs had next

on-track, in are when or major you That right? on correct? any snap core about there impact that is not no business, revenue like And is un-surmountable the talking Bard from are grow able is you reiterated So back Is predicated then it to impact real right synergies, X%. that to when also, DCB sounds X% DCBs. being you the

ChristopherReidy

Yes.

you So right. are

about As through XX% we assuming that think holds XXXX, we are XXXX.

back snap that. no So in

Okay.

XXX. are that, synergies, mention this way our target. to cost on were million year. $XXX synergies right And we do the we the did well We will On on

revenue I think we a from synergies as well. are on-track

So.

ThomasPolen

this Tom, little give the just is a Matt, bit color to more revenue So synergy. on

our very that area, areas we brought integrated three the seeing both team. are shared across and have before, in midline the with Bard pick the seeing catheter and business good we access vascular we momentum are we So

see last the in forward the into quarters, that MDS I confidence year, next gives continuing of of competitive And and half say was in the are would us now year. seeing really the number in business, you particularly increase two that conversions, so going which exactly we going that in an this strategy. performance, our fuel the to back

We our seeing benefits business. the are in surgery

that salesforce You in made are prep chloro in seeing this some investments combined Europe. and the of quarter, that play the we out Biosurgery that infection prevention actually

We that are infection we seeing have Biosurgery of investments made. Europe synergy because those in and growing prevention now strong double-digits

significantly, expansion particularly in had well. those we seeing invested course, of geographies Bart BDI China strong in other third geographic beyond are growth just the then, markets, that of as in area And in

so, synergies revenue continuing in being for year our and very momentum confident XXXX. that feel this And we on-track

MatthewTaylor

then COR Okay. could follow BD one And a be product really like up, drivers. sounds just interesting it the

Could talk bit little think general. how you about had little on as today, MAX? on but your that a comments with could you it more are it have builds big a You some they product be successes overtime

PatrickKaltenbach

Look that. right. take can early , days, current I again at Yes, revenues it's still, are

We are ramping the product.

panel Europe on in it with it. ramping are just We HPV the

XXXX. said, As this in I driver revenue for as XXX,X a is

platform, we lots I also this revenue worldwide. coming when think see contributions it we have will from available of

especially also platform. We within of taking pre-analytical care think given has, it platform, automation it's step the the attractive the capabilities a very

we nice contribution it's XXXX - diagnostic business. services the contribution think our This and year, in we will very huge and So growth XXXX. a a revenue years making definitely And contribution. see in

VinceForlenza

Thanks. Right. Patrick. Okay. Thanks,

Operator

of Jennings from line question Cowen. come final the Your will of Josh

JoshuaJennings

Hi, good morning. Thanks for questions. taking the

two Just questions.

an salesforce the your the more for atherectomy the pullback. the I on terms platform. wondering DCB views on just on peripheral business, of leverage about was need attempting First in to even

just was and the acquisition, the in is that had system development rumblings pipeline I a in within pipeline? case still that back the there prior to Bard its to a think hear wanted to

Phasix to be is to wanted on the very in for wanted just the mash. secondarily, well. seems controversy hear And questions. non-receivable around the businesses, the positioning? views just hernia Phasix of synthetic doing to hear taking There And and on some market your Thanks thoughts some

SimonCampion

here. in its So our date. I until we NPD Simon give comment launch a funnel actually specifically are what is wouldn't commercial to in ready

atherectomy. the As category every you know, the and space, exception PI with PAD within plays in of

I we keep obviously close on on it's so. But do externally. further internally eye and that something a Company So wouldn't

happened long two because comp at hernia, respect ago. last, the the hurricane I so with QX stop hurricane, again referring to years can then versus the last that actually And

quarter So we had in a very strong QX. underlying

grow above performance your do market. context We to continue continue of Bard our And really with Phasix to well. the business

data three-year continue which of well. released We version released Phasix. Phasix, We do have really another on to just just

great Vince As a new incorporates positioning system. which is to mentioned, ST And OVHR, a start. Phasix that off

And tremendous released again, we feedback recently that customers. system has far a just new articulating from fixation got thus our

internationally. and So in to we leverage domestically sales hernia continue that can very to other ways and do well continues that we team we have for look that

So should to we that in expect continue that vein. see

VinceForlenza

questions. Josh, for thanks those Okay

Operator

now Vincent return for to I Forlenza you. closing the Thank any comments. will call

Vincent Forlenza

Okay.

we were plan are about thoughts, that. across So regions couple strong businesses revenues all and the let very up. the of me with this acceleration our half in-line wrap excited A second

And year continue our EPS momentum shareholders. for the confident revenue create on continue fiscal to we customers expect the reaffirmed patients more our as and XXXX guidance. and that our final deliver our we our and commitments, Bard model, to or will at have We deal I'm value and year approach

questions. again, Once to that thank have much. your very we updating built. business exciting around look We you you again forward Thanks for this

Christopher Reidy

Thanks, everyone.

Operator

today's Please Thank disconnect teleconference. wonderful time your a have does This at day. conclude this you. lines and

Monique Dolecki	Senior Vice President of Investor Relations
Vincent Forlenza	Chairman and Chief Executive Officer
Christopher Reidy	Executive Vice President and Chief Financial Officer
Thomas Polen	President and Chief Operating Officer
Alberto Mas	Executive Vice President and President of Medical
Simon Campion	Executive Vice President and President of the Interventional
Patrick Kaltenbach	Executive Vice President and President of the Life Sciences

Becton, Dickinson and (BDX) 6 Aug 192019 Q3 Earnings call transcript