BDX - Earnings call transcript Q3 2020 | Becton, Dickinson and Company

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Operator

Hello and welcome to BD's Third Fiscal Quarter 2020 Earnings Call. At the request of BD, today's conference is being recorded. It will be available for replay through August 13th, 2020 on the Investors at bd.com website or by phone at (800) 585-8367 for domestic calls and area code (404) 537-3406 for international calls using confirmation number 3197917. [Operator Instructions] Beginning today's call is Ms. Monique Dolecki Senior, Vice President of Investor Relations. Ms. begin. may you Dolecki

Monique Dolecki

safety Good today review and We our to distancing. approach safe. everyone Stephanie. taking are joining more also a hope you to us continues virtual With and healthy to third our be mind, morning you, we thank again call everyone to for that in while Thank quarter social results. exercising

Chief Officer Financial have and person and me we Tom Vice Polen, President Chief Executive in Officer. and and President; Administrative Executive Officer Chris Chief Reidy, Joining our

segment. Medical Joining segment; Executive by and phone Vice Executive the President we Interventional Simon Sciences and have Patrick and Alberto and Mas, President Campion, President of segment; the of Vice President Vice Executive Kaltenbach, President of President the Life

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

our is make cause During actual significant recent that today such impacts today's there particular filings. to could the about businesses. regarding the fiscal The will continues information contemplated are in differ we differences that includes our results quarter call, SEC duration and appear forward-looking of and our possible in our Factors the we MD&A we in and of be seeing release could pandemic. third In COVID-XX providing the uncertainty commentary that are from expectations. trends press it July sections statements

in we forward. business that as but made move certain our assumptions could We we how managing are have change

over website. in press A pleasure the call on to turn bd.com copy its financial the the accounting the Reconciliations to be can with schedules including measures Relations schedules the financial and posted in We of performance. release other the related GAAP to is of our details non-GAAP is now adjustments It will include also the financial the slides. Investor some and our to discuss measures release Tom. purchase that appendix of respect and my found

Tom Polen

and families morning secured I stands summarize for the U.S. U.S. we Monique BD announced care. with customers be made I the medical COVID-XX executing several the continue team proud continuum across What We third quarter exited shareholders. capacity is the manufacturing well critical areas. we the you, as of our critical future collaborations progress words, medical At same technologies to resumed expand to of delivering on strong orders your throughout the for those procedures will had everyone. And given for I'm now quarter. position Thank in and and and saw the we're Veritor, you growth continued our performance launched worked and two BD customers, impact. and the they hope COVID and our and in very doing strategy, campaigns, value our savings in on of pipeline, would innovation me the device sight procedures from out to Okay. and it ensure our they help quarter. closely long-term lost never product QX advancing increase the good vaccination for delivered emerge in steps taking executing to best put initiatives. of long-term. agenda as team government execution simplification the staying healthy. time, the the confident and pandemic the us long-term We challenging our the to If I'm cost driving and the injection are most short environment. creating scaled both patients, on assay team supply to the We

jump four. into quarter the Let's on slide

Chris and care testing. saw biggest the and topline to started results to quarter it's sequential from positive strong year-on-year procedures. June, segment, in quarter and anticipated procedures month QX. impact each pressure significant of non-urgent hospitals world the way. starting impact in negative we and largely level million performance more QX share improvement provide around saw lab detail we played on net and elective healthcare that had our quarter support related the as growth COVID-XX in all diagnostics BDI COVID-XX on of research In see portfolio businesses. on and with is we're our me a reflect China the the recovery. of All-in But $XXX high parts seeing the resume COVID-XX Interventional of as impact Across during third demand Our delivered we'd negative COVID-XX We during a perspectives elective on Interventional. patients going summary the routine out that for let what three

continue We in approximately volumes procedure at closely QX China along further pre-COVID they're We watch post-COVID levels. restart. to since BDI seeing their exited of XX%

strength Moving really Care Systems pleased high on is the single growing year-to-date and in as to systems our Medical Diabetes we're business view insulated Pharmaceutical more and impacted a basis. less continued business We on COVID-XX. businesses the which with the digits both segment, pharma by

across so segment's June. we're initially more medical As of device demand that closely overall the the tied the naturally rest consumption, had healthcare improve saw the said portfolio medical encouraged portfolio hospital for was anticipated. than device you impact utilization to we even is we very lower consumables so consumables know of That pronounced in

in as throughout for demand then under and down necessity spike tapered April infusion early quarter. expected Lastly, pumps the did medical

expect deferral offset Veritor work as Life research which at side. with demand solutions strong demand by we the portfolio. the Now, capital closer continued very strong a COVID-XX on our looking for saw and the as tests the and diagnostics diagnostic lab well the for as In both expected, routine addition diagnostic quarter in COVID-XX during of Sciences, was to QX, supplies the of delays investments we assay

demonstrates applications researchers to did to into labs. clinical up we pick get addition orders continue research which In that reagent both for back June and see begin in the

Despite saw for providing guidance total as EPS accounts we we solution. in we're the challenging on COVID-XX today and environments and capabilities the health BD stabilize June to position Based close portfolio have expectations for durable and clear trends year the dynamic our believe on reflects taking and I'm been range recover. to the industry continue a it's will know through pandemic QX we've continue and customers been as and actions the we out care near-term and growth revenue we that of well later improved support year our detail what we economy confident the increasingly the vital care to remains will and call. global visibility. health part be July and critical and this more BD's a the have Chris While our that as into go And situation guidance to return the

to Turning support on enables five, response the quarter portfolio agenda world's to significant call, full us care. executing BD's well across positioning to our with made continuum we last discussed year us finish progress slide of team the of The to during the the diversity how and COVID-XX this momentum. strength BD the

six. me starting share on slide a So, few with highlights you let

real Veritor care very strong antigen than launch to demand reliably and is first and Veritor strong changer, minutes. July. the SARS-COVID-X from Readers we a we've in today month system, our In the we more as First, interest month received in customers of which a for testing game access including in since traditional demand indicator we entire diagnosing COVID at near launch We unprecedented XX accounts. testing. month Veritor system dramatically SARS-COVID-X platform Plus the early shipped is Plus received one nontraditional launched and In real-time EUA assay for since the expanding point of point-of-care assay SARS-COVID-X for of the This the well both COVID-XX this FDA, believe marks first as the do an normally our year.

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Before I X of to growth want on pass Chris, and it the slide I other briefly drivers over comment and our strategy to empower. simplify long-term

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most to ensured line, to bottom strengthen flow to we helping these addition significant our the In efforts opportunities. investments

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XXXX expect next element this operating discipline today's you'll announcing goals ESG approximately XXXX simplification that four deliver sustainability look empower, As internal strategy. to initiative we million in our our in impact. and report, resources of is impact lastly the later with business goals Recode XXXX you our We're quarterly forward the maximize FY our progress updates savings find years. All-in, And And we proud as year. We the to deploy $XXX sustainability focused Project in reinforcing comprehensive our released on our latest of team can presentation. appendix best I'm remains our against that fundamental recall in how is sharing we over our always our that including sustainability can a progress of the making. to July,

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we While I'm confident best challenging taking Chris. term. over we're turn environment, position With continue call navigate steps to the a long will for the put the me BD that, let now to the in

Chris Reidy

and like pandemic. the to BD's to everyone. some ongoing regarding response Tom, comments good I'd Thanks, morning, COVID with begin

evolving very associates. needs of I'm have environment changing the First, our our adapt organization customers of proud to to and we as continued rapidly and

We the associates as the have responded customers to ensure and their they and serve continued also agility with pandemic. patients well-being both and our of safety battle strength and BD to our best

we COVID our for capacity related test meet diagnostic solutions. on we to MAX increase are demand to includes This Second, platform strong continuing to demand. continue see where BD our

around on launched campaigns. also global vaccination And We syringes the actively grow point-of-care support BD future ramping of system. our rapid continue orders for pipeline and antigen our we are to Veritor needles to test efforts recently

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billion our on the $X.X billion Following and we $XXX outstanding retired loan the in $X we had equity term revolver. May, issuance million both the

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Moving to XX. Slide

color quarter. COVID by Before in I third the like revenue discuss to our impact some I'd segment, on performance the provide

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fiscal to resulted quarter, of in revenues. a million gross these headwinds impact $XXX third approximately our During

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China's recovery to continuing closely. watch We are

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have strong BD how for of both and As they to clinical we our demand our to test up for working expected Biosciences COVID-XX. Veritor manufacturing demand in diagnostic recovery testing will of we antigen rapid the MAX earlier spending. seen I on lastly and test Also continued activity assays. And and are on scale our mentioned the Veritor research and we depend as scale normal continue BD we anticipate platform quickly point-of-care up Readers in pace to of very and our capital operations levels business, strong

for April. at on slide things updated quarter I'd April, When results QX call you'll comparing our time COVID highlighting been this We I'd to several the moment our businesses. our impact to the move we of fourth has moving This and the before COVID related speak shared we spend quarter earnings slide like reflect quarter our like two and XX, slide for on to year, across trends to May month on of during fiscal Slide the which saw third those. of the to impact. with guidance to to that you Now depicted the note the to third a

quarter the First as shows an to improvement progress. April the versus continues of the recovery month

trend rates to exiting XX% a approximately businesses recovered our third from another were to month that saw May our We and our started third exited into had was COVID June we is June of pre-COVID business COVID said abate the May or below pre-COVID On impacted the impact XX% impact quarter, expectations the see the range other headwinds with that we in MDS $XXX sequentially improvement XX% worth Note our versus expectations. in June. in saw April. the average to MDS versus quarter to July. In from of noting business point. pre-COVID XX% to low XX% larger routine the pre-COVID quarter XX% saw procedures, to to in improve. million. in where COVID July approximately rates We expectations. to total We by June versus in Recovery our were in approximately XX% encouraged hospital tailwinds to started way of across testing admissions month the July and a versus improvement elective and sequential recovery expectations XX% The

on and rapid strong early our continued testing COVID-XX Veritor demand seeing also for BD point-of-care demand antigen for are test We MAX.

continued of was pumps as medical capital under infusion large delays expected necessity As well as in there amount demand installations. small for a

we into due view of the on are XX, we slide despite a our and year Turning variability seeing the revenue the EPS for to the what pandemic, continued to remainder providing expectations based are uncertainty and today.

EPS $X.XX expect low-single-digits and to and between we down quarter, fourth to be adjusted the revenues For $X.XX. be

a EPS As XXXX. negative a X% negative of full fiscal for of decline the to year to a and revenue result, $X.XX a we $XX X.X% expect

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questions, we the open messages I'd the key summarize presentation like call today. from Before for our to

we to respond patient in capabilities trends uniquely diagnosis leveraging challenging continue and our positioned June. quarter be to reflect businesses results research, across COVID-XX First, and third environment, our our core to by encouraging a dynamic care. across Despite

the demand Thanks, Veritor. now open BD COVID-related year into long-term we range know today, headwinds strategy We and to have patients our around shareholders focused high for we full as up value and call results. a have fourth to we world. tailwinds near-term quarter driven for solid by lastly, and the what guidance the abating executing customers for be improved improving expected established are visibility remain I'd to appear on like our and And Q&A. continue and on the Based deliver their on our to fiscal

Operator

with questions. now [Operator floor for Weinstein Blair. comes of the from Our first The is line question Brian Instructions] William

Brian Weinstein

guys. Hey,

Tom Polen

Good morning, Brian.

Brian Weinstein

considering tests demand you're about to month come your million that news Monday on between the market be in There's or consortium, good the on per bit idea give an -- And it's question. we guess can be for taking there. taking market player to from? deal start we was more for Can next coming a on the other going start you I'll out more Thanks beyond could surprise, Thanks demand and by about the Tuesday. us thoughts you saw little spring. about governors' what morning. I talk of where No from. But saw HHS and XX seeing where size you that the the the the and from antigen. And that the

Tom Polen

morning. This Brian. is Tom. Hey, Good

said mentioned ourselves. states account. to So as And certainly seen is announcements the recently earlier traditional had supply have our tests see demand antigen on to for coming as mentioned the before, as Nursing from homes least. I we certainly customers, the call, at use healthcare and think well that in many acquire foreseeable would exceed others, us demand rapid settings. as a by we non-traditional accounts. been been providers strong We've expected, out there quite looking from I as other come in is has of Demand, themselves. We've non-traditional future

coincides testing XX-minute gotten think traction. value over the that really awareness of increases probably increasing so. I'd And the rates country. in COVID near weeks has we've increase across of that real-time say I with the the couple more even last of also seen

in But would a instrument more So across than month our to is I shared ship broad as track And shipped that are again, side, we traditional mentioned, demand supply on segments. the first and we've we've already demand, normally both our on in strong plans very, plans before. year. non-traditional ramp the very which both the

Brian Weinstein

in little Alaris, rates the about about evaluating things for a we you're and kind July here here? out, recovery pre-COVID those you thanks seeing, the Great, give when that to play some considering line especially on goalposts about how longer-term about being start trying And extended currently as us we should things talk thinking about COVID-XX around to how can on in of be think and XX% just and bit that. thinking think thinking XXXX, you time that could we based things then, other XX% be you factor XXXX as expectations things to of out? mentioned some play about about at could Can testing what

Chris Reidy

that hesitate probably to that. This with you where for time give about start Brian. good This procedures questions remarks. end better that's that. up with utilization have on think does in because two is I'll top was obviously where following we a June to Chris one to about and elective off, and next May. call things guidance is July the giving June. a talked of seeing call. it tougher get hospital than than a this any this of about we're And was Sure trend. better of at near-term the sense we Clearly months, our and year we normally tough when do visibility, year prepared year the We We're but even indications. a

XX% where the it get you calls Does it hospital So, utilization range. to indication. there? Those that that XX% out in at, make. have tops that's XXX%? a stay good that you back are to Does But see to

the and margins, about approach November we'll are clearly monitoring high strong call. the think from XX%. COVID we you as be obviously So that's variable headwinds decremental When a that impact

with year. more of the And to And a then then, see see that. to continue that recovery, T&E, T&E. going seeing carry tailwind. traditional of at, from expect Those that we the that headwind we're looks pressure. certainly COVID as right from headwind quarter. beginning now -- the and have some like but one FX a down, lessen a it's this the it's into impact in the some of year to about, of favorability with looks some Resins, will the think over slight some next over see be we stuff increase And time. Brian. so, from on And like for continue and some year comes fourth lapping We to to back might that But are as and a push people we'll that slight have on then And look XXXX tailwind. coming to investments work expect of kind we you would that little virtual we'll tough would questions, of to call can are things bit what the this that into the start year. full lower we next Thanks early. as may

Operator

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

David Lewis

Thanks questions. taking Good Hi. for the morning.

Tom Polen

David. Hi,

David Lewis

quarter? in the stocking maybe obviously sort I then of does if COVID impact such comment to just that you the some the that comparable help Veritor like have headwinds are third the impact a tailwinds we had of then we follow-up. And some What I model. quarter. Chris, in us of And as consider. quarter wonder drivers interventional quick and But guess, into key issues the recovery sort to And of better dynamics, on and some things us net the harder I could have understand for of look $XXX fourth fourth million.

Chris Reidy

Sure.

we can through June seeing you that and see said, abate are those So trend as and July. headwinds we

expect would a and and significantly, down it's million down So have -- $XXX at that level. but to headwinds headwind so the come will we there we those XX% be that go do still

transparency into given think, you that. we've I of So, a lot

And have the compare grow is And so, that we and MMS. a I that's think, year, people quarter biggest MMS The to would particularly real point record at a over. I tough mentioned tough prepared million; the models. last as in thing remarks should help $XXX I quarter have remember, that had to the in that, with fourth that in the

And COVID being margins that's the so, significant. the XX% decremental that, impact, on with

other hold, in will is on it we generally, again. if that remember we're that the continue quarter and you have. the that's expecting demand other us into to about quarter. Alaris not fourth certainly necessity, And to Those is, think impacting the medical what ship third quarter. that the COVID think The be the operational the I are about investments drag there the thing was

quarter to we that look the are that at those get fourth kinds to gave. of in So things guidance we the the

David Lewis

think, The then, factor kind is consistent Tom, of, But months push a following prior And September, in our with here, your to what most just question sort quick investors biggest submission? on you safe which outstanding kind pump confidence in can timing level focused are of the the the market. the with on of what's six bag are I return versus testing, Thanks so of, actually Alaris. expectation. is, deliverables Okay. aside, a And much.

Tom Polen

for thanks Okay. question. the Dave,

So gave to as and we visibility quite than submission we submission a in before, for did last, the -- and timing when work better other May. update required you we we completed and the bit mentioned of we testing much a have I have

with the I of which initial I pleased XX different as data We think testing, factor completed it. human we -- part we've tests, the did and other phase. our outcome. we're human still the of is from the have testing, and XXX% Again, a described, factor formative

set testing. to next is that to a stage, got we've Now of progress which broader

us. of little completed. of system outstanding to We've that's the We've the Alaris every retiring That testing the most We on the submission. retrospective of that a changes scope, as anomalies. that assessment risk complete. XXX(k). So completed still been other risk made work to change closing have significant that's bit since original that out almost -- verification some the we on software the A front is based initial in completed have see

testing from is this until course, team a is of and released all is being tremendous Of But of to complete. a amount not going working to the agilely -- be software home. that our integrated work that's testament

other and I area is, reliability testing. V&V the think

made on progress good at testing on tests. we're protocols. components types in feedback we've we've -- And set overall but of certain of fronts, we the there, selected -- progress from on our with pleased await both we're FDA begun the So

point, project, more is the testing of this -- testing path it's at so, And not for front workstream overall it's on critical but that necessarily still a that's us. in that

to bit remains. Just a testing color more little that give of the

thanks So, the for question.

David Lewis

you your of to timing Okay. aside, confidence, here, Tom market a pump can return regardless And safe timing.

Tom Polen

product. in of don't confident very submission. safety We we the -- the Alaris on as And the said, very advancing we've collaboratively remain I working been this with FDA

making. we're we progress So, that good about feel that

David Lewis

so Okay. much. Thanks

Operator

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

Kristen Stewart

Hi. coming was just a I the different appreciate about I you've had just we else. capacity parts as going coming that about and parts everything talked how out next of as some just you've gross moving we continued you've my wondering, as decremental taking you've have pressure and the then in, lot that we FX thinking obviously we talked of balance Chris, but think Thanks the with resin assay forward, questions. should margins moving for seems modeling, about, and with kind even about and it about should Veritor of online the here, as about think takes talked particularly quarter some puts about XXXX. and think but margins,

Chris Reidy

Sure.

XX% continue the we've looking you question, where And And well. the thinking beyond out on the could leverage. in that when COVID. there's as we the gave thanks of range. to margins kind to what, charts you the Kristen. We're So to quarter, able for that, also higher from from actually you're remember see drive third costs shipping know decremental QX the In XX% been that we at broke it margins impact continued

underlying impact We'll XX-ish well range up we we'll why -- of continuous mix earlier. well, in we leverage investments COVID to described mid-XXs. still as some that have through impact have, the as in quarter. have of as get of lessen our we So to that's percent that lessens the as so that some fourth from continue COVID improvement. to drive will kind that, as the ability is the And And the

that QX fell lumpiness that but lot to of other them So tax regarding also I you One neglected discrete XX% quarter. is, to XX% to the you a rate. that the year, were third of in saw into kind thing of earlier Those anticipated for gets mention our the range. items question the

keep QX of would preferred And you're to EPS also then, dividend expect that's and as fourth see to the to you modeling what the a So you the that range. mind, quarter, high-teens tax $X.XX in kind rate. $X.XX leads and shares

Kristen Stewart

like And that Okay. XX%, a to then, as reasonable a but seem think lot well? whatnot, there's with a Obviously, recognizing about number jumping about we that off going to... to a COVID XXXX XX% point think point, and to reasonable forward does as look as on

Chris Reidy

certainly point. on. a that's think reasonable I is But lot There's a going jumping off yes,

on why break So to we're that various trying that's trying down we're you contributors. the chart to -- give

big that's abates as can the So XX%. -- you driver at impact COVID a

of over about Recode underlying feel improvements So and will to Again of number a And fact as as continuous an as think improvements that It that of improving. had companies the that a is starts continue project starts drive good continuation basis about and away we're we the and really that years. we've coming. able the of we we on simplification continue the goes it again, synergies. mentioned, to that the through, combinations

Kristen Stewart

much. Okay. Thanks so

Chris Reidy

question. next you, Thank

Operator

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

Rick Wise

Hi.

Chris Reidy

Good morning, Rick.

Rick Wise

Good morning.

Simon Campion

morning. Good

Rick Wise

and Good Hi morning, Chris. Simon

like You're me going about I'd be say, fiscal to surprised to talk XXXX. to hear

Simon Campion

forward first a That's looking.

Rick Wise

you might shape. but are that normal, have around guidance things, XXXX thought, And fiscal but and how Becton. my think things Chris Tom I products, term I like us a think in gets that's volumes your do on company be actually the we thinking the maybe kind thing not revolves Does question to -- year? maybe the actually that more really is top things of more low hopefully it reflect you what I'm just cost returning, little know, optimistic. as growth, all double-digit or back all about more think expanded reduction efficiency, a new reflect the Recode, is line normalized testing, return and little that or a longer mid-single-digit growth testing recovering, year think, the of you're vaccine if about Project better would I a more a XXXX, fiscal the we said. right, little because better Becton that How XXXX normal you, -- economy about when of a seems more line. assume return we you to I sorts to that and looking a if to do be for may fiscal reasonable bottom Or XXXX, year that normal --

your I to think maybe, interesting be that thoughts. hear it'd

Chris Reidy

I'm different. in be going take a I'll absolutely at Sure. will start mixed the with chime is XXXX to bag. then, a is And Tom that. you're very his right. sure But view. And compare

getting drivers you XX you towards, as think of we the the go about in very what five about XXXX, the as five it, much a basis. on talked to on think of about on sustainable plus And still So we're focused growth the plus all plus some and the bottom. on top that

really good designed on kind are business, the the digits of we sustainable growth And on bottom, the to on to plus things kind top. So get Recode sustainability get the you underlying of of us to mid-single like feel five kind the of that about XX% that, basis. a multiple

the had. we we've the we impact of of extremely where of on lessening. back underlying that is well And good all to that, performing in And feel the level. face the fact business it about basis, feel good an about kind is So getting that COVID that

abating. we we those headwinds said, As see

we to be what somewhat. have of that course with the will seen on been the of continues just out you've today abating pandemic. that some But could over And so in that that change, XXXX tailwinds play obviously how increasing. seem that change Now again, We're into based the does calling time. the see much and of

Tom Polen

Chris maybe was I well think, And said. that very

we company. opportunities areas thing and but world, our I think and through Obviously executing the like running executing the we're our not Veritor the vaccination our Rick but on is, helping strategy. only -- campaign are short-term maybe are much COVID, we MAX only the it add managing very could much I long-term around very

or middle see. very development we're example been that going on scale, the any continuing they improve year, even products of This the to we've in. making just finished base, just our this And delivery and the of supplier is that's is I continuing pipeline And the which we those year, all year. to work strategic doing on-time deliver, much track. better areas that proud the last in through operations so, very They're product imagine for new this give again best terms on of are a it, continuing And tough we've adds how have. to continue again profiles of that make to we're the doing team they're despite manufacturing start we're Really milestones. think us year executing we're that they're we we that. managing our like on to preparing those our team than And sure forward. portfolio interruption A to past, executing there’s on on on-time watching suppliers segments. watch the economic and We're our adding with We allocated incremental And savings. really allocating chain. do very that, suppliers team in challenges We've in on well COVID can And our our no on how our focused -- during astounded. they're huge that as for complexity right executing we making review. as and pipelines sure large how In and you performance going plant the resources those went year-on-year lot supply COVID. or in in backup is COVID even we trade-offs, in to opportunities improve going executing We even been had that investments our CI our COVID. And new Recode, returns be incremental, programs And I year. And about the improve. I've focused routine mentioned. on this track of to shared growth

that the so, managing takeaway from much at we And discipline, maintaining that, high COVID time, so is navigating discipline with our the same of on the and level long-term while strategy. are hopefully a execution very

Chris Reidy

And given agree into you -- would different And from for through and what to as we you'd fourth the us the of of uncertainty We'll can the slightly that the perspective we I to gave been add high what that, level so too that that coming only July out, base just to on from we Veritor level be great example. count We've clear I on will transparent. is a I thing coming think quarter a, transparency. is, is go the third very what quarter And business. it Veritor. what's clear, pains break from very expect what's very navigate in as from hope

Tom Polen

And MAX.

Rick Wise

disclosure all The Yeah. there's appreciate and something it. we

out. X.X post-Bard capital leverage quick Maybe Thanks mean said, allocation? was understand Just your the what's lot. you what's Where just I Last there? June heading? leverage you help could. latest XXth. follow-up net for a thinking highlighted And as a pushed on times if Chris, that quarter reduction all timing us you are

Chris Reidy

Sure.

our of really a to standpoint the changed nothing's intent from company. So delever

we've net right the gross off where with feel net fact it's leverage to leverage, but at time, down that is to deb. at. work will about continue focused But think bit time. the that pushed leverage we're little on We're the has pandemic, a I discussed pay been we We continuing down same the now, as the good that over cash.

invest we've this hasn't uncertainty products, standpoint. firepower So And that example. as and really invest --we We'll cash feel that see in positioned like us things that time for in to of the about protection liquidity a new from in gives talked really well changed. Veritor

firepower to that. continue do cetera. of fuel And acquisitions will us to et M&A tuck-in so It it the gives

feel the about really sheet. balance good we So

is of really The feel hasn't allocation as overall off We've As through everything. about our dividend. changed. news example, so dividend. we that we throw lot continued about We've you XXXX our increasing the capital we history do and good a a of come cash for out, long had think good

that I the buying to the a look hasn't really is when this back cash will generation going think we we us us well. overall changed. where day period. start pandemics us I allocation can that of leads And the get point behind forward capital you forward as can and and expect to shares sort again. --this come and from strong through But to that

Operator

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

Tom Polen

Good morning, Robbie.

Robbie Marcus

supply here? you in and take the potential but the over you year come haven't can and sitting how frame to Good base and on big against the morning. even months. you're -- next guidance we up XX into next next COVID with over year can want know all the antigen numbers of test next the latest testing what's Veritor out do months MAX should How fourth ASP quarter I thinking We your your revenue really for as so? for case antigen given or XX-plus

Chris Reidy

I'll we million have about the talked very on be So and the XX is tests the is fourth to million clear that --just guidance what our tests. in is quarter, start with XX

fourth said that's that And that that demand term ability level. turn for it what's I'll the produce we We good to guidance for strong. feel But the Tom. longer our at quarter. in about to the that So very is

Tom Polen

assume we've ASP tests we fourth the as right And about is we July quarter per Yes. $XX historically. which had the at test, million -- through think September shared what we the shared about in XX

the going -- the its be timing pandemic XXXX, intensity number duration COVID depend As you upon cetera. et about of think to the will one factor it's of obviously and vaccine

Those will so at per the us month the And million million The are we can end up And be focus that utilization the We I on to --the on right then in we time. want at of of -- of by February. that XX end for evolve. it's be as those the numbers. don't tests we per we'll think more to September. -- than this ramping month production is point most of tests X comment is appropriate at think determined things percent that

Robbie Marcus

follow-up. a maybe as And Okay. Thanks. quick

now? should allocation the right most the portfolio? your offensive sellers for view briefly to was appropriate to What's like? view some you this that of come in on be current potential before out answered during but M&A think have do latest you the capital you would capital go up. are What on Part You on there where raised quarter. firepower And willing there that environment the M&A

Tom Polen

Robbie. Thanks,

has past, portfolio say, historically. course we M&A grown in of a we've through just of would came inorganically. the company exist many been in evaluating part that to in have and Vacutainer the how BDB shared I licensing the So from to as we've acquisitions in are of businesses tuck-in and of long Bard Tuck-in always --much BD's history the

we won't large We're accretive would dilution opportunities have look what across very, any We're looking not be to very zero looking we've deals we're has have looking very and done back prioritize BD We're deals. continue on as three and doing at focused clear all of Bard. at. in segments much in interest are and going the in interest made at we deals. not to been tuck-ins, We that any very look We at at We critical which all. --we zero time has those. at significant -- is transformational traditionally

in we're from our areas the we're looking key I'd far as those some and say we where So Specific Chris advantage leverage businesses. looking add? those We're I've to are done really portfolios out the competitive we've three criteria And as again of at. and have aside to not strengths rounding over of at looking areas shared before, segments each existing time. anything

Chris Reidy

fit .Those deals. four are Yes. other for -- the looking We're standard than capital that businesses dilution. to to of a greater not emphasize at. And non-dilutive the lot kind look returns the a our strategic strategic in first metrics in foremost But ROIC than fit. key add year there No cost we of and core nothing of are accretive metrics and

Tom Polen

Robbie. Thanks,

Operator

with from question Evercore ISI. is next Your Kumar Vijay

Tom Polen

Vijay. Good morning,

Vijay Kumar

my million, go away preferred the made saw revenues dividends on could share Chris. The question. for taking QX? obviously a QX. maybe count Tom. you for question be tailwinds cleanup the comment guys in Thanks think also remind just a expecting QX? on XQ on, decreasing morning, for should count. in Perhaps, and QX $XXX Chris. really preferred Good One, morning, I And Are us Good that dividends pump in share the you for you what just we tailwinds

Chris Reidy

of part first take let me So that. the

XX make so $XXX mean, the QX. in just up And we're in gave to clear We number quarter that's around million. So I we the net modeling the million we last area the in impact to --Tom with that million of times do it said XX, tailwinds expect $XXX go the Veritor. $XXX

MAX Alaris million to --I to third fourth the to quarter BD And in expect be down as -- from think would --medical charts impacts We we expect noted necessity another expect we there. $XXX we the quarter. out you to come be

with to back hospital we're So thinking where about count. when models but it out the your seeing a QX elective that's And utilization our the And you in use abatement your last question --I up abating think normal the could but still net missed that million. part kind little share is. of was of and $XXX all bit the in of that procedures, headwinds going not you I

Vijay Kumar

the then. the your on can the stepping Veritor look it? obviously, for to that of, number, tests. helpful we it antigen numbers, Is way you little these feels on feels up dollar outside Street test. the like more are you capacity XXXX? The right for what It like prospects comments incrementally on at antigen Thank one orders of bullish Is Okay. guys test. perhaps fiscal said us. from there math Tom, on stepping -- sort that That's a But for And Chris more you. a extremely do for just And monitor that. saw for could just bit XXXX antigen the syringes,

Tom Polen

demand Yes. mean off I strong today. on On product the that we both strong -- month we've antigen say seen as the on only strong -- tests, mentioned have bat. anniversary. we're very think, very It's tests right what's I extremely Readers demand we're fair at to the themselves. antigen that a is I And literally

minutes. three to how don't this wait clear four don't two very how now. to wait days, have days to very, a is -- is this system on an sending COVID of effective durations. a and And on think need you're system type just I turnaround get testing there's work person is a there I And right need what's that days, up samples depending time day out, know value -- within doesn't people the think want I I high to testing that answer where whole high want can those you the if getting XX

that's the approach. So is unbeatable that and antigen on ease -- of there testing use

a range on -- engaging we've customers right wide a very So of focused we're that. on been

this. life I scale-up base infrastructure mentioned, deploying we've but just right of have -- the product, and logistically applying broader resources making company opportunity this As so Even of not of the the sure we again BD that right on the we're capabilities customers. full the support we're against out of to volume of the sciences, behind shipping and

But So that's disease one it. that long no XXXX a as be prevalence antigen it knows exists I there's to fair again for answer I to a think expect going need tests. approach high evolves and to as consumption the that. would rate from a through How

Vijay Kumar

Tom. syringes, Just the on

Tom Polen

I And safety that's from months that one to side. that are shared as right right? we have On last Yes. call devices right to parts shared selling we over change billion add that was had in only no other in you -- Safety the devices. we and have of out syringes next XX the ASP still that orders on heard devices you we conventional U.S. but have are of number a So a We we capacity than the see devices. higher incremental gave XX what months. the mix continued coming units always did we still gave to a not the opportunity devices we think conventional number bit had historically, us relatively world. call time -- said we this in

to units overall, right we're months. that XXX orders But time. able are produce XXX right right million XX how steadily. see evolves over XX the you -- those over billion one see line. And that to over at we'll So in can track well million mix to quite next on or months still units to starting be in come We're

that answer.. think I

Vijay Kumar

Yeah.

Okay.

Tom Polen

Thanks, Vijay.

Operator

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

Bob Hopkins

Great.

Tom Polen

Bob. morning, Good

Chris Reidy

Bob. morning, Good

Bob Hopkins

Good morning.

just two have and questions thanks. them I'll upfront. So I include

in just testing was Given was to COVID other total thing the -- be kind revenue COVID in clear QX. was focus could wondering of then testing guide? And the And testing what I'd total what on I the is if you revenue decline, QX assumed the the love kind one incoming where just The it's below that report and is about gotten e-mails you decline. an XX% on guiding year-over-year this QX of to way I've anything than year-over-year earnings comment else is more Street on $X.XX are that

of mind today. the or modeling. year-over-year And on to call and for decline was a The if $X.XX mentioned could just I that below you of sort trying $X.XX those what that us if are the that wouldn't bunch down kind summarize break you you've so Street was leading So things to the $X.XX. of of, factors wondering But kind just,

Chris Reidy

Sure.

me QX. on was we was let saw million that COVID-related $XXX That MAX. the in testing first the So your of on part start question

So think and $XXX about $XXX necessity million million on medical Alaris the thereabouts. on or MAX

full up or that that at XX was million we're in that On we running I if is So MAX XX. can we've x you think of the of $XXX the expect capacity take. million QX, you talked be so QX the about we tailwinds Veritor million give and because in $XXX and to million $XXX think million then going were talking about to add $XXX that

So you to kind the $XXX that's of $XXX thing. million gets million

So second moving part questions. the of to on your

I a fourth quarter. single we're think revenue digits in decline of the still the seeing decline low again kind

MDS QX folks driven the particularly very the been in missing was. much had saw was COVID you utilization impact hospital by that what something is business that in I think and

utilization to we pressure. better although because would expect is that So continue under it's getting still

GP. you revenue a so we that decline of drop that do low And expect single-digits. decremental Then at

we're the quarter. forward. very the closer were in are fact in And to It's not in a that's charge that by the XX% of the point in I in And range. capitalizing are high-margin that then again range. signaling important products of it quarter. time. building absorption impacted we're And XX% things that's these really COVID. doing that last we call, this We're very period think hit being inventory this addition, on come variances to kind right it the coming terms of during you're And not inventory, a because got carrying you've in building inventory that not as the taking of and and testament

making you the doing and of Veritor those would So kinds would what to well. that things in all we're and investments those as And range include of, COVID cleaning anticipate is those big a continue. the scale from MAX. Obviously work terms the But PPE XX%. you up of will we're gets part what in it to addition the investments

we're And so those are investments making. some

models about that $X.XX would $X.XX, I thing the as is think rate. think the your we is compared -- be that's the tax we QX to And fact other the earnings that the news But acknowledge new would -- FX there. The what addition and probably drag from expecting we the I expecting was tax what was we thought were compared about of to benefit at in think $X.XX. have what Street twice

third quarter isn't the changing. when Then about the for The for range fourth year as you you do quarter. I we're tax in with our think though that line for the kind So the rate Street think of

So that in just tax fourth quarter. high-teens assumes a rate very the

that you So the plug calculation range then into we're where gets you you kind of the and I think at. shares in all do that preferred the for when of

Bob Hopkins

detail. Thanks Great. for the

Chris Reidy

that Hopefully helps.

Bob Hopkins

Yes.

Operator

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

Chris Reidy

Larry. morning, Good

Larry Biegelsen

the testing Chris. morning, actually on taking question. both I'll for testing. morning. Thanks or guys. just them upfront. One ask two Good Good on Hey,

on that's call, or don't kind do can margin operating know know, is of relatively this is bless if As high. you the incremental but we question of margin not, the people would have said believe. XX% I math potential I my also sales. on guess, people kind we a the what

strong. quite could the be high, is So if the EPS contribution demand

how let question long-term So is. know this there drop bottom control then once the flu, I $XXX about per sustainable opportunity? year? long testing questions. this And we don't under just, you term is How to taking think is Thanks we know similar be Veritor the that will my you for But Tom, to for versus the guess COVID is Or which reinvesting? should greater line? about why million reason any have is a of kind COVID could I

Tom Polen

that but shared. last let is they're start we which company we've shared the higher then Chris past me the can we We're the Veritor, point. the and question your I said margins, we're the continue margins have of comment in So probably the what by way to think have with to than specific not that average discuss comfortable share, the is sharing which to

think So difficult again on COVID for very the at long-term opportunity in testing, predict I to point this time.

to is vaccine those still --if have you of up. a something be a area heavily. even continuing we're space lot we like if more will as diagnostics get upfront invest around get and now, to lead think say it's a focus it's in point-of-care right for you indicator company the around like flu, I that we then the annual something of understood will commentary an to susceptible is it's instruments certainly vaccination get couple And you we because I vaccine gets COVID. upfront that demand to get you're every quarter. annually. a have of this shots to going now think a the that we uncertainties, and it I vaccine. I for coming lot a very that to see shared a --is investment example of my Because just forego things an and of permanent outcome What a attractiveness that different still clear you company I of These then year are Is Are I of of point-of-care think, of in very Veritor eradicated term polio being placing to evolve. the longer that we're there's vaccine? that be earlier than We a the obviously it year think it can things, have that pre-COVID this will in and you area that instruments first molecular saw and think the going look acquired if that

will of other you broader on testing that there the tests Veritors be to people of And strep think in Veritor? out could footprint last there an regardless COVID for unknown, how would bigger be a say opportunity will is I will the but using create available evolves flu Veritor marketplace, will more out --how they will of COVID long consumption of use be market. permanent those I faster I area are COVID. I to to a COVID People think results want bullish understand be an societal Point continued do shift care we going after were increasingly say, all are to a before happened. think on that have of And than trends as now. more that, overall is are they

they interest. too have a understand when when now to more a the they you a testing answer, wait to did lot people, lot people And result of have lot really the when know course, get value Of that understand point-of-care you a think technology. days I lab --understanding more because to need people pre-COVID, of than you also

opportunities it's that could for in long-term And well. larger in to placement continue Veritor see we an to course, we prevail a are of that near-term so as invest continued of investment. we trend area some due And new base. do then the continuing as and technologies space see that And

Chris Reidy

the to of say, would to the it that I the margins the here have is said past fair in question, be back your we company higher than margins. part think first and And

of the in kind immediately numbers expect quarter, you fourth This and some the short to think I don't term. the I quoting little rich think to can a ramp fourth production me of get margins quarter. you're seem in particularly us to those

that --the those of think one. clearly not that practical, are some company but margins I get So average. building assumed day the higher seen we than That's kind have models to over just margins can to I've time

Larry Biegelsen

guys. Thanks,

Chris Reidy

Thanks.

Operator

the Sachs. comes line Hazan Your of next Goldman from question Amit with

Tom Polen

morning. Hi, Amit. Good

Chris Reidy

Amit. Hey,

Amit Hazan

Let think just pace time from we're just is and know quick even cited there to a couple just if a relevant PI on here. you we one to and of ones. like testing the of whether things on mammo that seems late what --just It but not similar sense ask wanted into the I very to first routine me if about diagnostics I recovery? get the getting you, running revenue? you all insight oncology even elsewhere. have And any downstream procedure to recovery

Tom Polen

We that. phone Yeah. do on we Tom, me Simon Amit. with actually have well. start --let This the as is And

for specimen on have it recognize XX% more we IVD a July one in I'll testing we comment bit impact you I when about testing been laboratory-based presidents. that little to ask business Obviously, know more Vacutainer now moment. see diagnostic testing of a to the testing from we indicators before it COVID our the very some infectious business, was to because of that just the lab very I bit non-COVID disease the is well national other segment information about IDS look One with underlying our of course and than XX% is comes diagnostic in did they gets of that, on large overall and June reference our and in Simon, And it's But in to gotten actually going the side. terms at mammographies which business share we volumes as is that Veritor. delayed. see in MAX to testing little that, that diagnostic procedure of get an that that a collection areas all forward It's demand are signals the improved we that one demand have testing. say piece closely that fair think fluctuated oncology We us both a in more correlates

well. there. we'll have so from with we've we that, see there they the improvements business increased Simon fluctuations And July labs. what much as with our we the in some But about see right reference more see would you seen on national maybe to very procedure think around impact June what side? further comments the And PAS commentary match correlated as

Simon Campion

Yeah. morning. Good

but saw the an see did over sequential growth well. we we oncology impact with certainly quarter, So month-by-month, as

were between But impacted actually So a they're implant completed and a of business. gone PI we information the customers cases And oncology. slightly interventional or XX some also recently business heavier a volumes it interventional saying is what of of mix oncology. biopsy most a And patients survey. other our -- our are are that look rescheduled also ports got these volumes of -- they've which that next or surveyed in the than the as we've to that good new that we've We to their office XXX as customers outlook XXX was is have they cases. like is and are rebound either what into office parts And saying involved and oncology positive to beginning over XX interesting in days. been treating

well parts funnel impacted positive the as So the as while reasonably remains earlier of it certainly business was impacted for oncology other too. during outlook was on the COVID

Amit Hazan

doses inventory That's obviously demand -- for size. the there's going now of same on risk They're just that dynamics per Tom building actual than time. little be vaccination two vaccine understanding companies syringes if just a great. ahead that bunch whole at And could at And you I'm suggest vaccine Obviously, several of for one can. population a I better. generally. could multiples that data, greater bit

You've in to investment obviously obviously and months. one over comments biggest made next XX taking in --syringes synergies player the XX And incremental the the XX the you're syringe world. again the today months about billion Bard the

with devices COVID we for is syringes vaccination? challenges to heading the injection are So for regard question supply

Tom Polen

incremental we've -- the mentioned received don't answer way a million we've that that We truly to units' it on to gotten Yes. units, one as demand our is that. right? And this can't say demand I as I are when point to billion the same. visibility mean I one we remaining fair we ongoing know. the orders said worth XXX right We of don't that got units At we've billion that. supply just

And so is another factor. that

normally. to on we consumed is And that. all syringes incremental And this have course, that a a a assuming of vaccination more basis. year would make strong units. sufficient provide billion we're billions make We campaign That way one base that syringes of flu than then Of units global to includes we gets that.

the have reallocate there to for And could so other base other that base that people I is the choices. wouldn't that consumption in we're all large don't those say that's market right purposes syringes will syringes People if remain But -- people make providing the to a as true normal know well. would syringe that. of

current can right of say we in the from now visibility demand world capabilities. still governments our So that's around is what coming within is the supply

Amit Hazan

Thanks.

Tom Polen

well. It's something obviously question. closely we're as Good watching

Operator

Larry question Raymond with James. of Your is next the from line Keusch

Larry Keusch

wanted to of go just provided to that line I morning, back Alaris through everyone. good today. just to Hi, kind you think bit the Tom time a and the little relative update

about factor I an out sort were came then the I of this how pushed first FDA And issues filing. and about up sort when course came human of of you again. early the that talking fourth think testing recount given with pandemic challenges as quarter

thought square about that what initially better trying Do just as you're deeper puts the doing incremental something sort in a than to the Is position. discussions there got we you of you you changed? you I'm now that think into So believe testing need that to revised FDA? with more timing do you

think you COX. end the about of talked And the obviously the observations it? of sort into manufacturing as also does facility line play the time about You tidal

Tom Polen

question, Okay. Larry. Good

indicated And So always was that obviously we do recognize that the with and and to And end have our pandemic impacts shared QX original would has right? was we that first-off, that. on testing. the -- assumption that had pre-COVID of ability it we

given by I shared versus of we and had we and of the which that update quite given and As submission update quite bit upon testing we now completed we'd when bit And we case. much had an we've time that that have our the today. line May in testing we've the that done is shared better visibility the felt a it's that a basis have that would in

on I'd David's testing through been some the already I we've that well this other testing on answered it done earlier question completed. topic as of as that's was human testing think I As factor walked the

incremental understand FDA feedback. things, to have with we of terms the their have continued and dialogue In

get strong part And FDA we the collaboration aligned of been process that's with and really on testing. it's our that's think important process. So the of to is a the been something very part that the

possible that a comprehensive submit map in we're us be on give do certainly we one position others. thing -- is But XXX(k) decision before again the which development FDA our make our module it the where position the is may So product in that that that. XXX(k) there we when in as the ultimately module. in possible that technology The was an able development that as that based timely approval that we did that in the FDA from to with to one actual the enabling came working as put and as best added be decision to we and so EtCOX in made thing I development hopefully is in we parallel to is out the of the are update a as make feedback job mentioned but that road include in

on best being in given decision ventilators medication mentioned include is in, having I to of in it monitors and administered. module generation And we importance As the felt the filing. the was that agreed this it patients FDA the while

itself that the not on there specifically. that is upon say XXX what resolving XXX(k) is would the up items, I XXX brought the contingent that Just you submission

Form associated make been we that we've XXX(k) separately continuing what comments on remediation submission been with our maybe so on is mentioned have our call. work efforts I of we a just And that can that XXX last that the couple from

to a voluntary That providing includes this comprehensive announced. and of the to the field action another FDA June that addition already taking we we've at week actions. response earlier In begun end initiating a

that field take when which support process way ever care minimizes important best-in-class And program the disruptions to initiating action continue to and provides going is to including improvements pandemic. in so COVID-XX patient given we're more than and to changes our actions necessary the customers a

And health dependent I before our to behind providers. on the XXX. resolving I timing every patients the before to as continue be stand filing the and safety said which clear as product care provide item in continues benefits not So, XXX(k) the said to clinical we of of to significant is

all We in parallel as XXX comprehensive appropriate to to taking we actions also observations. ensure resolve work submission XXX(k) the that are

Larry Keusch

That's I Thanks. all had. Terrific. Okay.

Tom Polen

Yeah. Great.

Operator

Your with question next the of from Matt UBS. line is Taylor

Tom Polen

Good morning, Matt.

Chris Reidy

Matt. morning, Good

Matt Taylor

Hey, for time I line. Good the ask taking Thanks and question. guys. one morning. about wanted the morning to installation good progress

a wondering that that and are in been improvement appetite tempering do the hospitals what the will like. And allowing large out you any not called funnel looks of up You capital the there's the cancellations? Are installations relative fact some when pick I'm just lot you think seeing utilization? of there. to

Chris Reidy

Sure.

true certainly installation. May. to access where So we saw clearly, -- April was was that in that the the most facilities and and And

I certainly think saw And commented saw that be June well. better. getting we we in that we in that the July case that to as

So it appetite any than has we've more related of thus lack really to -- far installations. access is seen what do for really

that deferrals. any We haven't than other were cancellations seen

that something this that's we outs going Certainly at seen as that. seen But haven't about I It's we is so the talked yet. this forward. stage, our really about installations itself -- And at watch that haven't just manifest point.

Matt Taylor

on that then help Conversely these hospitals impact from of to Is some And spend you think stimulus to areas? that. COVID-related there you things? being encourage to follow-up do negative given demand could operations, on it hospital the in continued just on the

Chris Reidy

what's And hospitals of cash I bridge the a a Yes. from lot that's Clearly, standpoint. think helped that's case. flow

think I that helped programs from certainly have standpoint. those So

absolutely. So

Matt Taylor

much. very you Thank

Tom Polen

Matt. Thanks,

Operator

with of Jennings Your next question line comes from Cowen. Josh the

Tom Polen

Hey, Josh.

Chris Reidy

Hey, Josh.

Josh Jennings

Tom ask about I just morning, to China. and Chris. good Hi, wanted

the they're ahead curve the of COVID in terms think of recovery. I

like guidance XQ? China what's quick assumed to fiscal one Anything in The And follow-up. us you in help the division-by-division just in really just XQ were fiscal business You impact China. in quarter? down the seems anchor then can XX%. China have for biggest understand then fourth fiscal guys was I medical And do

Chris Reidy

Yes.

So I across our it positive mentioned one we would and prepared remarks for think BDI in I is in that thing mention we example June. were

China mentioned in in the mind impact watching medical that some seeing closely. area said you very And are also as so procurement. have have do that China we are medical Bear segment in there. we we we the And the of recovery we the in that volume-based

impact see I is -- businesses. remarks, and Really across we of news some continuous said we thing. also -- see distributor continue procurement. the go But continues. did in outside through the as on happening destocking that, that China to that that. impact we recovery volume-based prepared that a of stocking no in It's That we improving think So our

Josh Jennings

And April that medical then you rate tailwind on XQ. COVID outside your was pump mentioned just in of normal necessity Thanks. the was called It I Great. run quarter? million the call when on around $XX the fiscal on in for XQ business rate necessity. fiscal a Is run out that quarter. for fiscal believe the the XQ you the tailwind medical

Chris Reidy

in in we're because no new. I medical we rate April, That on to something Yes. of it might I'm run mentioned, think quarter is as have in I And kind not that noted I mention there said, of sure much think necessity. did how the in million what for was We normal kind the think necessity. there was. we you're range. referring I was the -- And million $XXX medical was $XX range quarter the

of everything we're anticipating we're there. than in so significantly not resurgence of and the that's not And May I And but quarter think function And were obviously anything fourth April. in significant a much and else, lower terms and June -- medical necessity. too obviously, expecting

Josh Jennings

Great. Thanks.

Operator

the from is Newitter question of with Richard Leerink. next line Our SVB

Richard Newitter

me guys. squeezing in for Thanks

where to you color point this comments what trying type much. there? care, can if that to kind probably that of going a demand highest where have for demand biggest very this of elevated Thanks levels get the And Just for feel you test? is any Or on this uses of of Just use. for I'm any have high initial what curious initial sectors the you types of of you very economy? the where is are question. give one seeing said

Tom Polen

Tom. this is Good Richard question.

of of the before, with and traditional engaging demand had I where lot As And directly. broad our is given a customers sector them we traditional is who us are it course of are a course to -- customers coming also often customers this we this from. shared of new both

and and types about locations. of hospitals think clinics So those

typically couple homes. testing from in are you Normally X would with not We areas. distributors them it's COVID broader We What broader see we states it demand Veritor directly through. But be that are so HHS a you do testing. a a color we us -- But schools strep How leave what the approaching employees to helping can nontraditional mostly you test. course normally major come are that that traditionally and customer or a if as are days strong know to there and are you a acquiring they kids says you that wait sell I've get what really for kid we as if doing and result? distributors ship-tos a much up the also them through diverse the refer COVID are are symptoms ever examples segment. again it for important the or kid hopefully, up those school. home send Or than before through an determine the symptomatic kids doing example. you test to Veritor building, of test see product are safe? understanding, Do point-of-care customer base be those just are few set point-of-care the got calling for has is with classroom We've saw of order child. for distributors. our them in teachers of that the directly The then them of announced Z who they're most this product through they would There or people managing we other had directly flu at the and more dealing anyway. working with employers So whole gives et that I of while starting normal do when of in It's rest the thinking keep providing new mean buying and decisions make and workforce that's that is that These base all the nursing questions than a are we much -- in them they're triage do use that to purposes environment symptoms manage as do? up similar cetera and the that with that about work. types Y the if that's there were mimic all you the just and

Richard Newitter

you. Thank

Operator

question is Piper Bednar the with Your from Jason next of line Sandler.

Unidentified Analyst

I'll for and guys. ask morning Any Thank is Good have taking questions. real Hi. both on thoughts preparing for How This you the ones just for Jason. quick Andrew product? here I a point? know you are you. super them is on that to on BTK [ph] Lutonix one two the updated updated flu season, early, headwinds, Thank second this at strategy thoughts but the our I upcoming the it's in offer you And any contemplate or tailwinds can we then model? need challenges, rollout anything any upfront. any

Tom Polen

Yes, so BTK. nothing Andrew, in we BTK, in outlook good for QX On question. have our

but shared that. just to in that the past, I think reiterate we

that in had information the we FDA part continues this submitted had we it share on from -- update hear PMA last information under point nothing we by But be have as Of we additional time. the that, FDA. that and but provide we'll review course, is review to at shared an to of as active

that that sure have campaigns we the to year. In flu we're this I first product to off also as terms we’re vaccination support Obviously, mentioned, making of expect help season, flu the we and as And platform. development in testing the both flu we our on do platform. I on are -- tests have continue mentioned, MAX Veritor combination provide COVID-flu our Veritor to

that season those COVID have to diagnosis -- where And on actively we those flu differential are so working going have could needing as and teams we forward. both intensifies of support

that we The no other knows the answer is to watch -- thing one this. and

big incidences flu the season the seen rate some -- that winter and going or in to variables has other happen have anyone as answer think masking We the is the of around I on be in knows their which seasons. geographies evidence to in don't and social and world, how distancing of intensity still the quarantine Hemisphere Northern are have society the the it still and that using determined. How to actually of PPE quarantining well. effectively is that's reduced

but we're and we're that watching factors all So closely -- for. that preparing

Unidentified Analyst

Thank you. Okay.

Operator

back closing Thank Polen Tom you. the turn like I to floor would now for over to remarks.

Tom Polen

Okay. on the today's good thanks everyone Well, thank you operator, for call. and discussion

on from can solutions COVID-XX BD strong impactful world your the we you long-term for growth. respond help their well to time continued consequential of find proud on I'm results of impact our our I'm our While purpose COVID-XX the proud making time. execution they and this quarter show world rallied drive focus an team impact the around advancing industry, all our positioned the to so strategy, way a and Thank health also team the the health of emerge demonstrate to to pandemic of during for focus period on entire today. and very executing of has our care this

Chris Reidy

Thanks everyone.

Operator

Thank today's day. line. at hold please Please does This time Speakers, the this you. a disconnect have wonderful lines teleconference. conclude your and

Becton, Dickinson and (BDX) 6 Aug 202020 Q3 Earnings call transcript