BDX - Earnings call transcript Q2 2021 | Becton, Dickinson and Company

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Operator

Hello, and welcome to BD's Second Fiscal Quarter 2021 Earnings Call. At the request of BD, today's call is being recorded. It will be available for replay through May 13, 2021 on the Investors page of the bd.com website or by phone at (855) 859-2056 for domestic calls and area code (404) 537-3406 for international calls using confirmation number 6334356. I would like to inform all parties that your lines have been placed in a listen-only mode until the question-and-answer segment. Beginning today's call is Ms. President and Vice Relations. Senior Stewart, of Investor Strategy Kristen Ms. Stewart, begin. you may

Kristen Stewart

at and good being for webcast and Regina, thank made morning via is Thanks call everyone you This joining available bd.com. us.

exciting news have morning, issued press two lot We to we a releases. today. Earlier discuss this of

first second of quarter The fiscal discusses our results XXXX.

intention our announces diabetes The a into our second business to spin-off company. separate public

page will along of be call Tom these Chris find and Chief accompanying Officer. an and President, can on morning's with the Leading Financial President; Vice press call bd.com. Chief releases Administrative Investor to this today referring Polen, that Chief You during BD's and today's we Executive Officer Executive presentation is Reidy, Chairman, Officer

will Diabetes Kurdikar, Worldwide to the Given spin-off of who the Care, provide announcement on the CEO have we his President our also of of of transaction. been business, has named diabetes thoughts NewCo early Dev our

remarks three the items. President it address for Segment; Tom, Chris Segment. prepared Simon to Campion, Hickey, will of our Alberto and before I few the And to Segment; Sciences over I joined of of President presidents, a President segment Dave want be Tom Medical Following our Life Interventional by turn Q&A Mas,

cause Form our forward-looking release XX Form XX-Qs. differences During from earnings actual could including is results other can subsequent call, our and our statements could be filings in and expectations. be the such making possible our we'll that and some factors differ it found and that these SEC Risks XXXX uncertainties

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Tom Polen

BD you our how and on Thanks Good through thank we value provide we for XXXX will creating for our strategy. morning Kristen. stakeholders an are us. Today everyone on executing update joining

for exciting have We let's so you, jump lot of a right in. updates

second Our strong we and expected quarter than delivered results growth. EPS revenue better came in and

guidance. and second pleased We therefore, momentum the are are XXXX our reaffirming on and the very with projections our in business, for we our results first half half core fiscal continued our based

making our rate growth on average steady purposely time. progress portfolio very of investments over include which our shifting are weighted market categories We higher-growth each initiatives, our shifting into and and growth

this associates our advancing and stage tuck-in which making pipeline our disruptive we earlier We well patients, into potentially our as this are our includes company. morning as Care selective in as public Diabetes product stakeholders for We and opportunity planned And businesses our significant investments separate customers, M&A value-creating spin-off now a shareholders. announced for strategy, all spin technologies. to a intention see

its position and growth attractive more through leverage own global believe market leadership diabetes the allocation potential in can its of efficient category we As an independent public its the capital. this unleash company, business

on businesses. focus to For RemainCo prioritized core allows BD, transaction us our this

expect transaction strengthen single-digit double-digit return profile. revenue and this growth our We to mid total

spin be of closing SEC conditions, XXXX to in year the declaring calendar including statement customary the final and of subject effective. our to first expect BD registration half the the Board completed Directors We approval by

progressing are focused quality, our customer efficiencies. our which on cost against and product simplification are reducing We initiatives, enhancing well improving experience our complexity, refining

growth. capital balance initiatives on capital past expect recode back allow cash And repurchases end value our generate have Our year. later to strategy in our reinvest as FY and but the fuel initiatives a million progressing of are and flows into savings call, business to track allocation share of strengthened to allocation 'XX. us balanced $XXX to the by flexibility about more sheet we as position the talk Chris strategy, the unlock future of will more these return our part help over

pledge week We also world be initiatives. which of progress On carbon across were where purpose to are guided I was Earth make health for Last our direct I we've continue and we continue ago Day, our meeting, advancing where by today XXXX reaffirmed progress and as the the our Board on of great on ESG our climate targets, our made. change to includes by to year reflected be operations. neutral our we a preparing we

announced customers milestone achieved we Alaris our XXX(k) day. The commitment Alaris is number market This patients. in notification. million pump our administering is US priority leading infusions the in over and important as our that to an than since each CEO. we one infusion one submitted pump First, more Last taking the premarket we my week, our

sheet significantly we've cash our Second, strengthened and flows. balance

past to flows. taken the by meaningfully cash Over to turn we've improved our strengthen our X.Xx and net ratio leverage actions year a full X.Xx from

shareholders. new continue over And series doses when with Fourth, delivered acquisitions chain the in devices businesses. add available ICUs BD the of billion innovative and this which the it Fifth, we global the Leadership We've ICU We includes the treat Neuro advancing each future insights one we we're to milestones to spin-off tuck-in and the The XXXX with to behind impact of me BD we're going I the and culture estimated mindset. world of growth come what medical started and investments an control devices. BD beginning making up XXXX and the advanced be partnering what of and US patients innovation with our in where and mindset area reinvesting and done most. XXXX programs successes across used we'll our Fund we today to since and we for has next planning BD We an been and these very of culture are enable action with in XXXX to diagnostic our look treatment what's spin-off the opportunity profits back over of excites systematically Investor the using be capabilities to Day our tests shift value-creation were of sharing We and pipeline. not growth. value-creating embed early-stage this scaled impactful greater to the along team's enhanced and XX devices are business to We and shifting on and COVID-XX and including believe strategy. around diabetes reinvested culture growth our set we help Veritor of of a our story acquired in matters our leadership COVID BD the come. We Innovation Institute answered am vaccine to this our to our BD capacity essential the is tangible. real we're of proud diagnose injection intention to is some Growth just today, our to culture in host later and into business. very XX% it's secured patients to will that patients. X And most focus our progress call into forward developed only to our years another year But COVID begun. spread. a ensure COVID. we several innovation announcing an Third, strategy supply we've And all

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to business transaction. diabetes a shareholders value-creating our believe our is spin-off to intention we Our which

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it want to turn perspectives to announcement, to I Dev? over So that, on his Dev provide today's with

Dev Kurdikar

I'm of to everyone very hello patients excited business amazing be this and insulin to leading opportunity a injection. suffer technology, I'm I adoption XXXX. for first has The back of pen incredibly with caring pens, and role tremendous specialized a ago to dating also shareholder including which utilize for insulin, value the delivery in Tom, the history this introduction modality of years see to advance long as needle to the Care from call. for Diabetes our then, journey. disease, to world's insulin on patients living a diabetes. Since care organization. today's leading of BD's a syringe, insulin drive played leading embark helping build humbled, XXX Thanks in who has the listening to BD almost

company billion and more devices than leader other year medical Our the injection Diabetes reaches patients, We in diabetic world Care are per the any now today. in global eight business devices. manufacture device insulin

from As million to fiscal estimates Tom Federation emerging International living mentioned $X.X the patients number Diabetes the in rely afflicted XXXX co-morbidities diabetes revenue The diabetes retinopathy a significant outside on revenues world, United the As And burden will that of you the lower insulin of as, the earlier, healthcare The growth is with the of disease, business from business XXX likely insulin including XXX billion for to higher on insulin rapid complications. generated prevalence well are of adults the multiple the Most this in the systems as devices in with derived opportunity continue syringes and needs. pen XXXX, some disease injection likely as grow condition be global nearly market a was and with needles as injection factor often attracted of can States, million sale me XX% this XX, devices the breadth such of and emerging will million diabetic traditional other important? on hypertension, like expected accessories. XXXX the One diabetes cardiovascular with in around patients place generated across chronic limb see in regions. the in their XXXX. these is by expected of that growing rates globe, to XXX to XX% is why slide with to markets.

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capitalize trends. global on to leverage look We demographic will footprint to these our

look also to patch invest our we'll delivery novel internal insulin However, in type including technologies. technologies, X

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by to advance am end team I opportunity have building me excited our it Tom. I over confident work NewCo. that to humbled that care turn Let I'll patients our lead for shareholder back am saying this will tirelessly value. and to With how while to

Tom Polen

We that see this will great you part opportunity Jake and of associates for as BD happy to NewCo board. Thanks a Dev. those be we're on have and

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Chris Reidy

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consider color wanted the as back you we models for some the you half of Now year. give to your

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As reflecting material margins in be continue our as year we well low to initiatives we costs. as the quarter, last in of our reinvestment expect higher operating second half raw mentioned the XXs, the to

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Alaris our revenues with in increased pipeline our the of momentum have R&D reinvestments XXX(k) proceeds XXXX, tuck-in core progress our excluding strategy our the mid-single digits. COVID-XX to seeing expect clearance, we testing our given and Veritor fiscal confidence acquisition BD are In we grow in XXXX and we solidly Regarding our outlook. the

line and manufacturing and we're it we the results fiscal gradually to XXX(k) our while quarter We intending second our selling have mention, purposes. scale ramping not during would for Tom as momentum heard also sometime recognize our some the to think you modeling be desire Alaris' clearance the pleased to and of are prudent we really margins our about our half would FDA's predict XXXX. model revenues believe As to prudent both businesses. our input with We the time efforts. believe across be In second we it conclusion,

spin-off excited up shareholders. to to opportunity our diabetes the to see Dave and line are With and any that, plans an Simon, our Alberto, business Q&A. of this important happy please are for about Operator, the as take open create have. Tom, I for We value questions you

Operator

The Instructions] Hopkins is Bob line of America. for from now floor questions. Our of with open comes question the first Bank [Operator

Kristen Stewart

morning. Good Bob. Hi,

Bob Hopkins

to Boy Good lot morning. here. a unpack

two of kind questions. ask just I'll straightforward So

kind on side. of a diabetes First housekeeping the is

then one it You in percentage curious just that told And you. us Thank XXXX. of it follow-up. was roughly rough I'm revenues of in XX% year? profit I've got fiscal operating what was

Tom Polen

Yeah. the On on be do that one we'll statement. clearer financial that we carve-out Bob, first as

you don't at will the So do you an can know, forward. that level operating as – But basis ongoing going it see at to as that that clearer. be But expect on we carve-outs out we break basis.

Bob Hopkins

Any as will though just rough it be sense I'm sure –

Tom Polen

say Too the we're of going early right to that. still midst through now as

Bob Hopkins

Okay.

Kristen Stewart

positive are the that company's our say business what Bob the the and we Form detailed out flow gross can corporate XX growth And to the allow later it then is financials is this discussed, to – as profitable pursue more to it agenda Certainly, that then. and we Care operating going average. available again be carve will cash Diabetes file so year we is margins above the maybe Bob and note just certainly the which

Bob Hopkins

Okay. Great. And then one quick follow-up.

XXXX, right back ask skip could year few next operating a on offered you're second. to for so for to little we a relative XXXX, things outlook half many XXXX? the in the – over about do you year I'll the about your What quick ending comments margins next suggest of but kind where So comments of

Tom Polen

Yes.

can growth and year, proceeds. Veritor the from to we're spending you drive as investing this see So future

that will not next well. reoccur I will was be operating also And clearly, something does the that year around you pointed that add that would FX of lift drag remainder see as next the should FX lift. coming we would rolling our you that a so margins out from see our a you That of to through so turn of Alaris get year. – this We'll as inventory year this year. a continue terms well. because see And some pressure in for And some back on

Bob Hopkins

to Any roughly what sense for sums though directionally? just that

Tom Polen

testing the Yeah. we sustainable pulling to and more we're by lot We're what the you guidance going as we early. test. flu that of – give the be and levers assay impacted And to on as happens to COVID all will not COVID think we're testing. also this combined A working know we're XXXX at-home COVID can about make

sustainability know. have big will margins where goes in should in have COVID to impact down. have gross will clearly, operating that And But it you So ability margins that a on testing. some come total and would as

Kristen Stewart

million into re-launch margin And that The be higher-margin tends as that R&D business as discussed to we've getting be Bob, GP will item. a tailwind Veritor as the in next as which obviously a start obviously line we $XXX right, as of expect the reminder, we back perspective come back would a it said, just also year tailwind. the to well which plant year, that next be -- profits from out the are hitting of expected as re-launch onetime reinvest absorption will Alaris, a line we expenses about as well of this year,

volume on, we look continued recovery, And in and comment particularly later like returning continued so of to think in back positives as momentum the recovery areas can quarter Simon those and see that about later the volume on and we in can in are we We post-pandemic, as April all end March, continue saw recovery. procedure at we which as on. saw as BDI, strong about well that in particularly the good talk we

the for thanks question, Bob. So

Bob Hopkins

Yes. Thanks.

Operator

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

Kristen Stewart

Robbie. morning, Hey. Good

Tom Polen

morning, Good Robbie.

Robbie Marcus

morning. Good

of weaker about from than some the lot Medical unpack bit businesses there's the and to maybe business to said, Bob ask a a continues expected seemed benefit base COVID. particularly here, Maybe I As Interventional could here. business the

COVID here flip wondering from much of the if tease you start to how benefiting that on should was year? and over out that you And to within impacting And do So, I interventional? of could of come then, how out the is expect some side the balance Medical, what's recover?

Dave Hickey

comments Yes. to on Simon on turn with it some start Medical, can and I Interventional. maybe just then

continued growth saw certainly, in Pharmaceutical durable happening. things So of last you see is see we a in you couple Medical year One Systems.

saw You growth, $X last the that than company growth X% I average plus to were before, higher over communicate was us And we saw in in capital quarter they the see in again it the outlook. there. intention quarter incremental durably billion, and you support year think my that business quarter is or of think, I that long-term investment $X.X obviously investment, it billion last growth

So one. number that's

syringes. putting we expect collaborations we discussions in several and pharma on in have that are with companies about vaccines reaffirm prefilled also COVID we going -- We

well business opportunity about less So a or we ago ago, again, another we spans were hand up In help announced, X.X could to one as FY that think about we long-term. to vaccination. now I billion -- today in talking do also for orders in syringes billion the a than COVID XXXX. that -- commitments that year we syringes We remember, MDS, we commented have that into year

of durable. They obviously peripheral catheters syringes wondering than that to Overall, think midlines into we potential XXXX, as I growth as some MDS. new catheter just further using do that our as the shots, PICCs, we submission share ahead And being stays, to well a bigger in ASPs terms a benefits about of products make well forward in in which taking XXXX. are certainly, things the like demand, like have have going as maybe so to XXXX. MMS, to look look see, demand as there series in we of the even be in see obviously more even think acuity business we higher trends there's space into ICU, from we had opportunities durable innovations. strong XXX(k) but booster And that cliff with And patients there was for shorter-time business or had which we demand would higher were continues of from the MDS while durable that

last the from minimal would I'll over Simon year BDI. for that to the in is say what first I quarter But on saw think the the months very you turn impact I two it BDI. was of pandemic

just that April. that we given uptake and mix. into trajectory in think then, continue And March strong comparable And product saw Simon. we I see did so, see and happening our you

Simon Campion

morning, Simon. Good It's Robbie. Yes.

add quarter just TTM. me the see you with strong and UCC, really here let as double-digit at bottom So driven by growth a in PureWick

quarter that a others this did be see that mentioned, probably on to should single-digit heard great emergent as not impacts that. will you've in Surgery, of business March it a an factors we through is one, for us has space, continues mid Two in to positive performer that So, and hernia the then, involved high to to from space the driving improvement Peripheral, what is early procedure. quarter. based in Peripheral -- and Tom sequential in you the not ESKD with surprise April be Number and this but surprise the And particularly end no there. a us. remained into and outlook

had for years. patients hernias have So, several

us is a are So later, I the than in first say, And high for they impacted that the when ChloraPrep, treated had recovery would secondly, QX happens when year of last initiated. growth resurgence typically particularly is a and higher normal.

very strongly China quarter. But rebounded our We So an of in as of China, QX that's significantly business, this move in and this year a example, think, in really it of past impacted we last the has year. I bit sustainability offset, for quarter. this into QX in demonstrated is were

resurgence as we ability abates to our So remain recover in business here. the our confident

Chris Reidy

I add comments. two would just

had the exceeded in did we and January a turn Interventional quarter, take of turn resurgence to of It's year. we fact to I I'd showed the that COVID we helping it outlook and terms would improving. to core April. the that and said single momentum February the in call. remainder we moving around actually going to also core XXXX point digits. guidance mid And low March our mid-single the seen that also business this XXXX in of in seen and as because we into momentum in reflective for by from with And that around see back point sustainable. what the see But it solid the the the the the that we from across fact happy expectations about step And us terms In that's that that had of confidence for see to digits

Robbie Marcus

data just end think can if so process want think year, fiscal a or balance you're I as Great. the have everyone XQ. how be And One next testing it we fiscal to about next I maybe delivery million Veritor here. next long about booking to up from right. second I we $XXX of about models on of that we another XXXX is each appropriately and sure the for the testing, of at make some to that, to necessarily Alaris just order but XQ takes points comment not half Alaris, able and remind for approval scale year of year? And or realize the Thanks. sales going to COVID so for high maybe of the revenue, in just sales implies our

Tom Polen

reminder, is which and just Robbie, towards what high end, end, always so, as you emphasized the the we've a the just not the word, used, calculated. Veritor, question Just high around on

almost you the of your revenue we're quarter at -- towards on to we But quarters point, $X of So right? little end two Veritor. per high first the if maybe said range, you the what -- you're a bit to than billion get ended almost less

roughly that reiterating halfway And we're which as you that confidence little than that basically would range. less could by think, of you split us of be you So end indicated, maybe towards what in the two-thirds there. a the the gives number year, it's through quarter way through on said, high bit

do couple would typically think say, an backlog it shorter And months that a of to Pyxis, as would from initially. of are then so for be let's able space, about times than, On ship to we be we install Alaris. Alaris, orders implementation those we the have in upgrades, a that order

Robbie Marcus

Great. Thanks.

Tom Polen

Yes.

Operator

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

Tom Polen

Good morning, Vijay.

Vijay Kumar

guys. Hey,

Chris Reidy

morning. Good

Vijay Kumar

by to question. my I Tom. One base for business points. taking -- guess, actually, XX spin itself. couple is now on a accelerate Chris. going the morning, Thanks Good morning, the Good basis

So pump. if What on of heard are some rate of look we accelerate comments base at I And prior looking the spinco patch the perhaps the now be? north Is I at north being X%? spinco to going X% the to guidance growth X.X%? of X% top line, should for the on that

Tom Polen

take Yes. that one. Go ahead, Chris,

Chris Reidy

Yes.

the me one. take Let first

the basis you're just so rest of put growth growing digits. relatively So XX right. of that think would We flattish billion as $XX to absolutely And that, a compared be billion of has points. which in mid-single of there that been $X the or revenue,

XX that in you sustainable can basis an mid-single-digit drag gives points. the ability that, that guidance of you that see of greater you growth achieve points that so would that and the recurring basis. And has regular If is I confidence basis our kind math, ongoing remind XX do rate to on a us

So that's a positive.

forward. spinco haven't addressed going We growth of the rate

we fighting think on is be growth. separate -- And care strategic. a is against other BD diabetes emphasis that unleashes potential, spinco feel growth his are that now being say Dev investment public we that would heard that, because or for within items more right it You fighting company,

invest, that or separate it So internally whether a in that. M&A, R&D company, do can as it investment is more can through

directionally spinco to the growth think about come of the to way on a kind profile that's more it. as entity, So but of separate

Tom Polen

is you about Vijay, about the the did -- Tom, ask And, this patch.

patch the our pipeline business of discussions that the on as spin. past. be Dev you development and external his as wouldn't our actual that products continue for spin, discussions in of the these business pump. -- updates we we've team's shared is on And That vision continues expect timing the certainly, R&D So to closer we in that those situations as will on and there strategy But and does pipeline partner, the diabetes with the the in the spin. and happen other in until approach post further typical get can within

Vijay Kumar

That's And a Tom. follow-up. maybe helpful,

TSR strengthen to and mid-single the I double-digit think the noted the top-line profile. press transaction release

I'm I an EPS. Perhaps know basis? you Just spoken for are dissynergies? that there double-digit some. are there EPS. in it intact parse what the Is the means wanted to had clarify assuming underlying still on versus about TSR double-digit out any past

Chris Reidy

Yes.

that operating SpinCo. bottom-line. said will we both us and actually -- in talk strengthens said gives this spin from the as the we clear as So we more And margins be top-line the the the about strengthens confidence as and

So this so that and gives us supports more effort. it confidence in that

Vijay Kumar

prior There from is no change LRP correct?

Chris Reidy

in any costs. You the cost some that couple stranded transaction that We about we'll a we agreements be And years for of address good stranded stranded couple Vijay of did mention costs mitigate have fact those would years. a this. TSA obviously, there the feel those can of that like will

So about stranded we're not an concerned impact. having costs

Tom Polen

mid-single-digit been position And our reaffirming this those. as Vijay since reminder a reaffirming TSR I've in of ever that on double-digit revenue growth we've and actually the strengthens role both been

the Care growing company So income. Diabetes operating on on the and revenue was below

Vijay Kumar

That’s helpful. Thanks, guys.

Tom Polen

Okay.

Operator

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

Tom Polen

Good morning, Larry.

Larry Biegelsen

diabetes in assumed underlying Good for growth spin, for guidance the question. the the fiscal one the One XXXX. morning. on Thanks taking on

it? that X% in area. not attractive is I an mean XXXX It with diabetes the slide grow presentation spin. start for few as high-growth seen to Tom Just diabetes the invest a years. area. is suggests before Why a did this

Tom Polen

Yes.

So it's great question. a

of attractive diabetes to apply across other has opportunities it, again it happening the As opportunities in We relative profile as opportunities also very our of and well other significant it's BD company Interventional in opportunities look just future Science whether technology automation informatics our as the unique Medical management Life not or business business more opportunity non-acute us. that course Medical are and business there those we space, our franchises. are in Interventional And see and segment to across and in about tremendous for the and both the have that the segment medication think we at a we our our areas.

channel they as our dynamics So, and compared to very other distinct physician for patients, have example, businesses. distribution

out patch BD right? our products is call also be Interventional our technologies all very channel. products, leveraging options very that in diabetes of of not excluding rest records our about again that they and they MMS digital that have data patient. as BD health into As different of which across medical building our been we It's into the connected footprint more same overlap in Interventional you it's Science how future the like than That's our what's very different than franchise and or sell Science majority commercial will care think points Diabetes, systems. significant where the And They life think require what Medical. than dynamic Life sciences way, other care inherent also the connecting business, the it's is our Medical, into connectivity or in a a and Life pump the different EMRs businesses we the call in electronic segments the and rest we MDS we're And directly see eye as channel diabetes. you outbound the about we've -- that's the BD products on think in about

for spinning other Diabetes tremendous potential we're why to BD absolutely allow which -- there excited be that them So competing programs we is opportunities in unleash think not are will that the with company business focused them more that BD best attract driving to in them strategy. allow profits back their strategy talent, very allowing way will in executing into the also their reinvest RemainCo a focused and be to Care our

opportunity shareholders this reiterate for So and but so our business, for we're excited not about being we again the that's a only associates. tremendous why why our

Larry Biegelsen

QX if right getting helpful, doing what And ex-COVID it assuming Tom. XXXX? X% But for -- Chris I'm about fiscal and at I'm typically seasonality. increase QX, math testing sales fiscal fiscal the I in this look But fiscal sales it let's growth call your about it flat end. QX underlying underlying at the That's implies $X.X historical call billion. QX the high in sequential you if and are in I'd

this So guys. right? seeing. just math Thanks given And this questions, conservatism that is recovery we're for taking is the the

Chris Reidy

Sure.

rate end be in year now So, number at in growth so the core. accelerating ramping is and actually the one the and mid-single core saying is digits we're the core the will we'll that

about couple things So, of going on the contemplate we think and of as a remainder XXXX.

to increasing. is down it of time has X% So, last that from have X.X% high number towards that is Veritor a guidance. come volumes mention momentum core one end range. did bit But that gave that we the We the as still within moderated slightly

bit. so that And testing that's impacting that And offsets and Veritor pure the COVID at a little pure that dollars. when the the looking you're testing dollars it's

core So, we is on is good momentum the moderating look the the news the year. second in -- is the as slightly half bottom-line out COVID testing the of

and those all we said put the be we the and both bottom-line. topline in You of right together terms we're where would

On of prices also more towards bit profitability Veritor move the the pricing. the an as flu the rapidly to a seeing little begin bottom-line, we're of on typical impact

that's having of that's year. impact in the being half so the and second offset And an

we're within the top bottom. on So, guidance still the range the and

Kristen Stewart

And in keep of that mind QX a have upticks-- bit MMS that with Larry little too medical so is revenues does in in associated necessity there large of amount

Chris Reidy

there's basis. -- large very year-on-year year a yes. Last a On

Kristen Stewart

for revenues stronger revenues pumps. too half for European for MMS the of second the too the in year And

Tom Polen

That's its in was it's when peak. in pandemic Yes.

Kristen Stewart

for the Thanks question.

question. Next

Operator

come question the SVB next Your with Leerink. from of Newitter will Richard line

Richard Newitter

morning. good Hi

more then year? amongst on what in last Anything you'll able be basis mind year-to-date six normalized you that rate sure in contributing is you into on And terms collectively needle-moving might think pointed later to how and have XXXX? But as Investor these five ballpark? top there Day in think tuck-ins the little asset will you've any particular you did a your on of this just or mid-single-digit of be this also I your growth of to that's and points I'm that when more going XXXX that we add should that the we to head get been year. bit maybe into executing Just fiscal to

Tom Polen

Yes.

about inorganic and obviously as and that view have think profile So, we -- defined. as fueling both we we that form of growth that a opportunities that we've organic innovation

Peripheral them going just up. will their again about Intervention really think the are in there that's catheter technology It's a example We're is that the show much the great last have. year, that we excited the number than of that where done six meaningful faster for about year, breakthrough BDI a a which businesses growing new I we them. company be that really to think that as market in five are average. business we've this product It's obviously, in within a for is

acquisitions That's the area us As the much that than that's non-acute medication MMS the area. faster think we two management. an medication about into in acute care management get growing

made we be clear us. the the strategy have in acute enable leadership the to continue capabilities our of non-acute happening shift sector want in helping into the also important to that's we've enabling is up As sector. care leader the building the a to And but very trend non-acute in the our in

we'll I And so acquisitions those of And in enabling look being strategic teens. both those that. in back two growing on think markets very as are the

infection disclosed we very you haven't like that And XX again, prevention growth the see had we positive on there. and a rate that an product. yet can there's So, couple slide shared products

new had a product year our like and Obviously, we last addition until until about we're to a franchise will while. actually that did forthcoming that launched drives haven't it. launching it with We bag globally. we'll and a nice didn't acquired new just This be organization ChloraPrep we that now a infection for talk prevention product but that Pristine. announce their We great commercial

a vascular we very same about which last So same we'll factor closed access we're with in do the to new the there. talk we we'll the month excited bring that so that that forthcoming market. product or And about as just

different So relevant all a of opportunities business our in very driving number strategy.

faster and we again, participating acquisitions markets growth of it's average and of grow those than are part BD to strategy. expect All our the in

Richard Newitter

we a just little the do going kind that pool willing of the obviously you'll you're think with we up once of planned forward, as target bit looking the then And occurs? of do of the now, do helpful. spin-off now M&A portfolio That's diabetes forward beyond and the think of that XXXX kind spin-off size guys the into you potentially be moving grooming to

Tom Polen

a that's in do a probably deal on focused size, but for as we the of strategy tuck-in M&A. couple CareFusion the we're looking certainly be deals of terms Obviously, larger M&A. Bard-type not or on than M&A but size, Could range Yes, in tuck-in Richard, done us still are billion-dollar of our company anything to size. still to a side And transformational tuck-in they of be can tuck-in very Yes. date? like we've what M&A with communicated. very you consistent would see that we've

Richard Newitter

you Thank much. very

Operator

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

Josh Jennings

for Hi. Good Thanks the taking morning. questions.

was on return And in lot the of question forecast pandemic on Alaris but wondering fiscal the how us organic second Alaris revenue et one one team board the focus could orders core some been how just because medical help Becton the may really coming Alaris, on help a parse Just to and today. business's to if drag of the thinking be just you just a updates just growth? necessity mean, there difficult understand, out I I drag XXXX there would and understand On back been. follow-up. by might the great much what the mediation about of be has half to help that to any attempt cetera, has appreciated.

Tom Polen

-- share investing. on there that and drag turn I'll element a some to has Sure. Chris to certainly over we've it the been been thoughts that

They'll team look on continue maybe point have well. to just look who few bit of date you that As just over people the we the of move long if as to opportunities back to responding I FDA as beyond questions. have towards a timing But color be clearance XXX we've -- innovation you And time right as years, XXX that forward we more the in we'll shared ranges obviously, taken and is, over And them say days. engaged can any how been another submission. XXX pivot the working to last from has think pumps. clear it, back FDA give about factually the days a little

So those are the facts.

XX to months. X.X it call So

the that's a logic. bit little of So

updates we historical meaningful the approval not just can. recovery impact as time again, it and be on based I as that terms of While right review the we clearance mentioned right the we're answer now your we line But in as as in we're prudent question of within the in a before, further how in I much predicting clearly to described. FY provide And XXXX. XXXX will see we'll timing contributes will get process the have how saying again timings now, FDA

about year our think the So the XXXX. second during half of clearance fiscal

the that any been... maybe on comments Chris, it's So drag

Chris Reidy

Yeah.

year, Just to give in a forget, had medical year. we And revenues about don't or the little in earlier -- of necessity non-medical necessity $XXX bit we million some had on the revenues last thereabouts. the

last about that rate thereabouts. year. about of million revenues was $XXX $XXX you're run So million thinking The to prior

a of see in million the first less you the the little And necessity over So $XX that or down. tailing year. this see year. off that we We could of half bit second year, so in half then see step medical the

So that necessity in offset from XXXX with that growth a but certainly down is both some the to rate on a gives step certainly there you down step some the XXXX. and by revenues, medical to show things of drag work

that about the it's coming in of that sooner, in could it's there we we'll some half second of will good the as next that the but And second news ramping year, is some happen to prudent think do expect did XXXX As think that to a we that to full fact year. that year. the of sense It The about during prudent it benefit of the the year. you see the of to were us what the ramping point we giving happen sooner, get is you we to that FY half happen. think to But is back to half regardless. year it we'll work in try of model make second

Kristen Stewart

Josh. you, Thank Great.

Josh Jennings

lot. a Thanks Pretty helpful.

Operator

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

Tom Polen

Hey, Matt. morning. Good

Matt Taylor

morning. Good guys. taking question. Thanks the Hi, for

reinvest wanted of to quarters, help So going the get the over you're on and on on to how could Veritor I if understanding next profits comments we the impact circle see couple spending some just the back margin. the

this the have of spending flat XXs to low a margin? $XXX good half ask much was just question that about about maybe be think and sequentially. the you way would second how Is with ask million to to to to that spent already, start getting way or modeling So the

Chris Reidy

hits our folks of the So -- margin the to way margin million the that is some give realize actually some there did the impact that so do QX. ratable. some hit we you some into basis don't a -- gross that lot pointed that the see is point fact of and a of was think to expect to did insights spending. to that we about XX a to within gross in We that ramp it that point bit. number We $XXX-plus would spending more of We

exactly much how there's And come. precise But to so each is we're not -- being about more was in quarter. it

is on pressure that it it is what which we're half putting be. saying as so the is second the why And it margins guidance expected we is the would for

margins does operating margins investment as keep not that mind going And making year. It's is repeat. it it's to it both something not result going suppressing that drive is that So future growth, and we're in a gross to impact this important forward. will margin that

Matt Taylor

that kind to you that, to one guidance how not triangulate trends saying care-oriented can Anything to pre-COVID that, helpful. they a April or talk slide to have it And businesses That's you the you ask about return do is of okay. just think to levels, close then or going the to recovery us on like sounds I will that you're they're the help I want acute of was how March. guess that pre-COVID here return levels. when assuming continuation like recent get expected to progress. Okay,

Chris Reidy

Sure.

So XXX% we March in example that we year. in get But in to said, we and the have utilization as in continue expect for of the don't get April. end seen XXs does by back It now. to more improvement the level. high some into XXs, back that We're up the the XXs

expect of in creeping half back not the start get but completely the that So to we back year. second

Tom Polen

in where And we good we – all where there. overall. there terms it's maybe trending positions we Simon feel on very, very particularly good – procedural of all the that monitor the categories, we're feel are areas our But in look our very very about and of side, at closely. We of categories we're on our share as – something

it at prior with So maybe still today that's that have some does longer. We and of areas it geography what little year think well. vary. I severity are from varies that as condition procedure take recovery bit do it because to XXX% you up as see just a Simon Again, the the and of associated areas comment opened on some a

Simon Campion

Yes.

and businesses think or So of earlier last on, into in But across businesses monthly alluded was main we this that as with levels two has as I do obviously, some improved impacted March those it of XXX% to, customers. Surgery some done did weeks. business of continues And every European strike sequentially, PI the Tom I track impacted and disproportionately aspects pre-COVID our quarter. and noted that couple We've the are platforms April. in surveys

As early late. one severely is of I that's hernia recovers and those earlier, areas noted impacted

back to data the procedures see So a that And are from our next indicating but in come put volumes months care And we we in to six are physicians not numbers a that obviously, back. well. of that on typically survey and survey patients bit to about rebounding. the four only as that XXX going are the their that's general, gather do coming are health it are But a month, start were we laggard. hold now critical over they to

– reasonable we're So it's spot. a in

Tom Polen

good. Very

Matt Taylor

Thank you, guys.

Tom Polen

Matt question, Thanks the for

Operator

Your next come KeyBanc. will question of with Matthew line the from Mishan

Tom Polen

morning. Good Matthew. Hi,

Matthew Mishan

for you thank and squeezing morning me in. Good

testing then of Alaris revenue growth less timing guy of the The for guy have But clarification. year? is good quick is a for medical but think the the Because like excluding be a just or testing, you a Alaris digits obviously mid-single negative. XXXX I and half First bad FY next necessity FDA. first would

Tom Polen

be expect guy. to that good net would we So a

Chris Reidy

guy. Yes, a net good

as XXX(k) which specifically we Alaris. on from come clarity COVID more we're the So the back we're the will excluding saying go testing, And that when of get forward. doing excluding

to So that that incremental would core growth. mid-single-digit be

Tom Polen

Yes.

those of meaningful. that, that timing be We under we will again, But will more to ship XXX(k), get exact which qualify. medical once the the course will which on of necessity for clarity continue have full customers year To XXXX. any But expect that of answer a we but situation will in we certainly XXXX, how in fall to expect it much a stay tuned would that in positive. be on

Matthew Mishan

your thoughts a Alaris' Okay. have comes of impact it then just back the on Alaris? portfolio broader Think like just portfolio. on on will And overall And a have negative a of impact Pyxis. it it Did it outside Pyxis? the impact when

Tom Polen

Yes.

no We have impact. seen

infusions, our to Alaris very, tremendous the about customers We've Of the it's talked as customers the in course, US in is product Alaris. customers that launching majority is and new for noted as very of number. Alaris that, we market-leading a upgrade we have broadly product with And hopefully reason. we XXXX, – stuck the of the do expect end with a to the expectation. happened percentage particularly up

gets suite that like having data but do value that's there is any full a allows Pyxis. the central from because you not our use our as parts enterprise as BD that from So medication that great platform on well analytics only to Obviously, HealthSight pharmacy. one other see in dispensing we the of infusion, to management don't diversion and impact things of software

of see the going so continue in to that. forward things case all those And remain and we customers strong will think value

Matthew Mishan

much. very you Thank

Kristen Stewart

question. one last take we'll Operator,

Operator

will question Bednar final Our come line Jason of from the Piper with Sandler.

Tom Polen

Jason. morning, Good

Jason Bednar

just Hey and one taking good a follow-up. squeeze question, then the have morning. on Thanks for with spin me the in. I'll I'll start

spin Care sheet some over for the the business. investments debt mentioned we on flexibility transfer the NewCo? what be that the thinking the level Just should for to seems You to strategy, but of also maybe Diabetes NewCo about reasonable will and advance balance make has

those decisions will about to made, that? of are think How still be kind in-process? they So or

Chris Reidy

Yes.

no date. cash structure along will the are those We with more details expect inorganic come provide the forward and on to them to move opportunities. profitability provide flexibility will the we that that as decisions the do we'll pursue -- So existing that's closer that spin growth capital

of be goes equation terms that of and debt make flexibility part sure the in of we to into carry. much they will So what have that it they'll how kind want then

Jason Bednar

time timeline just right with it's know the a helpful. still I to go-to-market proxy the that has about then but then offering line Okay. development, in what's have test? And Great. about That's what's an for We the at-home way to COVID point. there at-home there. the established right think think an And out do price effort?

similar in at higher a you level, come have So set a do or a do you maybe that justifies feature price point?

Tom Polen

so timings. well for EUA in a that our been has active we've as don't been a very But development until pipeline. hand very we bit. our launch specific on the Yes. been We we -- project advancing practice get It's in in

soon product. stay so And as EUA we get for as an that tuned

are You those the recognize on and we other first taking obviously, prepare channel everyone launch. to else unique taking will for prepare for versus among to know a And and is which channel to the we we're that actions be actions that that. ones

well forward the be get We'll we'll we tuned. look do think we announcing positioned So when and stay that. EUA to

Jason Bednar

All much. right. Thanks so

Tom Polen

you, Thank Okay. Jason.

Operator

I the for Tom to over closing Polen back turn will call now remarks.

Tom Polen

also Vince for sign would off Vince's And wonderful Well Okay. thank we Vince's be listening. for Forlenza in you his the BD. questions. him the mentioned I a and time, I and transformed the Vince past grateful before wish, to BD retirement. remiss day last is I've to last that Board And I'm leadership everyone for alongside the got excellent that I was on work And not week mentorship. expect

of BD's XX,XXX around the lastly, I want the of executive the thank Board BD So plus team best. And Vince on wish behalf globe. just the to on everyone behalf I entire want at all associates to and

sacrifices unnoticed. and efforts gone have not Your

for We care making are around the are advancing progress. And meaningful making more importantly, lies we about what impacts for customers. I've great us. our never most We're been world. excited ahead

and BD and you safe exciting part stays these For times. those hope healthy are ultimately everyone and listening And those become of of part for NewCo that for will I thank who remain today.

Operator

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

Becton, Dickinson and (BDX) 6 May 212021 Q2 Earnings call transcript