Becton Dickinson (BDX) is planning to spin off its diabetes-care business to shareholders as an independent publicly traded company.
The Franklin Lakes, N.J., provider of medical supplies, equipment and diagnostics said the spinoff would entail distribution of stock in the new company to Becton Dickinson shareholders. It is set for the first half of next year.
Devdatt Kurdikar, world-wide president of Becton Dickinson's diabetes-care division, would be the new company's chief executive.
"The decision to spin off our diabetes care business is part of our active portfolio management and consistent with our BD 2025 strategy," said Tom Polen, chairman and CEO of Becton Dickinson.
Revenue in the company's diabetes-care business in the company's fiscal second quarter was about flat with a year earlier at $284 million.
Shares of the company at last check were down 3.9% to $240.07.
Separately, the company reported for the second quarter ended March 31. Earnings were $3.19 a share on revenue of $4.91 billion. Analysts surveyed by FactSet were expecting earnings of $3.04 a share on revenue of $4.89 billion.
Among the key milestones for BD in the quarter was the recent submission of a 510(k) premarket notification for the Alaris system to the U.S. Food and Drug Administration, Polen said. Alaris is an infusion pump used in acute-care hospitals.
In March, D8 Holdings agreed to take the surgical-robotics company Vicarious Surgical public at a $1.1 billion valuation. The transaction includes a $115 million private investment in public equity backed by Becton Dickinson and Bill Gates, among others.