Becton looks to separate biosciences and diagnostic solutions after upbeat quarterly results

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(This Feb. 5 story has been refiled to correct the name of the unit to biosciences and diagnostic solutions, from life sciences, in the headline and paragraphs 1 and 4)

(Reuters) – Becton Dickinson beat expectations for first-quarter results and said its board has authorized a plan to separate its biosciences and diagnostic solutions unit on Wednesday, as the medical device maker aims to focus on its core business.

“We believe the separation will position New BD as a differentiated MedTech leader and enable optimized investment,” said CEO Tom Polen.

The company expects to announce more details on the separation plans by the end of fiscal 2025.

Becton’s biosciences and diagnostic solutions unit makes diagnostic products such as those used to detect infectious diseases and cancers.

Earlier this week, the Financial Times reported activist investor Starboard Value had taken a stake in Becton and was pushing the company to sell its life sciences unit.

The company also raised the lower end of its fiscal 2025 profit forecast to a range of $14.30 to $14.60 per share, compared to the previous range of $14.25 to $14.60 each.

Becton’s total sales for the reported quarter came in at $5.17 billion, above analysts’ estimates of $5.1 billion, according to data compiled by LSEG.

On an adjusted basis, the company reported a per-share profit of $3.43, beating analysts’ average expectation of $2.98.

(Reporting by Kamal Choudhury, Christy Santhosh and Sriparna Roy in Bengaluru; Editing by Alan Barona)