Becton, Dickinson and Co. Wells Fargo 21st Annual Healthcare Conference

Great to be here. Thanks for having us.

One of the best conferences.

Sure. Again, thanks for having me. We've obviously been busy getting the portfolio in the position that we want, both in terms of the number of exits that we've done over the last several years. Obviously, in Embecta, BD Mueller, and then most recently in February, the separation of the life science business to Waters, which we think was an outstanding transaction for our shareholders. I think it's recently been valued at about $20 billion based on their stock price, so great, and around 20 times multiples as well.

That left our focused portfolio that we have also spent a ton of time building over the last several years, whether or not it's the biologics business that we accelerated with a $1.2 billion investment a number of years ago, to our urinary incontinence franchise, to our tissue regeneration business that was built through a tuck-in M&A that we've done over the last few years. Obviously, to pharmacy automation and peripheral vascular, and of course, APM, another acquisition that we've done. What you saw was, you saw those growth platforms that we've built over the last several years, again, really firing high single digit, double digit growth across essentially all of those growth platforms. They also carry a stronger margin than the average of the company.

As those continue to accelerate and outperform the base of the company, that also has a positive gross margin benefit to us that you continue to see across the organization. At the same time, of course, we're executing our Excellence Unleashed strategy, which is focused on bringing and executing BD Excellence across our compete commercial agenda, our innovation agenda, and our operational or delivery agenda. We can get into those. You saw the power of that strategy come through in another strong quarter after several sequential ones in a row. You can feel in the organization the benefits of the focus on med tech. I think you're just seeing the start of that benefit today.

Yeah. This will be boring because there's no surprises here. We're just doing what we said. Yeah, as we think about the upcoming analyst day, what you can expect is we will give a new updated LRP outlook. It's due for that. We'll include that in not only our revenue, which also not be surprising. We've clearly articulated we expect to return to mid-single digit growth after 2027 as BD Alaris pops up. You're seeing us actually do that ex BD Alaris this year, and you'll see it again next year. Then we'll give margin and cash flow expectations on that. I think what some of the most exciting stuff is we'll start digging into exactly what we're doing on our compete agenda, like how we're up-tempoing and transforming the commercial engine of the company, bringing it to the world-class level that we have in our delivery agenda operations.

I don't think anyone questions BD's world-class in the industry when it comes to operational. We're going to be the same when it comes to commercial, and we're going to be known for that. We're very confident of that, and we're making really good progress. On the innovation, you know about a number of things that we've been doing. There's a number of things that you don't know that we've been doing. We'll unveil a number of new innovations that are in our pipeline that we think are exciting, that help secure that growth LRP that we'll talk about. Then we'll dig a bit more into BD Excellence and how that really still has significant runway to continue our margin expansion strategy and the momentum that we've built over the last several years there.