There’s going to be a new competitor in the diabetes market.
Becton Dickinson & Company (BD) is spinning off its diabetes care business into a publicly- traded company in the first half of 2022.
Devdatt Kurdikar, who currently serves as worldwide president of BD Diabetes Care, will be CEO of the new diabetes company. Kurdikar joined BD in February 2021.
The diabetes unit generated revenues of nearly $1.1 billion with 48% of revenues generated outside of the U.S., including 17% of revenues from emerging markets. BD said the new company will have manufacturing sites in the United States, Ireland, and China, and is expected to have office locations in New Jersey and Massachusetts.
"The decision to spin off our Diabetes Care business is part of our active portfolio management and consistent with our BD 2025 strategy to Grow, Simplify and Empower," said Tom Polen, chairman, CEO and president of BD. "The spinoff will allow BD to strengthen its growth profile, enables a greater investment focus on our other core businesses and high-growth opportunities, and makes a greater impact for our customers and patients.”
The diabetes unit has a rich history that dates back to 1924, when BD introduced the world’s first specialized syringe.
"BD has a long history of serving people with diabetes globally,” Kurdikar said in a release. “As the CEO of [the new company], I plan to build on our strong foundation and drive growth by investing in innovation and allocating our capital to pursue strategic growth opportunities. I am fully confident that, as a standalone business, the [new company] will have the flexibility to invest in the right areas to become a more nimble, agile, and innovative company in the rapidly growing diabetes space."