BD's Strategic Separation of Biosciences and Diagnostics Business
BD announced a definitive agreement to separate its Biosciences and Diagnostics business via a tax-efficient Reverse Morris Trust with Waters, expected to close around the end of Q1 2026.
The separation aims to unlock shareholder value and establish New BD as a pure-play medical technology company with over 90% consumable revenue, a strong innovation pipeline, and margin expansion.
Brooke Story has been appointed to lead the integration and separation management office, leveraging her experience as President of Diagnostics and her role in Edwards Critical Care integration.
The post-separation company is expected to benefit from enhanced capital allocation, including using at least half of the $4 billion cash from Waters for share buybacks, and will maintain a focus on margin expansion and innovation.
The transaction is progressing well, with the expected timeline and strategic benefits clearly articulated, positioning BD for long-term success.
Adjusted gross profit margin was 77.6%, down from 80% last year due to manufacturing expenses and foreign exchange impacts.
Adjusted operating profit margin improved to 28.2% benefiting from strong sales and deferred spending, with full year guidance at 27% to 28%.
Cash and cash equivalents stood at approximately $3 billion with $1 billion remaining in share repurchase authorization.
Edwards Lifesciences reported second quarter 2025 total sales of $1.53 billion, growing 10.6% year-over-year, driven by broad-based growth across structural heart therapies.
GAAP EPS was $0.57 including a onetime charge; adjusted EPS was $0.67, beating expectations.
Research and development expenses were $276 million or 18% of sales, reflecting strategic prioritization of structural heart investments.
Selling, general and administrative expenses were $502 million or 32.8% of sales, up from $448 million prior year, with increased spending expected in H2.
Surgical product group sales increased 6.8% to $267 million, supported by positive procedure growth and new product approvals.
TAVR sales reached $1.1 billion, up 7.8% globally with stable competitive positioning and pricing.
TMTT sales grew 57% to $133 million, reflecting strong adoption of PASCAL, EVOQUE, and the addition of SAPIEN M3.
Adjusted free cash flow was $2.5 billion for the year, $500 million above expectations.
Cardinal Health grew operating earnings by 19% in Q4 and 15% for fiscal year 2025, with EPS growth of 13% in Q4 and over 9% for the year.
Fiscal year 2025 revenue decreased 2% to $223 billion due to contract expiration but increased 18% excluding it; operating earnings grew 15% to $2.8 billion.
GMPD segment revenue grew 3% to $3.2 billion with a record Q4 segment profit of $70 million.
Gross profit grew 17% to $2.2 billion in Q4, with a 50 basis point improvement in rate due to favorable product, customer, and business mix.
Other growth businesses saw 37% revenue growth to $1.6 billion and 44% profit growth to $160 million in Q4.
Pharma segment revenue was flat at $55.4 billion in Q4 but increased 22% excluding contract expiration; segment profit grew 11% to $535 million.
SG&A increased 16% to $1.5 billion in Q4, primarily due to acquisitions; on an organic basis, SG&A grew 4%.
Total company revenue was flat at $60.2 billion in Q4, but adjusted for a customer contract expiration, revenue increased 21%.
Progress in Breast Health Business and New Product Launches
Management highlighted sequential revenue growth and early signs of recovery in Breast Health, with a focus on interventional sales increasing 31.8%.
The upcoming launch of the Envision system in 2026 is expected to be a significant growth driver, with the current focus on replacing older gantries and expanding the interventional segment.
Dafinchi
