Becton Dickinson Overview

Becton Dickinson and Firm (BD) is a multinational medical technology company that develops, produces, and sells a variety of medical devices, supplies, tools, lab gear, and diagnostic items. Three business segments make up the Company’s operations: BD Medical, BD Life Sciences, and BD Interventional. A variety of medical technologies and gadgets are created by the BD Medical sector and are used to enhance healthcare delivery in a variety of contexts. Pharmaceutical systems, diabetic care, drug delivery solutions, and medication management solutions are just a few of the business areas that make up BD Medical. The BD Life Sciences division offers equipment and reagent systems to detect a variety of infectious diseases, infections connected with healthcare, and malignancies, as well as devices for the secure collection and transportation of diagnostic specimens. Products for vascular, urology, oncology and surgical speciality are offered by the BD Interventional sector.

Becton Dickinson and Firm (BD) History

Maxwell W. Becton and Fairleigh S. Dickinson, two salesmen, formed the business in 1897 as a partnership to sell medical thermometers and syringes (imported from Europe) before going on to produce them. In the beginning, expansion into new product lines was accomplished through acquisitions. The partnership purchased the surgical, dental, and veterinary tool manufacturers Philadelphia Surgical Company and Wigmore Company in 1904. The purchase of Comstock Bag Company the following year introduced the production of medical bags. A manufacturing facility for the creation of thermometers, syringes, and hypodermic needles were constructed in East Rutherford, New Jersey, by Becton, Dickinson & Company a year after it was formed in the state of New Jersey.

For certain of the products it offered, Becton Dickinson remained to rely on European suppliers despite the company’s new plant, primarily due to the superior quality of imported goods compared to those produced domestically. In order to acquire the business’s network of high-quality international suppliers, the Surgical Supply Import Company, based in New York, was bought in 1913. Additionally, the acquisition expanded the range of Becton Dickinson’s products by adding Surgical Supply items such as the Asepto bulb syringe.

Becton Dickinson was forced to manufacture more of its own goods during World War I as a result of the company’s import sources being mostly cut off. Oscar O.R. Schwidetzky, the president of Surgical Supply, who remained with Becton Dickinson after the acquisition, invented a novel cotton elastic bandage created in the United States during the war. The ACE bandage, which stands for “All Cotton Elastic,” was created in 1918 after the company held a contest among doctors to name the new bandage. The fact that Becton Dickinson reached the milestone of $1 million in sales in1917, two decades after its founding, shows the company’s gradual but steady growth.

The family-run company established a reputation as a manufacturer and marketer of items that were better than those of its rivals throughout the early decades. The company kept up with the most recent developments in medical technology and standards through the development of its products as well as acquisitions. A prime example of this was the 1921 acquisition of Physicians Specialty Company, led by Andrew W. “Doc” Fleischer, who, like Schwidetzky, joined Becton, Dickinson after the merger. Both the binaural stethoscope and the mercurial sphygmomanometer, a device for monitoring blood pressure, were inventions of Fleischer. Becton, Dickinson entered the diabetes care industry for the first time in 1924 when it started producing syringes specifically made for injecting insulin. In the year that followed, Fairleigh Dickinson was granted a patent for its Luer-Lok tip, a locking collar that more securely connected a hypodermic needle to a syringe, improving the safety, comfort, and precision of injections.

The employees of the company managed to keep their employment throughout the challenging Great Depression years by voluntarily accepting a number of pay cutbacks. The 1943 acquisition of Multifit, which had been started by Joseph J. Kleiner eight years before, was a significant event during the World War II era. A syringe system with replaceable plungers and barrels had been created by Kleiner. Since Kleiner’s product was made of particularly durable glass, it had fewer breakages and offered its users greater convenience. It also had lower labour costs. Additionally, Kleiner presented the Evacutainer, a crucial idea he was developing, to Becton, Dickinson. The Evacutainer, which was patented in1949, drew blood from patients using a test tube, a needle, and a vacuum system. The Evacutainer, which was patented in1949, drew blood from patients using a test tube, a needle, and a vacuum system. The business opened its first production site outside of New Jersey in 1949 as well, in Columbus, Nebraska. By1950, total revenues had reached $16 million.

Becton Dickinson was a family-run corporation with conservative management throughout the first 50 years of its existence. The business was well equipped for a significant expansion as it entered the prosperous postwar years with a strong market share in medical supplies. The company understood that its established business model will not work in the future. As a result, in1948, the company’s management was taken over by Henry P. Becton and Fairleigh Dickinson, Jr., the founders’ smart businessmen.

Becton, Dickinson significantly increased their product line during the 1950s while Dickinson served as CEO and Becton in a number of other roles. Becton, Dickinson was producing more than 8,000 goods by1964, including a wide range of medical supplies with exceptional diagnostic accuracy. Four operational departments were created by the organization to better organize its operations: medical health, laboratories, animal research and testing, and international sales. Becton, Dickinson bought Carworth Inc., the top manufacturer of laboratory mice, as part of an acquisition effort; Wilson Rubber Company, a manufacturer of surgical, industrial, and home rubber gloves with headquarters in Canton, Ohio (acquired in 1954); many specialized research labs, the Bard-Parker Company, a maker of surgical blades and scalpels (1956). Becton, Dickinson increasingly saw its biggest growth in the market for disposable goods, where it has since established itself as a pioneer. Baltimore Biological Laboratories (BBL), which was acquired in1955, was crucial in this aspect because it was already producing sterile, single-use blood donor kits for the American Red Cross (with Becton, Dickinson acting as a distributor). Sales of disposable syringes and needles, which totalled $70 million by1964, made over 60% of the company’s total sales.

The new management group was also praised for its focus on global expansion. The first such action was taken in 1951 when the company bought its Canadian distributor, establishing Becton Dickinson Canada, Ltd. as its first wholly-owned subsidiary and overseas business. The company that made syringes, needles, and clinical thermometers in Mexico, MAPAD S.A. de C.V., was purchased by Becton, Dickinson the following year, and a manufacturing facility was built in Le Pont-de-Claix, France. The next area to be expanded upon was Brazil, where Becton, Dickinson started delivering syringes in 1956 and eventually rose to become the leading provider of medical supplies. In 1963 Becton, Dickinson developed a disposable syringe facility in Drogheda, Ireland.

The company’s 1962 initial public offering of shares for $25 per share was prompted by the necessity for significant quantities of capital to pay for the changeover from reusable products to sterile disposable items. The Becton, Dickinson stock started trading on the New York Stock Exchange the following year. The business made its debut on the Fortune 500 list in 1966 thanks to its quick rate of expansion.

Despite increasingly challenging market conditions, Becton, Dickinson managed to grow its medical supply business throughout the 1970s. The 1973–1974 global oil crisis reduced the supply of petrochemical feedstocks, which made it more challenging to procure medicinal raw materials. Additionally, the FDA intended to apply the same rigorous certification requirements for diagnostic equipment that it had for drugs. This would cause a delay in the commercial release of new items and expose them to increased rates of obsolescence as a result of technological advancements. Becton, Dickinson maintained its high level of optimism despite the fact that these circumstances reduced Wall Street’s interest in companies in the medical sector. Sales numbers double every five years, and 19% of all sales come from abroad, Dickinson reassured investors that the business was assisting the FDA in developing its new regulations rather than fearing the impending device regulation.

The early years of Howe’s leadership were characterized by the continuity of policy despite increasing regulation; Howe was chosen by Dickinson and committed to the same conservative style of management. Howe decreased his workforce by 13% while automating and integrating more of the business’s facilities. He also removed 14 of the company’s 17 division presidents in an effort to expand his power. Howe’s management was working incredibly well. Becton Dickinson’s marketing strategy in one region, where it targeted insulin users through physicians, diabetes associations, camps, pharmacies, and pharmacy schools, was extremely successful. Becton, Dickinson saw its sales rise to $456 million in 1975 thanks to its near complete monopoly on the insulin syringe market.

Fairleigh Dickinson, who voluntarily left his position but continued to want managerial authority, significantly undermined this victory in the boardroom. The conflict between family members who were determined to keep power and board members who preferred control by a more professional corporate elite was at the core of the issue. Howe remained above this controversy, but a number of other significant managers did not; Dickinson would ultimately order Howe to terminate them. Four board members resigned in 1977. Howe argued that morale was becoming a far more severe issue. Dickinson was demoted to the ceremonial role of chairman and four new, “unprejudiced” board members were appointed. But the struggle for dominance had only begun.

To begin research on a company Howe intended Becton, Dickinson to acquire, Dickinson was asked to contact the investment banking firm Salomon Brothers. To begin research on a company Howe intended Becton, Dickinson to acquire, Dickinson was asked to contact the investment banking firm Salomon Brothers. Howe asserted that Dickinson had destroyed the study and when the problem proved unresolvable, ordered Dickinson removed from the payroll.

Becton continued to maintain its projected 70 per cent to 80 per cent share of the needle and syringe market despite rising domestic competition in the late 1980s. A leadership change and the company’s relocation to a new corporate headquarters in Franklin Lakes, New Jersey, were both significant events during this time. Howe remained chairman when Raymond V. Gilmartin assumed the roles of president and CEO of the business in 1987 and1989, respectively. In1976, Gilmartin began working for Becton, Dickinson as the vice president of corporate planning.

Sales rose from $1.71 billion in 1988 to $2.47 billion in 1993 as Becton, Dickinson entered numerous new international markets and sped up the development of new patented products. The company concentrated its expansion efforts in Europe, Asia-Pacific, and Latin America. International sales accounted for 44% of total sales in 1993. That year, Howe retired and Gilmartin took over as chairman after Teitelman of Financial World lauded him for reviving Becton, Dickinson.

Early in the 1990s, Becton, Dickinson released innovative blood handling and medicine delivery products that helped lower healthcare workers’ exposure to hepatitis and the AIDS virus. Researchers and doctors used some of the business’s most recent diagnostic tests to decide when to start treating cancer and AIDS patients with medications. In1993, the company shifted the over-the-counter market for its PRECISE brand pregnancy test. Becton, Dickinson continued to place a strong emphasis on new product releases with its investment of 5.6 percent of its 1993 revenues.

Early in the 1990s, criticism of high healthcare prices grew, and it became clear that Howe had been wise to switch to more economically sound new product introductions. By accelerating diagnosis and treatment, Becton, Dickinson promoted its diagnostic tests as precise, quick solutions to lower healthcare expenses. Gilmartin departed the business in the middle of 1994 to become the CEO of the major pharmaceutical corporation Merck & Co., Inc. Clateo Castellini, the leader of the business’ medical division who joined Becton, Dickinson in1978, was chosen as his successor.

In the middle the to late 1990s, the company actively developed its worldwide activities under the leadership of Castellini, an Italian-born executive with substantial international expertise. The Asia-Pacific area was the focus of most of this growth despite the economic unrest that pervaded the region for much of this time. The business established a joint venture in China in 1995 to manufacture medical products for both Chinese and international markets. Becton Dickinson established a company in India the same year in order to build a manufacturing facility there. It was one of the biggest facilities of its kind in Asia when it ultimately opened in1999, with an annual capacity of more than one billion disposable needles and syringes. The biggest supplier of medical equipment in South Korea, Boin Medica Co., Ltd., was purchased by Becton Dickinson in 1998. The corporation has begun expanding in Latin America, outside of its two strongholds, Mexico and Brazil.

With $350 million in free cash flow each year, Becton, Dickinson set aside some of the funds to repurchase shares of its stock in order to raise earnings per share. The corporation has completed a number of acquisitions, particularly in the late 1990s, a time of widespread healthcare industry consolidation that included hospitals, insurance companies, pharmaceutical companies, and manufacturers of medical devices. PharMingen Inc., a privately held manufacturer of reagents for biomedical research with annual revenues of $30 million, and Difco Laboratories Incorporated, a producer of media and supplies for microbiology labs with annual revenues of $82 million, were the two significant acquisitions, Becton Dickinson made in 1997 for a combined $217.4 million. Among the 10 acquisitions made in 1999 were Transduction Laboratories, a producer of reagents for cell biology research, Biometric Imaging Inc., a manufacturer of cell analysis systems for clinical purposes, and Clontech Laboratories, Inc., a producer of genetic tests.

Healthcare workers who had used Becton, Dickinson’s standard, unguarded needles and syringes to contract blood-borne diseases were the subject of a wave of lawsuits in the late 1990s that caused the company trouble. Safer needles, according to the lawsuits, have been around for a while, but Becton, Dickinson hasn’t been actively encouraging their usage. The business claimed that although safer products were available for its clients to purchase and more than $100 million had been invested in their development, it was up to hospitals and medical facilities to make the switch. By the decade’s end, there had been a noticeable move toward safer needles, in part as a result of state-level government regulations.

While Castellini continued to serve as chairman, Edward J. Ludwig was named president and CEO of Becton, Dickinson in 1999. A failing home healthcare division that produced products like ear thermometers and blood pressure monitors, as well as weaker-than-expected sales in Europe and emerging economies, contributed to the disappointing financial performance for that year. The second half of the year saw the beginning of a restructuring, which included the company’s withdrawal from the home healthcare market. The business divided its remaining operations into three business segments as well: BD Preanalytical Solutions, BD Biosciences, and BD Medical SystemsThe ‘BD’ label would appear on all of the company’s goods, either by itself or in conjunction with well-known trademarks like ACE, Vacutainer, and Tru-Fit, as part of Becton, Dickinson’s worldwide brand strategy. Becton, Dickinson set a lofty goal for its new “BD” logo: “become as globally recognizable as the Red Cross.” Becton Dickinson, therefore, entered the new century with a new brand, a new organizational structure, and a dedication to making swift progress in what was bound to be an even more competitive time for medical device businesses.

Controversies

In order to resolve claims made by rival Retractable Technologies that BD had engaged in anti-competitive action to block the sale of Retractable’s syringes—which are intended to minimize needlestick injuries—the company agreed to pay US$100 million in 2004. A number of legal disputes between the companies followed the case. After releasing its own retractable needle, BD would face accusations of patent infringement from Retractable. Later, Retractable would assert that BD had misrepresented its own retractable needle brand as being the “world’s sharpest needle.”

A voluntary product recall of several lots of BD Q-Syte Luer Access Devices and BD Nexiva Closed IV Catheter Systems was notified by BD in February 2010. According to BD, using the implicated devices may result in an air embolism, blood leakage, and/or treatment, which might cause significant damage or death. The 2.9 million BD Nexiva units comprising 5 million BD Q-Syte devices and about 2.8 million BD Q-Syte units that were recalled were sold in South Africa, Asia, Canada, Europe, Mexico, the Middle East, and South America. On October 28, 2009, the recall was started after BD received reports about issues caused by air entering the gadget through a certain portion. BD said that the manufacturing irregularity was the problem’s root cause and that the issue had been resolved. According to BD, it has been coordinating recall efforts with the U.S. Food and Drug Administration and international health organizations since notifying customers of the recall via letter.

The Occupational Safety and Health Administration penalized BD $112,700 in April 2016 for safety infractions. They discovered egregious, ongoing health and safety violations that had led to the partial amputation of two employees’ fingers.

Following the discovery that a supplier had faked sterilisation records dating back ten years, BD issued a recall in March 2021 for gravity infusion sets and connectors as well as infusion sets for the CC, GP, VP, GW/GW800, SE, and IVAC 590 Alaris Pumps.

As of 2021, the calculated total revenue of the company was at 20.248 billion USD, the company had 75000 employees and was ranked 177^th on the fortune list for the company with the most revenue.