Becton, Dickinson and (BDX) 5 May 222022 Q2 Earnings call transcript

Hello, and welcome to BD's Earnings Call for the Second Quarter of Fiscal 2022. At the request of BD, today's call is being recorded and will be available for replay through May 12, 2022, on BD's Investor Relations website at bd.com or by phone at 866-342-8591 for domestic calls and list the Area Code +1-203-518-9713 for international calls. The replay bridges are now dedicated, so you no longer need a conference ID to hear the replay.

For today's call. All parties have been placed on a listen-only mode until the question-and-answer session. the to turn now will call BD. over I

thank BD's I'm Head for of call Francesca morning, BD Investor and at Senior is results call. Earlier to welcome team, the via of XXXX. and fiscal Good being DeMartino, made us. audio its earnings Vice quarter this On morning, behalf the for released available second you joining Relations. webcast This of bd.com. President BD

our then BDXXXX on earnings our financial our the Executive We Tom The our on a that outlook The embecta, Officer. investors.bd.com. completed QX presentation our fiscal also April 'XX We updated BD DelOrefice, care will the quarter XXXX. updated to by impact details recasted strategy. as outlook can April care financial that on include performance. Chairman, Officer 'XX highlights of release fiscal outlook additional accessed results. an execution Leading of with today. and an Chris Financial that end. former and diabetes will XX, for to our providing meantime, IR business fiscal XXXX, former the business Tom provide filed the excluding diabetes Executive spin-off our presentation and diabetes and Chris Chief XX, discontinued second reflecting assist our historical results performance On for nor results our the models, information we'll call, provide In quarter and and the today of posted will X-K review continued anticipate information business RemainCo recated the business to an providing which the President; for RemainCo. legacy care quarter FY and expect today's May. Polen, BD, was as 'XX estimated impacts fiscal BD's for end we'll XXXX. of are financial press the QX President provides years Vice affect of diabetes Chief for FY operations material discussing care information at of and today's to was be 'XX first the from call available includes both website financial results, operations of XXXX we're re-casted from provide We FY former we're QX of a don’t of for subsequent be be XXXX On you the give former estimated of differ updated the and

We also do not plan this after to care comment on diabetes quarter.

our addition that on can prepared In our presentation is information earnings on find IR to posted our this website. you remarks,

and will Medical President Alberto Following the Simon President be the the of segment of Life prepared Campion, Chris remarks, of Q&A joined Sciences the our Dave Mas, presidents, segment. by segment; Interventional and session Tom President for segment; Hickey,

our estimated that, margins, such term defines results to specified, base refer Before over which hear otherwise turn Unless it unless very comparisons presentation noted. as When relevant attention With we disclaimers to a get percentage otherwise today. our the SEC basis the on call you testing. you'll website. slides which want I unless Relations a period we the refer also basis as am specifically presentation COVID-only slide, your period. and year-over-year statements you all are versus forward-looking the will the and Investor excluding period, basis we we the Revenue any FX-neutral be fiscal on disclosures would making filings, be to remind pleased to read to revenues that I encourage Tom. in we today, started, I in base earnings to available referring changes both to an will I to are given of are which calendar it on note period.

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Tom. Thanks

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performance incremental increased to the impacts, year in to offset fiscal be We given inflationary our half focus in expect largely back an of to mitigation our initiatives. these company-wide QX, our strong able execute

today As results BD care, our basis include includes diabetes care. providing legacy half guidance are diabetes that on a we first

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through margin. expansion BD level period. margin the margin of re-casted can things absolute operating legacy based of basis deliver pre-pandemic 'XX we are same the points being now of Additionally, notably, end operating we by than all XXX about base targeting was on 'XX know equal, that today, RemainCo fiscal time what against BD, year XX% think And year which fiscal more the we

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our BD we are advancing summary, objectives. XXXX strategic in So

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We will with our Vijay Kumar Evercore instructions] from take first question ISI. [Operator

active. line Your now is

which on midpoint X% Hey guidance My first did question. at half thanks for in implies The just change on basis? is half the one right. I'm half? this second looking for X.X%-ish here. half. half organic guys. any or organic second first the BD X.XX%, the you to Congrats print mid a those taking I back make Any We timing of sure here and accomplish versus half first good the updated my cadence to legacy an first in want maybe underlying close or the and for there impact

Chris. I Hope well. question. appreciate the It's you're

correct. math is Your

on but basis. a items, in period extremely benefited about year-to-date that also some X% from growth one-time headwinds some again, had So half our we here at we strong too. Obviously first overcome

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things there. I to a think there's couple contemplate

Of recover. course, impact a they QX pretty will significant as there in China, be

that expect started We recovery -- the May. recovery in

We make to June the in to of through that expect majority the back we up ramp that half. and expect

think business. year particular our have our have We do half sciences back you Plex in of we did some comps of Tri the Additionally, the life as [ph] launch there.

that So was that for a peak if you look business. period performance at QX

couple there but XX-plus half X%. that growth top on comps cycle China into half, outlook through of X.X% of there's along back the kind of in of a long-term with with will situation is consistent to QX a QX the our front So consider

So all in a strong really year.

point performance the would to, I from thing look beep actually business you than the other the if line increased at quarter a we think our base top QX. on standpoint, I organic in guide more the

So implies it performance. half stronger actually second

did I So that outlook, despite our half those of headwinds noted. we some actually strengthen second

So hopefully that helps.

any LRP in And helpful $XXX laid the guidance you the The plus deck us. on easier. Are longer earnings. for on margins and double-ish asking there fiscal one I analyst earning here, any for that, to Chris not pieces early 'XX, we know I think thinking 'XX but diagnostic specific moving COVID for a appreciate all that in maybe comparison was That term in out, issues I'm comes it's for off, cadence longer-term details guidance, Yeah. mind. the drop the when making about think top and testing my FX, X.X just

fiscal expect be for So 'XX think in $XX.XX base still the we over fiscal intact LRP of about when to top to base? should the that $XX.XX you 'XX,

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COVID year. important plays to an the out see need well. caveat dynamics, just think we how So Obviously I that see to plays macro-inflationary as how environment out this

One think I the big growth well getting profile, from the we're but point plus some in of the strong tuck horizon, on the definitely enhanced year. this long over five-five would over focus to obviously you're R&D given term our this year-to-year, benefit long out there's I horizon, but the term can we're north you play definitely that be considerations, acquisitions. year, fluctuations what a seeing innovation So and

of above lift just five you'll tuck-in was which part our points. plus. the one-time as was opportunities. XX XX actually five, basis basis that matter that points our was did basis acquisitions we of profile on them. reminder, fact, our acquisitions, double-digit enhancing a those the was a and with What of see never five are They're about That part year-to-date provide As These taking points. growth growing profitable five, a XX associated by plus basis roughly growth

cycled So once organic true we've over anniversary. the growth

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result this that. You a XX point just of did here, a basis lift see as in year alone,

that growth. drag talked we've about, a As was on

when One, we couple in shared things. committed we As points, year. a that you basis going think margin, were a of the this one I very deliver year for was to important is had us of key operating XXX half

better simplification cost XX XXX of inflation with doing picked that face I area know we environment, that how quite normal talk all it's to over we've made that, you going we're are in margin only commit the if And done don’t XXXX, XX%. the our that do timeframe. the more did actually ask track, up Not if of expect year, term. through the you long basis inflation cost going back operating inflation. underlying if a to we points enhancement carry change a by are improvement. this being and So happening actually the get We've in That do is about X%, testament value creating inflation over can think legacy we're more think you the that, we're that compensating of to improvement in inflation, but talking we to for that about to structural programs. than X%, the we we

to year hopefully point margin little strong strong feel this bit this this environment of continued settles normal deliver growth course, may kind of to long-term at year. next year. here, really good improvement exit that more of certainly assuming we we back within as about Day and we There Investor our expect typical outlook, But definitely choppiness we're year each a that. into be year-to-year some in in So from

Chris. helpful, my for thanks questions. That's And taking

Travis Steed take of next with our from Bank We'll question America.

Your line is open. now

I'm you I have bit see get on Hi, margin FY operating of thanks 'XX. bridge. question on color the about to 'XX, XX.X% somewhere operating expansion like for Chris, points on of thinking you're great of basis the just margin top the some 'XX, range. gets it the basis I'd as points you to sounds comfortable congrats little XX quarter. base in a a of love XX% basis and points XXX for taking more low XX When around that kind to

be love see we Just for range me that's which $XX year. low if thinking to should a to next gets how earning like about it,

comments any to that. early have If you

'XX it's Yeah, the relates again, I premature thanks. little as a it think question. stage. appreciate to at no, I specifics Look give this to

been the relatively said though I XXXX, with, adjust points, with for And delivered kind glide because impact ratable expect 'XX embecta. call thing to there. what going that'll would basis XXX end to you're you're you year, operating certainly structural I it do legacy, to think into to point get I the have of the of -- of still get carry to a call XXX a inflation period, by only out points going if basis my get I will that's to this The it think is back 'XX. XX% transition over to path be ongoing, margin

sense. as do normalizes makes ramp how So over transition view more lift as year I bit think probably a a and that of that the environment would curve is get little time you'll that if I a

Thank incremental does. some the at on X.X% pretty some a as you're the 'XX thinking about high that X% be and how about quarter, all it to the much Is then we'd range, more into inflation offsetting of think look extra well. should when kind we we of the little it And this was way pressures get color. have that appreciate forward, that. Yeah, impacts X.X% that when quarter. bit for color I you last that going you essentially the offsetting, of it you've X% also seen pricing, to

it I'll morning, in to Chris. over this Travis, turn and start and Tom Hey is good

to on as on to two no our in looking terms the inflation we very the that obviously made was impacts be statement as challenges. the be were -- well And going what to is think of from think I performance those. would avoid clear And best while and company supply navigating coming we're over committed early actions see chain saw environment approached chain earlier a our very of and we last I recognized going entire team And our of in years. has sometime our this inflation the as inflation that seeing side, the well. quite year, supply we last there team the industry mindset been you that's challenges, through commitment at we that can to in that

seeing really is environment. and our need that as saw And notably overcome accelerate, initiative. recode of the important are products all part material cost the our they're products get particularly efficiently we taking so out, at lower navigating this actions then and our a we're optimization those a We're product see our We're levers which I've of mix. got executing That's adding resin, areas just can in customers this as more to and move more we as increased in last to plants of and always portfolio acceleration run of plants what environment. lastly, complexity chips, and we focused an plants, empowered out with those strong being actually complex our And products been that from improvement across strategy. range that simplification our resort. growth revenue continuous margin points part And that, levers looked of and this that opportunity, team of pulling that an number business. are exiting raw we our environment containment when additional general We on our shipping the teams and most, that we're pulling in this inflation are in driving the

to that We are get well environment. seeing as we're portion see, are can just those, are as costs a actions and in taking you overall to pricing people this the of inflationary able which

really customers So additional to comments? ensure the Chris, all our done our any that work and being to serve we're that's there, and proud team's patients of best positioned of

some think growth of strong underlying really is only creating the drive that to just I build think is to profile reinforce simplification. opportunities the I

marketplace to thinking modest thanks. picture in versus value skew the of product for right? things that of launches The back It's will form in is that of way value For as price. our the growth rationalization mix, to just the innovation create unlocks rate. It absorbing margin, enhanced inflation the and extremely though. look We're a drives that strategic within more level new but a value example, price bigger efforts, really get actually is relative

Thank you.

with question We Robbie from will take our Marcus next JPMorgan.

Your line open. is

taking for the great. and question on congrats nice a Thanks quarter. Oh,

I of sounds wondering like into from on you're I kind in if here, And second start we're maybe up like, if guide benefit but implied like it the looks follow I it FX. Sorry to here, there's focus was half flow adding 'XX more more to see, the would I, to fiscal a we're at forward. inventories. get sort something to going start impact. power earnings previously. to to see normalized cost Thanks. second going to imagine that slightly the of I'm it's going If if through higher than in just really trying of impact or half, that's a $X.XX

is morning. would make maybe Tom I just this comment, a Robbie, good I'll say,

describe a On on I we're a scarce investment increase that's inventory the that strategic making would very what situation, materials. raw to inventory

to think get. materials about So or raw difficult are and that semiconductors chips components like other

industry into those. companies challenges running You can see on across the

in to make. time. impact those that serve a higher end think very a I systematic as the be stabilize up assets down have take to inventory over commitment able don't that that secure We our -- And our we situations best we'll and customers. that's taking we'll approach to

term, we customers. not see strong it's to know, very inventory. XX% don't you as that cash ongoing on strategic this continue cash an all. focused XX% transient and free We us our we've conversion our from on see we to have target. very, that that off So at moving as as as, flow a and for a focus XX% paying been plus changing a paying ongoing for that's investment long just an very We're And as off flow

of the second I'll then full We increased of anchor to at as discussion. the me course provide me context, half by let sort Yeah. Thanks growth. always adjustment, it let way terms further can question, basis me, you and about top we the the in kind best organic points just of can engage set. But let think is and some year Robbie, of of in our line on the I for actually XXX midpoint. $XXX million of a the guide the

at we $X.XX just about which you is EPS walk BD look that through raise. If with under provided, through, the we're basically dropping had a drop at that margin

the So guide up delivered profile stronger what nothing's growth in above was QX. we've reconfirmed our the changed. as profile result, We've for margin actually taken the, a actually

margin full on mix just a no from in it margin remains a and/or currency margin through So standpoint really fluctuates don't those obviously think There there's everything there's drops markets. intact. unexpected mix there. at year The based I currency rate. dynamics anything respective

played has as expected. out fact, year the we that about talked carryover a As was matter benefit that of the into currency a

last in this really decline the did QX anything see there's quarter. you actually operating to contemplate think quarter from to from and watermark, basis versus QX think to don't then primarily it margin margin our and going low can on what to quarter. I the QX, to had you you points improvement So nearly year-over-year, think year sequential of fact be is will small margins QX in expect QX, basis this that We what XXX to be XXX was did by there I increasing there the a Op point driven QX we're we second as a half decline and

We have will increase a step there.

there points But of base it but sort XXX for see to Investor adjusted last glide XXX way increase of big the half margin year phase was what jumping a continue as for which which inflationary relatively on do our in question in Quite dropdown as to we're that the that small basis off the of point especially about of pro is full set if again, going this second improvement progression for embecta, we your think a us long one forma stable, of low said think the we'll of think I year. the year, this over And point Day basis into term. when should the then is important so you'll half. So of pressures, part about you you accounting I from for from tie forward, year the nicely full up track commitment. the

from in assume testing here, questions going agreement flu sneak size was the the combo revenues very that a Thanks. or just with of no quarter, maybe And should Great. forward was two quick we this more and XX revenue embecta, what one cannula COVID just there's the timing in issue?

contribution. line, highlighted the which there'll what's a be contemplate as XX benefit I small points There maybe as a small the would one We There more Veta I holistically. some party contribution agreements. BD. can second TSA agree We full as is beta standing There will standalone of It $XX Really third And to be various Yeah, our year will there in opportunity gives as, lift. public next to basis can, part spirit top company. costs that was There because public between it take of be, support We again, will leverage our, documents the noted supply and do be a stranded substantive. it was a the but this up the of the spin. that. us and the year worth we to had Obviously, them. to an it not million support typical quite said year. won't double in year. it next was, was TSA

basically standpoint. we, as those supporting stranded we BECTA us then goes down And parallel. keeps in So whole shed cost it the TSA a down from

basis on no a from there's net an impact income. So

to not expect lift year, next So you but should quite double, the XX

we're maybe just give we over the, momentum was in COVID color but as some and, a Dave's combo IDs answer, and question, demand not across seeing life in to a, sciences just both significant it just and Maybe test strong overall could BDB well. the what turn

So, Dave?

piece, which test, XXX for and at the million is antigen remember testing testing that hear just so, molecular tests. Robbie, the COVID testing. to just science we date. Chris dynamics I talk the us want that's single for question. Tom. have highest little bit, around you thank a for that just that I Thank, quarters about, a mean, now, quarter in tremendous growth If back I And talk to XX% level, the the recognize the world mean, like was And just XXX life Yeah. successive two you million you excluding overall thanks pulling the about year quarter. segment the colleagues

recall that you'll our year all are because think we were the, some half COVID also we performance Moderate in that, I said we'd testing. of the to seeing biasing the sort to moderation of first

the We expect balance that the to through year. moderation of continue

if to some expect as as you that's Chris what lot assay we're a think There period that's in value the expectation growth and the puts overall combo in testing that's, that that the come are So same perspective see from as I both on was dynamics This the very mean, platforms. and said, prior and mix We the We've that year forward, for is veal with in a, combo. we do of of takes a testing a not business. the obviously said. playing strategy of there COVID close portfolio. we the of base full from. our overall we XX% to specifically given out growth had as, where COVID overall prior max flu compared our saw the year, to going a because about number do

flu dynamics number As when getting 'XX Yeah. into more call endemic now. nobody the think early year, knows too just QX the of be what Colby as what that would for going will move It's to full of the even be early for to to right to out the, an we are situation.

things maybe kind season Thanks just in comprised flu what there you terms last the, you other to little revenue and give just almost Robbie, flu no was to small of of obviously a back a David so color got couple would've there, the season. year,

Additionally combo proposition. higher obviously a slightly value has the

from benefited that. You

was, you tests. in to get demand it lot little did to a that bit stocking new was period there hard where giving. it testing was was a of access and It of Additionally have

having those back were. in that, certain total. still were where back especially sort in So underlying, we of again, factors sciences that played for water into the in in, of that adjusting the But strong really areas, life and both

moment Dave And base think I the of as Robbie, we've we test said said, that be will test. this launched is from flu kind replacement Tom, as, test the the for combo to the the go

that we, completely was testing, as so last continue was mentioned, this was expect was we that that year year something flu we Chris causing base we do see And infections, back flu forward. would which going did as, think that absent as

as and that, be that that size year do product to combo which flu at believe go-to rate varies market the the each in test. our But back course, revenue of Of for our, continue now that test persistent we every the will year.

Yeah. And we forward just go needs the a on would our what basis. the looking more there very just world patients what, at just unmet on Rob, piece, for, around piece, be, one just one are strategy we're committed to

December. potential are more the, home around to for So the platform tests day we we analyst using talk the acquired combo at developing an to, the we, in in, combo we committed test, and that

still continues the it better innovation though. piece on of up gets obviously and the timelines as firm we'll and, commune So as that, strategy

we'll Fargo. Larry And Biegelsen Wells take with next Instructions] [Operator from our question

question and XXXX, is any timing Good outside Alaris talked launching fiscal you here. Thanks the morning when it that's a for for, in I on about fiscal update last the congrats XXXX, back in the quarter Tom, us assumption on us pump reasonable year, for taking guys. is investor new on nice at believe. and the the

Thank wrong 'XX I'm remember on Sorry was update the three, I that? but date. it or on can't you. if if any

that's priority. on Larry, our that we tasked We've back Alaris question. shared submission occasions number the as had getting the our is you, updates on, several it not the that we mentioned investing that resources Thank and make we're timing, on before, And Yeah. for in mark, the as, in and one team on providing while we're any had happen. the confident leadership are to

we, it's applies the submissions not how particularly these that, inherently prudent our given filing. certainly just to think so, And predict still timeline are. we to And that complex

that that of the information the and we to focus and pump gone excited sure continue remain year. So Europe. into of guidance what's as, product factor is on remain proper get medical don't clearance And this for in numbers it us in, as update an we'll this, continue but FDA we clearance therefore making expect we will progresses, as doesn't to remain we later launching our that focused said, to that. has very that terms for XX the had in our provide on for necessity later our new on 'XX, any No, that in

So Yeah. absolutely,

And then hurt supply that the just constraint in you you thank you other supply that you. were that Biosciences. questions. the there Thanks taking this quarter? Thank Can for constraints quickly, quantify for and,

record We across me make let a, Larry, on Yeah. supply Biosciences. a to backlogs certainly maybe comment on, company. overall ask the then Dave saw and comment constraints on

certain across but demand We to you with to So saw for go suppliers. though in what saw our raw We from Biosciences a take to demand ahead our ability see of we run post turn part our times a, we to we put record And materials. the We And each more work factories backlog partnerships to part, cases, certain that did We help with product take, materials. across folks we own secure optimize shortages of to to customers, Yeah. even end so specifically as very in aggressively those them you, number was a even producing what segments. very seriously but far than supplier getting to, of revenue. suppliers Dave. as even help raw segments. look confidence certainly to every one transit much that's gives were get day every our higher working We in our that's each as the we supply, categories, to shortages see in and us we out of levels. plants. longer And, of at record are outstrip

the Larry, question. thanks for

But instruments. we've we, remarks, This So get. been is, I of it It the quantified anticipate is Chris in look we've supply leverage in his done got, of overall, we've the when an absolute side terms had some relates of we, clinical this procurement for said the the sort as us. at topic instrument we've the supply the in mean, backlog with the primarily we not of number you to securements with of, that business. that able to

expect clear over the of the We course up to year. this

very So short timing is of that. in topic about mitigate sort on an And confident term is, What team any the the it we're just the are doing year. becomes a very instrument base is strong. we obviously is research for strategy. still us allocation to working

aggressive to So Of just And everything we components. then driving those have what and electronic hard procurements we're those get on out. prioritizing chips we're and

a instruments lot of sort go. ready have to ready, We of the built,

as chip back in, execute So half come the in those things just we'll of and the year.

Wise with We'll question open. Stifel your is from take our line next now Rick

Chris. Hi Tom. Hi,

quarter, beyond help beyond into there? volume the the comment it Let's more could is. look about execution? curious you think start how Thank maybe a and, by electric Is the Maybe it at expansively. in us sort on year think pipeline, comps digits And performance recovery, interventional comps you into quarter. April and had there sustainable happening are I last all things. what's help BD to is seeing strong Clearly that the surprised procedure helped ahead. couple China general, help haven't but us on key the, and dive us through product, it perhaps just off with drivers interventional, a we double was continue next the next of drivers not little a you. recovery Is, chance that as is and we understand, that

Go ahead, Simon.

had China Listen, in, And team from, and then they on the, plans the We, our and units oncology China and still, past a, certainly and, quarter sterilization and by, in we Rick. has just a drive to morning, forward. Encore we last across I'm helped some certainly for is some by over and in all But several relaunch Ben in led Tom fir particular begun trying that prepared of China, the track very was And, also the we're, all quarter on are and ordinary lesser as now, the recall portfolio. doubled all that's intervention past had know business proud day and we're analyst even out now begun execute heard surgery. heard us as in you'll the but intervention performed extremely alleviate do that to And complex quarter that NPI reflected across day, particular. the that the in we helped very, Good alleviate, in, in our that they, focused executing peripheral broad strong months, the well extent frequently that to those, you his with And, relevant well our, they, acquired about say specifically by on, they all, BDI. the ESKD the business perform are his, has of say to on moving in as and, competition. you with And in that community broad solid programs future, reflection in that's do the since a the of I've backlog as, in, as UCC inter business all to they our was [indiscernible] Novo. might in you that clinically forward compare in have please in three and firstly they in, all, revenue China. soft business performance innovation in of in, in in the a from helped analyst extra that's, bar we probes and in mention background since about in, you, in quarter at outlook shared peripheral again, for areas very been has us, remarks really and and BDI that we challenges had the

one supported with which in I two that's brought We're by in we've year the and will next the in be a weeks. market customers was and bring in we back team the to Chinese version and our into three space. the And the the pleased in QX our data then relaunch And and response plans super the sales you very, data our unparalleled driver in shared van certainly The And, anticipated space our, geographies, a our, has to year, And made late and study to in executed well the this we So back as just TIFA from of which, space that's, puric growth. expansion QX, last And team begin to biosurgery that in year is last Venus the that to when platform vernacular that that product. China biopsy with investigating particularly think the clearance the due we has of early breast. acquisition, QX categories couple a referring put and, patients in would the well, about to in several And our launch acquisition pilot of comment that. finally driver PI do that to the in expectations years the with refer do then receive venous we mail next the several, well. of hold quarter. that expected with in or, on has our, that as we and to the space. And breast here then but the we're in imminently. again, expect be business over which this very track just will the well tissue very, very, thrombectomy enrolling very catheter performed device, a the strong the say, launch position next to, our clearance that us hope expect quarter on which our we now, really the continues other that's or acquisitions a, a which performed for market to to, Tom hope I close exceed very puric, NAFA UCC then for anticipated a we for of the will the acquisition

of momentum M&A and the So a lot in in behind lot the of, across field. usual businesses innovation PDI executing and all a ways team organic the

you Tom I and up That you're love follow investing language, could three sounds great. I in irreversible if forces. your highlight, Great.

commentary you're your going your opposed little going a as just is towards M&A Chris's so X deploy the to priorities. question and I my to So reflecting cash well. clearly on billion repo that about surprised it's was share position more

if on side. perspective, priorities help put think about and the all could us M&A that maybe in just your So you wondering

Is it you. for Thank informatics, top What's robotics, new Okay. mind care? of you. AI

and Rick, I'll you Thank Sure. and, Yeah. to off and for I'll, the question, I'll it then start Chris. turn

for looking approach at durable our and at analyst that And past year at, our in invest we time really our that which our, performance had of described a date and we deliveries as peak an may prepared rethought we core that think we view how in we've So, to on had actually I are absolutely portfolio everyone, portfolio milestone of, how in large to Hopefully over several connected have essential and for we're top we've that that we, time that on important remarks growing increasing industry the execution where we're, and growth. both. pleased those healthcare day, care, smart, you solutions. focus the is say my performance over years had outcomes. heard to with we've there. fast the something really something the there's capabilities. me disease really And transformative mentioned, new chronic three XX% areas proud that's And launches, a momentum care settings, in quartile R&D of And in the that, you said our last I takeaway BDS reached is we're

shareholders really with much much M&A as to your that announce look as look at If is all very over lot executions. And the for on also giving point, we're acquisitions tuck We're us track, staying go executing strategy, growth. very a right? creating making well, We on strong we we're and those describe core you value M&A core, our of very out you're seeing on XX% in to of that we're confidence Chris and the we've we very in the pipeline adding We've how strong that. which milestones us out the, LRP focused have we're through as growth that got things growth. and the those pleased been, we're and buy our track, years to for and heard doing. with those you that And ahead day that solutionaries. of look high don't top those at shared in value and got We've transformative disciplined at growth tuck analyst sure a we

gonna continue we're So there.

continue if look We is BDS to do but pipeline. there, ahead, have we creating opportunity that stay active we're men, a in so rate see gonna this for very us strong, incremental robust opportunities growth the and actually and that We for shift think as disciplined upward. we anything, to

over years the the cash spin. As how using in the, terms next we look the of we're ahead coming our from decision and

it turn to on me over Let Chris that.

Yeah. Tom. thanks question. Thanks, for Yeah. the Rick,

he that profiles three all is disciplined strength. be from strong strategically underlying course conditions strategic of other a So requires and thing. a to a just have allows that, of extremely It spin leverage balance decision this XXX as, the our be the, double Actually we're strength, discreet growth doing capital bit think actually nature that's the prioritize in portion allocation separate that drive so be fit for that of support remaining to the, on, that or I flex a we're to intact a S forces Tom gives do profile, free a margin outlined of little will then about Tom strong just maintaining Sherry the We irreversible market financial to billion associated the that transformative script of and spin our very lot outlined down And actually towards with the million taking beyond bias and which of going think actually identify purchase. dependent on we that, between share with smaller first debt Paydown, all, strategy will of we're strategy dollars tax shared exactly to against that about remains that net capital allocation allocating debt. us What strong either was position most about. solutions. considerations. consistent and the those plus articulated ratio, strategy, us and, the but you opportunistic have purchase, as important that's

with, to ratio sure M&A strong increased dividend another any to make from our, half those at know look that of will our value our, continue payout continued R&D X the minimum would drive of our we billion be where prioritize tuck doing by repurchases we to after shareholders. and We absolutely dilution spin And have share So actually flow we course would in agree BD cash investments. one way, would to we post excess higher priority. that about But a comp. then to cash which we expected do all avoid of importantly, things base continue did to the

executing the now. that's strategy Thanks. we're, So capital we're that allocation

line We this Tom the Polen remarks. turn back time. over any have program the at for questions or will I on further closing to no additional

profile, strategy. all execution diabetes of you continuing And everyone our care across three thank positioned by today as of and joining of pressures. I continued And amidst the increased guidance BD very seeing now We've that for, Despite operator. strong our call you the on points And couple performance to segments. base macroeconomic times. hope strategy. execution, all had for to a away completed we're key our well today. Thank deliver for delivering driven our in This strong We're EPS margin XXXX uncertainty. growth strategy, our uncertain we further our led spinoff enhanced Okay. successfully driven has BD revenue continue is the business today discussion value questions. innovation we market results. is by of part took and business which from simplification

and to customers. As are production clock listening a and are we healthcare BD said our by moment those to I we're products processes, to every availability every company to want on I've of BD wrap I the and thank take while today's essential teams call, approach thank up members reshaping the as just around ensure to of best mindset. and simplifying durable both to challenges, XX,XXX innovations doing being who our the who growth future want our transformative opportunity the providers and who network, team today our working industry our want so outcomes are and that to I providers, every our navigating times and and And and improve many to that. above are portfolio, the that to macro for beyond support who exactly working core focused of and is And in patients bring are thank make patients to market and for our teams we're with stronger at doing new challenge going our working a through solutions.

So thank of all and you well, for attending be today

does you. webcast. Please audio and your today's wonderful Thank have this time day. at This disconnect lines a conclude