(Reuters) -Becton Dickinson beat expectations for first-quarter results and said its board has authorized a plan to separate its life sciences unit on Wednesday, as the medical device maker aims to focus on its core business.
“We believe the separation will position New BD as a differentiated MedTech leader and enable optimized investment,” said CEO Tom Polen.
The company expects to announce more details on the separation plans by the end of fiscal 2025.
Becton’s life sciences division makes diagnostic products such as those used to detect infectious diseases and cancers.
Earlier this week, the Financial Times reported activist investor Starboard Value had taken a stake in Becton and was pushing the company to sell its life sciences unit.
The company also raised the lower end of its fiscal 2025 profit forecast to a range of $14.30 to $14.60 per share, compared to the previous range of $14.25 to $14.60 each.
Becton’s total sales for the reported quarter came in at $5.17 billion, above analysts’ estimates of $5.1 billion, according to data compiled by LSEG.
On an adjusted basis, the company reported a per-share profit of $3.43, beating analysts’ average expectation of $2.98.
(Reporting by Kamal Choudhury, Christy Santhosh and Sriparna Roy in Bengaluru; Editing by Alan Barona)
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