By Justin Dill, Jacob Lindamood, David Stauffer, Mihai Prisacariu, and Jamie Zikos

Transcription

1 By Justin Dill, Jacob Lindamood, David Stauffer, Mihai Prisacariu, and Jamie Zikos

2 Becton Dickinson Company Overview BD has been a player in the MedTech industry since it was founded in 1897, originally selling needles and syringes Today the company produces 80% of syringes globally, but this is only a small part of their product base 3 segments BD Medical BD Diagnostics BD Biosciences

3 Becton Dickinson BD was the 12th largest MedTech company in 2014 Global Presence Locations on every major continent Over 30 subsidiaries, in the U.S. and abroad BDX had a share price of $ as of December 1, 2015 Heavy focus on charitable donation and sustainability goals Company Overview

4 Retractable Technologies Lawsuits Retractable Technologies Lawsuits 385,000 needle-sticks a year 80% of market Retractable Technologies Superior product VanishPoint

5 2002 Lawsuit 2002 Lawsuit Decided not to licenses VanishPoint Retractable Technologies was pushed out of market Group Purchasing Organizations (GPOs) Sherman Antitrust Act Settled for $100 million

6 2007 Lawsuit Federal safety laws Not up to the market standard Sharpness and accuracy Public perception of VanishPoint Forced to pay $340 million BD is dedicated to producing safer and more reliable products 2007 Lawsuit

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8 Why the Strengthen Medication Management Opportunities in New & Developed Markets Why the $12.2B $12.2B Merger? Merge? Improve Quality of Patient Care Meaningful Value for Shareholders

9 Strengthen Medication Management Strengthen Medication Management $20B Market Drug preparation in the pharmacy Dispensing on the hospital floor Administration to the patient Subsequent monitoring

10 Improve Quality of Patient Care Improve Quality of Patient Care Addressing hospital s unmet needs Increase efficiencies Reduce medication administration errors Improve patient and healthcare worker safety

11 Opportunities in New & Developed Markets Opportunities in Developed & Emerging Markets

12 CareFusion Lawsuits and Recalls CareFusion Lawsuits and Recalls Kickbacks Dr. Charles Denham received $11.6 million to promote ChloraPrep. CareFusion agreed to a settlement in the amount of $40.1 million Kickbacks Marketing the product for unapproved uses

13 CareFusion Lawsuits and Recalls CareFusion Lawsuits and Recalls Class I Recalls Avea Ventilator Recalled in May of 2015 Alaris Syringe Pump Recalled in June of 2015 Malfunction in software and hardware in regards to stopping/starting fluid delivery

14 Who is CareFusion? Clash of Cultures Old Young Slow-moving Agile Safe Entrepreneurial

15 Recommendation 1 Recommendation 1 Becton Dickinson should fully integrate CareFusion into their operations under the BD brand Transform the merger into an acquisition Expedite on the safety improvement process Streamlining through this integration

16 Recommendation 1 Recommendation 1 Cambridge Trust Company Investment company Sustainable & Responsible Investing ( SRI ) First hand research Strong financial position

17 Recommendation 2 Recommendation 2 Create promotional campaign focusing on improvements in Becton Dickinson s safety and reliability of its products through investments in regulation training programs. Targeted to the general population Promote continuous improvement Press releases & traditional ads

18 Recommendation 2 Recommendation 2 Press releases Explaining the details of the improvements Business & Healthcare newspapers Advertising campaign Portray safety & trust to consumers Television commercial & print ads

19 Implementation Implementing both recommendations will address the safety, reliability and trust problems created by the merger with CareFusion.

20 Q & A Session Thank you!