- Becton Dickinson is acquiring C.R. Bard for $24 billion in cash and stock, continuing a wave of consolidation in the medical supply sector.
- With about 500 products registered internationally, the purchase of Bard could boost Becton Dickinson’s sales in foreign and emerging markets, including $1 billion in revenue in China, the companies said.
- The companies share a number of synergies, including Bard’s vascular access device pipeline and Becton Dickinson’s IV drug portfolio, which when combined will offer end-to-end medication management across the care continuum, according to a Monday press release.
Becton Dickinson also expects to strengthen its position in the infection prevention market, with combined offerings that target 75% of the most costly and common healthcare-associated infections. By acquiring Bard, Becton Dickinson will also expand its footprint in urology, oncology and surgical specialty products.
The deal, which is subject to regulatory and Bard shareholder approvals, is expected to close this coming fall.
Pressure to keep down prices for of medical products and the shift to value-based reimbursement is driving consolidation in the medical supply industry. Last week, Siemens Healthineers announced plans to purchase Medicalis, a clinical decision support company, with the aim of growing its population health management business.
Other recent deals include Cardinal Health’s $6.1 billion bid for certain Medtronic medical device lines and Abbott Laboratories acquisition of St. Jude Medical for $25 billion. Completed in January, the Abbott-St. Jude merger comprises one of the world’s largest cardiovascular device manufacturers.
Healthcare mergers and acquisitions increased 0.9% to 235 deals during the 2017 first quarter, though overall value dropped by 49.3% to $7.9 billion, according to PricewaterhouseCoopers. PwC counted 939 deals in 2016, including pharmaceuticals, life sciences and hospitals. At the time of the report's release, Thad Kresho, U.S. Health Services Deals Leader at PwC, told Healthcare Dive, "There's still a lot of activity happening" in the healthcare M&A space. The recent C.R. Bard transaction highlights just another example of such activity.