BD (Becton, Dickinson and Company) (NYSE: BDX), a leading global medical technology company, today reported quarterly revenues of $4.784 billion for the fourth fiscal quarter ended September 30, 2020. This represents an increase of 4.4% over the prior-year period on both a reported and currency-neutral basis.

"I'm extremely proud of the team for their execution this quarter, as we delivered sequential improvement across each of our segments and successfully launched our Veritor SARS-CoV-2 assay. Collectively, we drove mid-single-digit revenue growth, building on the strength of our COVID-19 diagnostics revenues to overcome headwinds from both COVID-19 and Alaris," said Tom Polen, CEO and president of BD. "Looking to fiscal 2021, BD remains focused on partnering with governments, health care systems, and health care professionals to navigate the COVID-19 pandemic, ensure access to rapid diagnostics and enable care for patients around the world. We are aligned on our priorities and steadfast in our commitments, including completing our Alaris 510(k) submission, investing in innovation and strategic growth initiatives, simplifying our processes and empowering our organization."

Fiscal Fourth Quarter 2020 Operating Results

As reported, diluted earnings per share for the fiscal fourth quarter were $0.36, compared with $0.45 in the prior-year period, which represents a decrease of 20.0%. Adjusted diluted earnings per share were $2.79, compared with $3.31 in the prior-year period, which represents a decrease of 15.7%, or 15.1% on a currency-neutral basis.

Segment Results

In the BD Medical segment, worldwide revenues for the fiscal fourth quarter of $2.318 billion decreased 4.9% from the prior-year period on both a reported and currency-neutral basis. The segment's results reflect the BD AlarisTM System remediation in the Medication Management Solutions unit and the impact of COVID-19 across the segment. The impact of COVID-19 is primarily reflected in the Medication Delivery Solutions, Diabetes Care and Medication Management Solutions units. These were partially offset by continued strong performance in the Pharmaceutical Systems unit. Within the Medication Delivery Solutions unit, the recovery in hospital admission rates and non-acute procedure volumes improved sequentially from the fiscal third quarter but remained below pre-COVID levels in the fiscal fourth quarter.

In the BD Life Sciences segment, worldwide revenues for the quarter of $1.488 billion increased 31.2% over the prior-year period as reported, or 31.4% on a currency-neutral basis. The segment's results were driven by strong sales related to COVID-19 diagnostic testing solutions in the Diagnostic Systems unit on the BD VeritorTM and BD MaxTM platforms. Routine diagnostic testing and research-related activity improved sequentially from the fiscal third quarter, but remained below pre-COVID levels in the fiscal fourth quarter.

In the BD Interventional segment, worldwide revenues for the quarter of $0.978 billion decreased 3.4% from the prior-year period as reported, or 3.5% on a currency-neutral basis. The segment's decline year-over-year reflects the impact of COVID-19 across the segment. Elective procedures showed sequential improvement but remained below pre-COVID levels in the fiscal fourth quarter.

Geographic Results

Fiscal fourth quarter U.S. revenues of $2.752 billion increased 7.4% over the prior-year period. Performance in the U.S. reflects strong sales related to COVID-19 testing solutions in the Diagnostic Systems unit on the BD VeritorTM and BD MaxTM platforms, partially offset by anticipated declines in the Medication Management Solutions unit due to the BD Alaris System remediation.

Revenues outside of the U.S. of $2.032 billion increased 0.5% from the prior-year period on both a reported and currency-neutral basis. This reflects strong performance in Europe that was partially offset by declines in China, EMA and Latin America.

Recent Business Highlights

The company expanded its solutions to address the COVID-19 pandemic while continuing to invest in its innovation-driven growth strategy.

• During the fourth fiscal quarter and in recent weeks, the company received CE Mark for a number of new Life Sciences solutions, including:
  • A combination SARS-CoV-2, Influenza, RSV Test for the BD MAX™ molecular diagnostic system, in partnership with CerTest Biotec (October 21)
  • A product for assessing immune function in COVID-19 patients (October 16)
  • The SARS-Cov-2 assay for the BD Veritor™ Plus System (September 30)
• In addition, in the U.S., the company:
  • Received 510(k) clearance from the U.S. Food and Drug Administration (FDA) for the BD FACSLyric™ Flow Cytometer with the Integrated BD FACSDuet™ Sample Preparation System (October 5)
  • Submitted a pre-market approval supplement to the FDA for the use of the ThinPrep® Pap Test™ PreservCyt® Solution vial as an approved sample type for its BD Onclarity™ HPV Assay (September 23)
• To date, the company has received commitments for over 800 million injection devices in preparation for COVID vaccination campaigns, including commitments from countries such as the US, UK, and Canada and non-government organizations around the world.

Corporate Responsibility

As a purpose-driven company working to create positive societal impact, BD has a long-standing commitment to Advancing the World of Health by expanding access to quality healthcare and supporting healthy and resilient communities throughout the world. Recent and fiscal fourth quarter highlights include:

• Publishing its 2019 Climate Change Management report, demonstrating the company's support of the recommendations of the Task Force on Climate-related Financial Disclosures and ongoing commitment to transparency around its environmental, social and governance performance.
• Partnering with the BD Foundation to commit an additional $7.8 million in monetary grants and product donations over the next three years to support the continued expansion of the BD Helping Build Healthy Communities initiative, which issues grants to community health centers that are implementing innovative, successful approaches to providing quality healthcare to underserved populations in the United States.
• Donating $1 million to support the launch of the world's largest non-governmental organization hospital ship, in recognition of BD's 25-year partnership with Mercy Ships.
• Being named to Fortune's Change the World list, marking BD's fourth time on the list. This year, BD was recognized for the company's rapid response helping to address the world's critical healthcare needs related to the novel coronavirus pandemic.

Fiscal 2021 Outlook for Full Year

The COVID-19 pandemic continues to impact the global economy and health care utilization trends. The company's fiscal 2021 outlook includes several assumptions, including no significant change in utilization or procedure volumes associated with COVID-19 resurgences. Management will discuss its outlook and several assumptions on its fourth quarter earnings call.

The company expects fiscal year 2021 revenues to grow high single to low double-digits on a percentage basis. This includes a contribution of approximately 100 basis points from foreign currency.

The company expects fiscal year 2021 adjusted diluted earnings per share to be between $12.40 and $12.60. This represents growth of approximately 21.5 to 23.5 percent over fiscal 2020 adjusted diluted earnings per share of $10.20, and includes a contribution of approximately 50 basis points from foreign currency.

Adjusted diluted earnings per share for fiscal 2021 excludes potential charges or gains that may be recorded during the fiscal year, such as, among other things, the non-cash amortization of intangible assets, acquisition-related charges, and certain tax matters. BD does not attempt to provide reconciliations of forward-looking non-GAAP earnings guidance to the comparable GAAP measure because the impact and timing of these potential charges or gains is inherently uncertain and difficult to predict and is unavailable without unreasonable efforts. In addition, the company believes such reconciliations would imply a degree of precision and certainty that could be confusing to investors. Such items could have a substantial impact on GAAP measures of BD's financial performance.

About BD

BD is one of the largest global medical technology companies in the world and is advancing the world of health by improving medical discovery, diagnostics and the delivery of care. The company supports the heroes on the frontlines of health care by developing innovative technology, services and solutions that help advance both clinical therapy for patients and clinical process for health care providers. BD and its 65,000 employees have a passion and commitment to help enhance the safety and efficiency of clinicians' care delivery process, enable laboratory scientists to accurately detect disease and advance researchers' capabilities to develop the next generation of diagnostics and therapeutics. BD has a presence in virtually every country and partners with organizations around the world to address some of the most challenging global health issues. By working in close collaboration with customers, BD can help enhance outcomes, lower costs, increase efficiencies, improve safety and expand access to health care. For more information on BD, please visit bd.com.