BD’s Business Split: A Game-Changer for IVD Market

Becton Dickinson’s (BD) decision to separate its biosciences and diagnostic solutions businesses is sending ripples through the in-vitro diagnostic (IVD) sector. BD says the separation was the result of a comprehensive business portfolio evaluation launched in early 2024. The company says the separation is expected to unlock value on two fronts: Creation of a new BD that is recognized as a focused, innovative, and growth-oriented medical technology leader with four attractive segments aligned to both essential needs and higher-growth trends in healthcare, and the Biosciences and Diagnostic Solutions business that it expects to become a differentiated leader in life sciences tools and diagnostics. But, the move, which affects BD’s research instruments, reagents, and infectious disease diagnostics segments — generating over $3 billion in revenue in fiscal 2024 — raises a crucial question: Could this strategic shift reshape market competition for IVDs?

According to GlobalData, BD’s influence in the IVD space is significant. The company holds nearly 20 percent of the sexual health test market. With Hologic dominating this sector, BD’s restructuring presents a rare opening for competitors. It would be possible for a rival IVD player step up to challenge Hologic’s dominance. Or perhaps Hologic itself could seize the opportunity to further solidify its control.

GlobalData medical analyst Amy Paterson notes that BD’s intent to split two segments off from their company provides other companies in the IVD space with a unique opportunity to strengthen their own product offerings. “A competitor could acquire BD’s diagnostic assets to gain a foothold in the sexual health market — or, conversely, Hologic could absorb BD’s segments to eliminate emerging threats before they gain momentum,” she says.

In addition, the respiratory disease test market is fragmented, with no single company commanding more than 50 percent of revenues. If an industry player were to invest in BD’s infectious disease diagnostics portfolio, it could rapidly scale up and consolidate market leadership.

Paterson underscores the broader implications as well. “IVD competitors who are at the top of their market could acquire these segments from BD to secure more of the market and keep competition down. Meanwhile, smaller players could use these segments to grow their market share and compete with the larger players.”

BD’s decision signals a moment of transformation for the IVD sector. Companies with stakes in sexual health and respiratory disease diagnostics should view this as a rare chance to expand. With BD’s established products up for grabs, the next industry leader could emerge from this shake-up — if they act swiftly.

Sherrie Trigg

Editor and Director of Medical Content