Source: GlobalData
BD intent to separate business could allow competitors to rise in IVD test markets, says GlobalData
Posted in Medical Devices
Becton Dickinson (BD) has recently announced its intent to separate its biosciences and diagnostic solutions business. The biosciences segment includes research instruments and reagents, and single-cell multiomics, while the diagnostic solutions segment consists of microbiology and infectious disease diagnostics. According to the company, the two segments earned over $3 billion in revenue in fiscal 2024. BD’s move could allow competitors to rise in in-vitro diagnostic (IVD) test markets, says GlobalData, a leading data and analytics company.
According to GlobalData’s US Healthcare Facility Invoicing Database, BD has market-leading products in the IVD space, holding just under 20% of the sexual health tests market, with strong products BD ProbeTec and BD MAX, which will be part of the split from BD. With Hologic holding the majority of market share for sexual health tests, it will be interesting to see if BD’s segments can be grown in this market.
Amy Paterson, Medical Analyst at GlobalData, comments: “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. For example, in the sexual health tests market, an IVD competitor could acquire the BD segments to compete against Hologic. Alternatively, Hologic could use BD’s segments to strengthen its position in the market and ensure they face no competition.”
In the respiratory disease tests market, no company is making up more than 50% of the market revenue. By acquiring and strengthening the point-of-care infectious disease tests, for example, a company in this space could potentially gain enough market share to dominate the respiratory disease tests space.
Paterson continues: “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. As well, smaller players in the market could use these segments to grow their market share and compete with the larger players.”
Paterson concludes: “Companies with IVD products in the sexual health test and respiratory disease test spaces should look at BD’s announcement as an opportunity to strengthen their presence and should consider how BD’s established products could help strengthen their sales and grow their market share.”