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Partner Interview
Published December 9, 2024

Becton Dickinson: Leadership Style & Organic Growth

Executive Bio

Former Senior Executive at Becton Dickinson

Interview Transcript

Disclaimer: This interview is for informational purposes only and should not be relied upon as a basis for investment decisions. In Practise is an independent publisher and all opinions expressed by guests are solely their own opinions and do not reflect the opinion of In Practise.

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But if you're saying the potential risk of pushing the company too hard would be underinvesting in organic development, which I wanted to ask about later as well, then it's not only about guiding and expecting numbers but also about capital allocation towards acquisitions.

Yes, definitely. He's been pushing the company hard, and when you look at the growth of R&D, it has been modest in the last few years. In the years 2022, 2023, and 2024, you could argue that to make up for inflation, he controlled the R&D spending very tightly. The question I have is, as the company's portfolio moves into higher growth spaces and more Class III devices, part of that includes Bard, the peripheral intervention, and the Edwards APM business. These businesses typically require higher R&D spending than the company's average.

This is a snippet of the transcript.to get full access.

But if you're saying the potential risk of pushing the company too hard would be underinvesting in organic development, which I wanted to ask about later as well, then it's not only about guiding and expecting numbers but also about capital allocation towards acquisitions.

I think we should gradually see a slight increase in R&D expenses to support organic growth. In my mind, that would be the wise thing to do if you don't squeeze the company too much. That's the piece there.

This is a snippet of the transcript.to get full access.

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