Both acquisitions were transformational for Becton Dickinson, both in terms of their size and the new product categories they introduced to the company, which it hadn't been exposed to before. From a top-down perspective, how well did the company manage both integrations, considering both the operational side and the cultural aspects? If there was any integration needed between those organizations, what would be your take? You can address them one at a time.

CareFusion was a manufacturing company, so there were benefits from cost reductions and plant consolidations. The manufacturing synergies continued to provide value. The commercial integration was satisfactory, enhancing BD's presence in US hospitals' C-suites through Alaris and Pyxis. It also brought capabilities in software development, informatics, and robotics, which later evolved into AI. However, the commercial integration was slightly disappointing. CareFusion was very US-centric, selling mainly in Anglo-Saxon countries, particularly with the Alaris pump franchise.

Both acquisitions were transformational for Becton Dickinson, both in terms of their size and the new product categories they introduced to the company, which it hadn't been exposed to before. From a top-down perspective, how well did the company manage both integrations, considering both the operational side and the cultural aspects? If there was any integration needed between those organizations, what would be your take? You can address them one at a time.

In hindsight, the biggest mistake in the CareFusion integration was the mismanagement of FDA warning letters and relationships. This was a known issue at the time of acquisition but was poorly managed, leading to problems that surfaced in 2020. It took until 2023 to resolve these issues. Tom Polen, who led the medical segment, was aware of these challenges. The company mismanaged the regulatory and R&D aspects of the FDA relationship, costing over $400 million in revenue for several years and increasing remediation costs significantly between 2020 and 2023. The company had to allocate substantial resources to address these issues.