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Becton, Dickinson and Company Message Board

  • fourramsfans fourramsfans Dec 11, 2001 10:18 PM Flag

    Senior Management

    Now that "oldwillie" has made peace with his buddy, we can get to the business of saving "flatrock" 20k. The building of a new plant in Nebraska likely makes as much sense as that testament to bureacracy they built in Franklin Lakes. It is all about Senior Management arrogance. They don't ever pay the price. The shareholders pay by having this no growth dog stuck at the same price it was 4 years ago.

    Ask Kozy about the plant...he has been with BD forever. He will give you classic political "spin". Ask Cohen about no growth...you will get talk of futures...no execution. It took the new "bean counter" CEO a year to get his former boss off the Board. You know - the guy who has delivered nothing.

    Senior Management at BD will continue to punish the many good people who want to do it well. It is just that - Management - not Leadership. And they keep a Board who protects them. Can anyone honestly challenge that.

    Hey "flatrock" - $32 is no bargain. Better go elsewhere.

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    • If BD decides to replace EL at the top I would suggest they look outside. The internal candidates are all weak IMHO and the performance of the firm under their collective leadership has been disappointing.

      I would look seriously at a spin-out of BD Bioscience under Deb Neff when market conditions permit later this year, and a search for a new CEO to reinvigorate the medical device company that would remain. I would divest micro and be relatively price insensitive in so doing. I would consider other strategic options for BD Biosciences but not as a preference. I would also look seriously at developing strategic options for the medical device business as the rejuvenation of those businesses may not be forthcoming and its best role may be to provide positive cash flow to an enterprise in higher margin/growth businesses.

      Just IMHO. I actually doubt they will do anything.......

    • Following on from king800m and Know4not, this company does not seem to be as dynamic as its website. Is there fire in anyones belly at BD?
      My source tells me Gary Cohen could do the job?
      Would he make a difference?

    • I'm also an outsider. I own BDX as a value play. I'm beginning to question my decision.

    • Because of anti-trust problems I doubt that BDX will be acquired. However, if you carefully re-read Know4Not's comments it's clear that there eventually can be a happy ending here. That is through the spin-off of Biosciences and improvement in BDX's profit margins, particularly overseas, in my opinion. Given that happy scenario the Company will be able to buy back a significant amount of stock. All this depends on Ed Ludwig having the fire in his belly to shake things up and pursue shareholder value aggressively. I leave it to you insiders to assess the likelihood of that. As an outsider, I am skeptical.

    • Know4Not & King800m ,
      I too agree with the assessment. I read the current situation as untenable. Something has to change. Would either of you care to speculate on the future? Will BDX grow, be acquired or slowly fade into oblivion?

    • Thank you for an exceptionally perceptive and literate posting. Your comments summarize the situation exactly. Wall Street analysts should read it, although I think most of them do understand and agree with all the points you make. I hope Ed Ludwig reads it.

    • interesting Board. Some points of view - colored by experience within the firm:

      1. BD is not in biotech as it is generally used (as a synonym for biotherapeutics or biopharma). BD Biosciences is a portfolio of companies serving the research tools market in the biotech and pharma industries. I don't think they have split up what used to be BDIS into clinical and research Divisions so BD Biosciences also has an IVD component. This is either a distraction or a logical extension of the business (some research tools end up in clinical labs, c.f. HIV viral load testing and immunophenotyping) depending on your point of view.

      2. BD Biosciences has little fit to BD. Episodic unsuccessful attempts have been made to spin it out as an independent entity. There are sound business arguments to support this, I think. The reason it hasn't happened is that BD Biosciences contributes disproportionately to revenue growth and BDX without BD Biosciences may be a dead stock (OK....deader stock).

      3. BDX generates operating cash flow from its old core Divisions. These businesses own dominant market share in product actegories within the general heading of sterile disposeable medical devices. They are not growth businesses in the main, but can generate growth if BD innovates its product lines (c.f. the safety products). BD has not been successful (mostly) in using this cash flow to fund its entry or growth into higher margin, more attractive businesses. This is a management failure - but has been for several generations of management teams.

      4. BD management is insular and highly inbred. There is something to be said for the poster that suggested that BDX management was unaccaountable - largely true. Look how long folks like Walt Miller and Clateo (who is a great guy, but still...) were allowed to stay in their posts! On the other hand BD has a problem in attracting top management talent - it's not perceived to be a firm with high potential.

      5. The micro group is a disaster.....they always were. At one point BD dominated growth based micro (instrumentation, disposeables, growth media). Then through slipshod management and lack of vision they let Ortho leapfrog them and take most of their share. While this happened tens of millions were poured into a disastrous attempt to penetrate the high end immunoassay business (anyone remember the Affinity?).

      6. BD's molecular platform is a joke... always was. Doubt they can even sell it at this point. Another classic waste of money.

      BD is good company, generally poorly run. It has a limited future unless it can reinvent itself. BD Biosciences should be spun out when the public equity markets allow it. Just IMHO.

    • The truth hurts.....

    • There seems to be a lack of connection with Franklin Lakes and the rest of the company. It's hard to follow a person like that into battle.

    • realbdworker

      Thanks for the clarification. Your explanation rings true with me.

      Whats the feeling within BD at the moment?
      Is the CEO/President and new Chairman of the Board making a difference or is he just tightening the screws?

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