bd medical segment

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BD Medical Segment

Tom Polen EVP and President, BD Medical Segment

Transforming to deliver higher impact solutions


BD MEDICAL IS TRANSFORMING TO HIGHER IMPACT SOLUTIONS AND GROWTH.


Significant progress executing our Medical strategy over the last five years

Five years

ago our

journey

began

Factors BD response

Global diabetes challenging

• Accelerate first-to-market innovation: differentiate pen needles and enter insulin infusion

• Continue opportunity sensing

Cancer therapies expanding rapidly

• Acquire Carmel Pharma • Accelerate market development

in U.S., Europe and Japan

Chronic disease proliferating globally

• Focused platform initiative including autoinjectors and other new products

• Big Pharma partner model

Medical


BD Medical is $7.8B in sales and is the leader in each of four businesses

Key strategic areas FY 2016 revenues

Leadership position

FY 2019 Segment size

Market growth

MP

S • PIVC1

• Hypodermic • Flush • Skin antisepsis • IV connectors / sets

$3.4B #1 $15.5B 3% to 4%

MM

S

• Infusion • Dispensing • Retail2

$2.2B #1 $9.0B 3% to 4%

DC

• Core injection • Insulin infusion $1.0B #1 $2.5B 4% to 5%

PS

• Prefilled (PFS) • Safety • SAIS3

$1.2B #1 $2.6B 4% to 5%

1. PIVC: Peripheral intravenous catheter 2. Retail market growth rate = ~10% 3. Self administered injection systems (SAIS ) market growth rate = ~15%


Changes

in

payer models

Catalyzing change for our customers

Decentralization of care

Digital health and smart devices

Holistic disease management

Process management

Driving an

increased

focus on

outcomes

Healthcare is being actively reshaped



Driving an

increased

focus on

outcomes

I need to think about getting better processes, not just better products.

“

” - Nurse

Changes

in

payer models


Driving an

increased

focus on

outcomes



My outpatient volumes are growing 3x more than inpatient.

“

” - Doctor

Changes

in

payer models


Driving an

increased

focus on

outcomes



Managing my disease can be easier using digital technology.

“

” - Patient

Changes

in

payer models


Driving an

increased

focus on

outcomes



We’re changing payment systems to reimburse wellness, not just sickness.

“

” - Payer

Changes

in

payer models


Driving an

increased

focus on

outcomes


And BD is transforming the Medical Segment to deliver solutions for these opportunities

++ Care continuum

++ Disease management

++ Digital health

• Solutions provider

• New capability builds Less complex med devices

• Sales: $4.5B

+ Med mgmt

+ Patient safety

+ Informatics

• Sales: $7.8B

• Refine the portfolio in

areas to win

Served

m

arkets

$30B $14B


Our journey ahead is focused on four strategic pillars

Expand

globally

Advance the

treatment of

diabetes and

other chronic

diseases

Prevent

infections and

improve safety

for healthcare

workers

Re-invent the

medication

management

process across

the care

continuum

1 2 3 4


FY 2017 FY 2018 FY 2019*

New product pipeline will continue to fuel our growth

BD Libertas™

wearable injector T2 Patch

wearable injector

Smart pen needles BD Neopak™ line extensions

BD Hylok™ BD Intevia™ next-gen (AI)

BD FlowSmart™

Next-gen ChloraPrep™ BD Cathena™ ChloraShield™

catheter dressings

Hazardous drug detection

New markets infection

prevention Next-gen

BD PhaSeal™

BD Intelliport™

Pyxis™ Mini Rowa™ Dose Pharmogistics™ Integrated BD Cato™

Smart CUBIE

Med View Dashboard

U.S. Retail

Vmax / CMax

Pyxis™ ES Enhancements

BD UltraSafe Plus™ line extensions

*

Med

managem

ent

Infe

ction

pre

vention a

nd

HW

S

Chro

nic

dis

ease


Re-inventing medication management across the care continuum

3X growth of outpatient vs inpatient volumes

$600K in annual waste per hospital

direct medical costs incurred due to medication errors


Medication Management Solutions Reinventing medication management across the care continuum

Ranjeet Banerjee

WW President, Medication Management Solutions

Tom Utech

VP, Solution Management and Marketing, Medication Management Solutions


OUR STRATEGY TO REINVENT MEDICATION MANAGEMENT ACROSS THE CONTINUUM WILL CREATE SUBSTANTIAL VALUE FOR OUR CUSTOMERS.


medication errors each

year

Medication errors are a substantial cause of death, source of misuse and costly burden Medical errors are the third leading cause of death Medication errors represent one-third of all medical errors

Impact on patients

U.S. patient injuries annually

direct medical costs in U.S. due

to medication errors

Impact on systems

average annual waste in large

hospitals


Current medication management trends present a significant opportunity

“It’s challenging to balance operational activities and increasing clinical needs.”

- Pharmacist

“I’m facing tighter cost, quality and regulatory pressures.”

- CFO

“I don’t have the patient information I need when I need it.”

- Nurse

Increasing acuity of patients and complex medication regimens

Tightening healthcare budgets and focus on decreasing costs and improving outcomes

Broadening continuum of care and discontinuity in information


Patient care Pharmacy Floor

Alaris™ Pharmogistics™ BD Cato™ Pyxis™

>500 Pharmogistics™ / BD Cato™ sites

>7,500 Pyxis™ customers globally

1.5M+ Alaris™ channels installed

Alaris™ interoperability ES Link

HIT connectivity engine

Hosted device data

BD is #1 in the acute segment and uniquely positioned to create value across the med management process


…provides foundation for new capabilities

The hosted environment not only collects end-to-end data within a facility, but across the enterprise

National benchmarking

Process improvements

Analytics

Device data collected across health systems…

3000+ U.S. acute hospitals

Hosted device data


Focusing on three strategies to drive growth and reinvent medication management

$2B

$1B

Addressable opportunity

Advance our “best-in-category” product lead

Unlock new value through end-to-end informatics

Expand across the care continuum

Video to be inserted: 8252MMSEfficiencyAnalystVideoD17227.mov


Advancing our best-in-category products’ lead with an increased innovation cadence

Alaris™ next-gen connectivity

New informatics capabilities

Enterprise Smart CUBIE system

Integrated BD Cato™

End-to-end interoperability and

integrated workflows

Enterprise-wide secure transportation and

tracking

Enterprise Pharmogistics™

Enterprise-wide perpetual inventory

management

Next-gen platform

Leapfrog clinical safety, informatics and

interoperable platform

Bi-directional patient controlled analgesia

PCA interoperability

Next-gen controlled substance

Next-gen software and configurable

storage

Pyxis MedStation™ enhancement

Software and hardware

enhancements

Improved drug library and alarm features

Alaris™ clinical enhancements

Dis

pen

sin

g

In

fusio

n

BD Intelliport™

Informatics-enabled IV bolus injections

FY 2017 FY 2018


Information integration can eliminate gaps in the system, creating new value

5%–6% of pharmacy budgets

consumed by inventory waste

20% of meds stocked in cabinets have

not been accessed in 6 months

9% of preps made using “pull back”

check method contain errors 67% of IVs have one or more errors

Waste Cost

Safety Safety

X X X X

Inventory management

IV compounding

Automated dispensing

cabinet

Infusion pump

Video to be inserted 8253MMSShortEditR3h264p.mov


Integrating BD products and processes to unlock new value through end-to-end informatics

Hosted device data

✓ ✓ ✓ ✓

Workflow interoperability

National benchmarking

Optimization analytics

Within a single facility System-level optimization Across peer health systems

Informatics capabilities

FY 2017 FY 2018


Building on our leadership in acute care, we are expanding our presence across the care continuum…

MMS cloud

Pyxis™ Mini

Non-acute medication

management

High-volume patient dose packaging

ROWA™ dose Ambulatory infusion

Explore growing segment

Simplifies non-acute product deployment

ES enterprise server

ES deployment enterprise-wide T

EC

H

Devic

es

FY 2018+ FY 2017

…creating opportunities to serve these expanding markets

Patients are increasingly seeking care outside of the hospital…


…including transforming the retail pharmacy

Inventory waste

Long wait times

Efficient inventory management

Increased access

Patient purchase confusion

Improved patient experience

Today Future

Vmax

Vmotion

Vis-a-via


BD is #1 in the retail segment and will expand our portfolio to pursue new opportunities

Our development plan expands the addressable market by 2 times

2016

2017

2021+

ROWA™ Vmax 210 Core market Higher storage capacity

ROWA™ Cmax Geographic expansion to China Channel system for rapid dispensing

>6,000 EU Vmax / Vmotion customers installed

Region-specific transformation and new market entry

2018

After-hours prescription pickup

Vis-a-via


OUR STRATEGY TO REINVENT MEDICATION MANAGEMENT ACROSS THE CONTINUUM WILL CREATE SUBSTANTIAL VALUE FOR OUR CUSTOMERS.


IN ADVANCING SAFETY FOR PATIENTS AND HEALTHCARE WORKERS THROUGHOUT THE WORLD.


Safety and healthcare-associated infections continue to be substantial issues

U.S. cost of healthcare-associated infections

Accidental needlesticks remain a significant issue

1 in 15 patients acquire infection during care


Continuing our global momentum in creating a safer environment for healthcare workers

54% E.U.

84% U.S.

19% China

emerging markets <11%

BD is continuing our drive to conversions, with focus on E.U. and emerging markets

Leveraging BD DS capabilities to advance the market into hazardous drug safety

Current segment size = $200M growing >10%

(16% penetration)

Segment potential = $1.3B

Safety IV catheter and syringe global penetration

BD PhaSeal™

Hazardous drug detection (FY18)

Total global conversion to safety is 34% today

Expanding our hazardous drug safety portfolio


Patient safety and infection prevention has become a core franchise for BD globally

Clinical area

Revenue

Served segments

Scope

Legacy BD Legacy CFN

Primarily vascular IP

Primarily surgical IP

~$500M ~$450M

$800M $1.0B

Global

~$950M

$1.8B

Past Today

Patient safety and infection prevention leader

Primarily U.S.

New BD

Global

Chloraprep video


U.S.

Sustain

67%

E.U.

Expand

10%

China

Develop

0%

ROW

Develop

4%

Innovation and market expansion Registration and market development

ChloraPrep™ penetration

ChloraPrep™ growth strategy

Surgical ChloraPrep™ example

2% 3.5% 4.7% 5.6% Surgical site infection rates

Attacking a global problem through market development and expansion


Investing in innovation across the patient safety and infection prevention landscape

Development plan

+ ~1 new launch / year

2016

2017

2021+

ChloraPrep™, BD PosiFlush™, MaxPlus™,

Integrated catheters

ChloraShield™ catheter dressings

Expanding addressable

market by 3x by 2021


BD IS ENABLING SAFER AND MORE CONVENIENT DELIVERY OF BIOLOGICS.


BD is advancing the treatment of chronic disease through partnerships with pharma

Strengthening our leading position while…

…creating new growth vectors in SAIS

PFS biologics delivered using a BD device today

4 out of 5

BD Intevia™ next-gen (AI)

BD Vystra™

variable dose pen

BD Physioject™ autoinjector (AI)

Today Rheumatoid arthritis, MS

FY18 High- viscosity drugs

FY19 Long-duration viscous biologics

BD Libertas™ wearable injector

FY16 Diabetes, fertility, growth

Portfolio

BD Hylok™ BD Sterifill Advance™ BD Neopak™

Line extensions (XSi™, Durashield™)

FY17–18 FY18 FY17–18

share 10% segment $700M

>15% growth

BD UltraSafe Plus™

Line extensions FY17-FY18


And investing to directly improve the lives of patients with diabetes

direct medical costs from diabetes worldwide

>60% diabetics using insulin without glycemic control

~415M patients with diabetes worldwide in 2015

Diabetes Care Simplifying diabetes management

Ken Miller

Worldwide President BD Medical-Diabetes Care


WE ARE UNIQUELY POSITIONED TO DELIVER

THE DIABETES SOLUTIONS FOR TOMORROW

Leveraging our strengths to deliver transformative innovation and growth

Commitment to diabetes innovations and data generation

Scale and reach in over 80 countries

Consistent first-in-class portfolio innovations

Build upon leadership in retail channel

Expanding served markets by 2x by 2021

Injection

2016

Launch BD FlowSmart™

2017

2021+

Diabetes is a global epidemic

A person with diabetes dies every 7 seconds

Today’s impact 2040 impact

Deliver solutions of tomorrow

Deliver transformative solutions 3

Expand drug delivery portfolio 2

Lead in injection 1


History of firsts has revolutionized drug delivery

Pati

en

ts s

erved

1924 to today

Lead in injection


By delivering patient-centered solutions through a cadence of innovation

comfort

safety

simplicity

affordability

New product launch every year for next five years

We will continue our commitment to innovating in injection


Satisfying significant unmet needs with BD FlowSmart™ technology Expand drug delivery portfolio

Full-scale global launch begins Q2 FY 17

77%

decrease in flow interruptions

• Developed in partnership with JDRF and The Helmsley Charitable Trust

• Commercializing in partnership with Medtronic

• Limited launch underway

Our leadership position enables delivery of transformative innovations

We touch

million patients

Our commitment Our scale and reach Our innovations

… by building upon

Patient Video

The burden is REAL

TRANSFORMING DIABETES CARE

From drug delivery devices to leadership in interconnected

diabetes management solutions

BD uniquely positioned to deliver transformative solutions

million patients

To serve … addressing unmet needs

Embarrassment Complexity Confusion >60%

Patients are not in glucose control


An elegant solution to simplify the lives of type 2 patients

Emerging billion-dollar product category

Deliver transformative solutions

Intuitive design

Adjustable basal and bolus

Affordable pricing


An elegant solution to simplify the lives of Type 2 patients

54


Intuitive design






Intuitive design




56


56


Intuitive design


Affordable pricing





Intuitive design


Affordable pricing





An interconnected solution for a population of type 2 patients



• Irrefutable dose data enabled by wireless connectivity






• Dose data seamlessly combined with glucose, diet and activity data





• Dose data seamlessly combined with glucose, diet and activity data

• Generation of insights to improve care

• Benefits for patients, caregivers, HCPs, payers



Despite advances

interconnected diabetes management

remains out of reach for many


Making IDM accessible for all diabetes injectors with BD smart pen needle technology





• Designed to capture irrefutable dose data




• Wireless communication of dose data to integrate with other data





• Universal fit with all disposable insulin pens






• Affordable pricing

• Universal fit with all disposable insulin pens




Leverage BD scale, reach and capabilities to bring benefits of IDM to the world

TODAY

WITH BD TRANSFORMATIVE SOLUTIONS

We are uniquely positioned to deliver the solutions of tomorrow

Injection

Launch BD

FlowSmart™

Launch patch pump and smart pen

needle 2016

2017

2018

2021+ Lead in injection 1

Expand drug delivery portfolio 2

Deliver transformative solutions 3

Products solutions

Expanding served markets

by 2x


WE ARE UNIQUELY POSITIONED TO DELIVER

THE DIABETES SOLUTIONS FOR TOMORROW


Increased relevance of informatics to focus on customer outcomes and connectivity

Current portfolio Building new capabilities

Technology solutions

New digital health BU

Core BU

• Interoperability

• Smart devices

• Digital health offerings

Future portfolio

Pharmogistics™ BD Cato™

MedMined™ Interoperability

$200M+ in revenue >450 employees in technology solutions


Drive market development and adoption

Develop markets

• Near-term: Focus on adoption

• Mid- / long-term: Drive market development

Register and customize

142*

Register existing products internationally

Target ~200

Local customization

IV sets

Rowa™ Cmax

Examples:

*Registered or in process through Q42016

Existing products to new markets through

Q3 2017

Revenue synergies will bring combined BD Medical + CFN towards 5% top line growth


And BD is transforming the Medical Segment to deliver solutions for these opportunities

++ Care continuum

++ Disease management

++ Digital health

• Solutions provider

• New capability builds Less complex med devices

• Sales: $4.5B

+ Med mgmt

+ Patient safety

+ Informatics

• Sales: $7.8B

• Refine the portfolio in

areas to win

Served

m

arkets

$30B $14B


BD MEDICAL IS TRANSFORMING TO HIGHER IMPACT SOLUTIONS AND GROWTH.

bd medical segment

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