BD Resolves Previously Disclosed SEC Investigation

Rhea-AI Summary

BD (BDX) has reached a settlement with the SEC regarding an investigation into previous disclosures about the BD Alaris™ System, acquired from CareFusion in 2015. The company will pay $175 million to resolve the matter, an amount already reserved and disclosed in their FY2024 Form 10-K. The settlement, which involves events from over four years ago, requires no financial restatements and won't affect BD's innovation investments or capital allocation strategy.

The company maintains that the BD Alaris™ System is safe and effective, noting its critical role in healthcare delivery, including during the COVID-19 pandemic. The system received FDA 510(k) clearance in July 2023. BD has implemented improvements to its operational and governance processes, affirming its commitment to ethical standards and product quality.

Positive

• Settlement resolves long-standing SEC investigation without admission of wrongdoing
• No impact on FY2025 guidance or capital allocation strategy
• No financial restatements required
• BD Alaris System received FDA 510(k) clearance in July 2023

Negative

• $175 million settlement payment to SEC
• Disclosure and reporting issues with BD Alaris System

FRANKLIN LAKES, N.J., Dec. 16, 2024 /PRNewswire/ -- BD (Becton, Dickinson and Company) (NYSE: BDX), a leading global medical technology company, today issued the following statement:

BD has reached an agreement with the U.S. Securities and Exchange Commission (SEC) to resolve the previously disclosed investigation related to prior public disclosures and SEC reporting regarding the BD Alaris™ System, which was acquired by BD from CareFusion in 2015 and is part of the BD Medication Management Solutions business.

The SEC Order, the findings of which BD neither admits nor denies, relate to matters concerning BD Alaris that occurred more than four years ago. As part of the settlement, BD has agreed to pay $175 million to the SEC, an amount that was reserved and disclosed in the company's fiscal year 2024 Form 10-K and was contemplated in BD's fiscal year 2025 cash flow plan. No financial restatements are required as a result of the settlement, and the settlement amount does not impact BD's investments in innovation or its previously disclosed capital allocation strategy. BD is not updating its fiscal 2025 guidance as a result of the settlement. The company believes that settling with the SEC is the right course of action to fully resolve this matter and move forward.

The BD Alaris™ System is safe and effective and is a critical part of health care in the United States. The system has been used for many years to safely deliver IV therapies to patients, including throughout the COVID-19 pandemic. The updated BD Alaris™ System received 510(k) clearance from the U.S. Food and Drug Administration in July 2023, and the company continues to update its Alaris fleet.

BD has implemented a number of improvements to its operational and governance processes and related disclosure practices. BD is committed to operating with integrity and the highest ethical standards to produce high-quality, safe and effective products and serve as a trusted partner for its customers and their patients.

About BD
BD is one of the largest global medical technology companies in the world and is advancing the world of health by improving medical discovery, diagnostics and the delivery of care. The company supports the heroes on the frontlines of health care by developing innovative technology, services and solutions that help advance both clinical therapy for patients and clinical process for health care providers. BD and its more than 70,000 employees have a passion and commitment to help enhance the safety and efficiency of clinicians' care delivery process, enable laboratory scientists to accurately detect disease and advance researchers' capabilities to develop the next generation of diagnostics and therapeutics. BD has a presence in virtually every country and partners with organizations around the world to address some of the most challenging global health issues. By working in close collaboration with customers, BD can help enhance outcomes, lower costs, increase efficiencies, improve safety and expand access to health care. For more information on BD, please visit bd.com or connect with us on LinkedIn at www.linkedin.com/company/bd1/, X (formerly Twitter) @BDandCo or Instagram @becton_dickinson. 

Contacts:
Media:	Investors:
Troy Kirkpatrick	Adam Reiffe
VP, Public Relations	Sr. Director, Investor Relations
858.617.2361	201.847.6927
troy.kirkpatrick@bd.com	adam.reiffe@bd.com

 

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SOURCE BD (Becton, Dickinson and Company)

FAQ

How much is BD (BDX) paying in the SEC settlement?

BD is paying $175 million to settle the SEC investigation, an amount that was already reserved and disclosed in the company's fiscal year 2024 Form 10-K.

Will the SEC settlement affect BD's (BDX) FY2025 guidance?

No, BD is not updating its fiscal 2025 guidance as a result of the settlement.

When did the BD Alaris System receive FDA clearance?

The updated BD Alaris System received 510(k) clearance from the FDA in July 2023.

Does the SEC settlement require BDX to restate its financials?

No, no financial restatements are required as a result of the settlement.

What was the focus of the SEC investigation into BD (BDX)?

The investigation focused on prior public disclosures and SEC reporting regarding the BD Alaris System, which BD acquired from CareFusion in 2015.