Becton Dickinson aims for 10 percent growth

By Susan Kelly

NEW YORK (Reuters) - The chief executive of Becton Dickinson and Co. (BDX.N: Quote, Profile, Research, Stock Buzz) on Monday said the medical equipment maker could accelerate revenue growth into double-digits if two recent acquisitions with emerging technologies gained momentum.

Becton Dickinson is in the process of buying TriPath Imaging Inc. TPTH.O, a maker of products to detect and treat cancer, for about $350 million and in February bought molecular testing company GeneOhm Sciences Inc. for $230 million.

"If these two acquisitions really take off, I could see us getting to 10 percent five years out," Edward Ludwig, Becton's chairman and chief executive, said at the Reuters Health Summit in New York.

The Franklin Lakes, New Jersey-based company, which makes medical supplies including needles and syringes, last week reported 2006 revenue growth of 8 percent and forecast another year of 8 percent growth in 2007, excluding its blood glucose monitoring business, which the company is exiting.

Becton Dickinson, whose diabetes products include insulin syringes, pen needles and lancets, announced in September it would stop selling its money-losing glucose monitors after four years, citing pricing pressure.

But the company remains focused on developing advances in diabetes care, including a continuous glucose sensing technology now in preclinical research whose aim is faster, more accurate management of blood sugar fluctuations, Ludwig said.

Becton Dickinson could partner with a hospital products company to incorporate the technology in patient monitoring systems or with a maker of insulin pumps for individual use, Ludwig said.

The company also sees potential to work with producers of inhaled insulin treatments on advanced delivery mechanisms in three to five years, Ludwig said.

In molecular diagnostic testing, the company's rapid screening tests for staph and other deadly bacterial infections that are spread in hospitals could be a $500 million business in five to 10 years, Ludwig said.

Becton Dickinson's recent deals have been in the diagnostics arena, but the company is also looking for expansion opportunities in its medical products and biosciences businesses, the CEO said.

Despite plans to boost research and development spending by 12 percent to 14 percent next year, another deal in the $200 million to $300 million range is possible in any one of the company's three business segments, Ludwig said.

"We could do another deal next year and not have it hurt our cash flow," he said.

Shares of Becton Dickinson, which are trading near their highest levels in more than a decade, closed Monday up $1.89, or 2.68 percent, at $72.41.