BD Partners with U.S. Government on $70 Million Manufacturing Infrastructure Project for Mass Vaccination Campaigns

Rhea-AI Summary

On July 8, 2020, BD (NYSE: BDX) announced a strategic partnership with the Biomedical Advanced Research and Development Authority (BARDA) to enhance manufacturing capabilities for injection devices. This collaboration involves a $70 million capital project, with BARDA investing $42 million. The new manufacturing lines will provide priority access to hundreds of millions of syringes and needles for pandemic vaccination efforts. BD has also secured an initial order for 50 million syringes and needles to support COVID-19 vaccination by December 2020, ensuring existing customer needs continue to be met.

Positive

• Strategic partnership with BARDA to boost manufacturing capacity.
• BARDA's $42 million investment in BD's $70 million project enhances U.S. pandemic response.
• Initial order for 50 million needles and syringes to support COVID-19 vaccination by December 2020.

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• None.

FRANKLIN LAKES, N.J., July 8, 2020 /PRNewswire/ -- BD (Becton, Dickinson and Company) (NYSE: BDX), a leading global medical technology company, today announced the formation of a strategic, public-private partnership with the Biomedical Advanced Research and Development Authority (BARDA), part of the U.S. Health and Human Services Office of the Assistant Secretary for Preparedness and Response, to develop new manufacturing lines for injection devices that will provide priority access to the U.S. government for hundreds of millions of syringes and needles to support current and future pandemic vaccination efforts.

As part of the partnership, BARDA will invest an estimated $42 million into a $70 million capital project to further expand BD's operations and manufacturing capacity in Nebraska, where the company has manufactured medical devices for nearly 70 years. The new capacity is expected to be online within 12 months and once completed, BARDA will have priority access to injection devices from these new manufacturing lines to support mass vaccination efforts for COVID-19 and future pandemics.

In addition, BD also finalized an initial pandemic order for 50 million needles and syringes to be delivered by the end of December 2020 to support the U.S. vaccination effort for COVID-19. This order will be fulfilled through BD's current manufacturing capacity, and the company continues to work closely with the U.S. government to finalize additional near-term quantities of injection devices that will be needed to fulfill the promise of the Operation Warp Speed vaccine program.

"BD's commitment to produce 50 million vaccine injection devices by the end of this year to support the U.S. COVID-19 vaccination campaign is the latest effort in the company's multifaceted global response to this virus, and the new, strategic public-private partnership will help ensure the U.S. is prepared for future pandemic vaccination efforts," said Rick Byrd, president of Medication Delivery Solutions for BD. "Over the past four years, BD has committed to invest more than $340 million in our Nebraska facilities. We are extremely proud of our talented and dedicated workforce in Nebraska and our longstanding partnership with the state, and we look forward to building on our strong presence and track record in Nebraska as we move forward."

Importantly, based on BD's manufacturing capability, the company does not expect this initial order or future quantities will impact BD's ability to fulfill existing customer requirements for needles and syringes, including the annual flu vaccination and childhood immunization campaigns. In addition, the Defense Production Act designation on the initial order enables BD to seek priority access to raw materials for manufacturing, and the company also expects enhanced logistics support from the U.S. government to ensure rapid transport and distribution of devices.

BD is the largest manufacturer of injection devices in the world, producing billions of syringes and needles annually through its global manufacturing network. In addition to the United States, BD has received pandemic orders from other countries, including Canada and the United Kingdom.

In addition to ramping up manufacturing of needles and syringes, BD has been working closely with the White House Coronavirus Task Force, the U.S. Department of Health and Human Services (HHS) and other federal agencies to expand access to diagnostic testing and support treatment of COVID-19 patients. Through June, the company has supplied health care providers globally with approximately 48 million swabs for flu and COVID-19 testing, more than 2.85 million COVID-19 rapid molecular diagnostic tests on the BD MAX™ System and millions of products used in the treatment of COVID-19 patients, including infusion pumps, infusion sets and catheters. BD Biosciences instruments are also being used by researchers around the world to better understand the human immune response to COVID-19.

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 65,000 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.

Forward Looking Statements
This press release contains certain forward-looking statements regarding BD's relationship with BARDA and the Operation Warp Speed vaccine program. Forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those expressed or implied in such statements, many of which are beyond the company's control, including the extent and timing of any future orders under the vaccine program. BD expressly disclaims any undertaking to update any such statements set forth herein to reflect events or circumstances after the date hereof, except as required by applicable laws or regulations.

Contacts:
Troy Kirkpatrick	Monique N. Dolecki
BD Corporate Communication	BD Investor Relations
858.617.2361	201.847.5378
troy.kirkpatrick@bd.com	Monique_Dolecki@bd.com

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SOURCE BD (Becton, Dickinson and Company)

FAQ

What is the purpose of BD's partnership with BARDA?

BD's partnership with BARDA aims to develop manufacturing lines for syringes and needles, ensuring priority access for U.S. pandemic vaccination efforts.

How much is BARDA investing in BD's manufacturing project?

BARDA is investing $42 million in BD's $70 million capital project to expand manufacturing capabilities.

What order has BD secured for COVID-19 vaccination supplies?

BD has finalized an initial pandemic order for 50 million needles and syringes to be delivered by the end of December 2020.

When will the new BD manufacturing capacity be online?

The new manufacturing capacity is expected to be operational within 12 months.

How does BD's manufacturing expansion affect existing customers?

BD does not expect the initial order or future quantities to impact its ability to fulfill existing customer requirements for needles and syringes.