Becton, Dickinson and Company (BDX)
BD Simplist Product Line Launch Conference
March 28, 2013 8:00 am ET
Vincent A. Forlenza - Chairman, Chief Executive Officer and President
Suketu Upadhyay - Acting Chief Financial Officer, Principal Accounting Officer, Senior Vice President and Controller
David H. Roman - Goldman Sachs Group Inc., Research Division
Frederick A. Wise - Stifel, Nicolaus & Co., Inc., Research Division
Amit Bhalla - Citigroup Inc, Research Division
Jonathan P. Groberg - Macquarie Research
S. Brandon Couillard - Jefferies & Company, Inc., Research Division
Kristen M. Stewart - Deutsche Bank AG, Research Division
Matthew Taylor - Barclays Capital, Research Division
William R. Quirk - Piper Jaffray Companies, Research Division
Jeffrey Frelick - Canaccord Genuity, Research Division
Robert M. Goldman - CL King & Associates, Inc., Research Division
Richard Newitter - Leerink Swann LLC, Research Division
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Beginning today's call is Ms. Monique Dolecki. Ms. Dolecki, you may begin.
Thank you, Jackie. Good morning, everyone, and thank you for joining us today. We are hosting this conference call to introduce our new BD Simplist product line. As we referenced in our press release, we are presenting a set of slides to accompany our remarks on this call. The presentation is posted on the Investor Relations page of our website at bd.com.
During today's call, we will make forward-looking statements, and it is actual -- it is possible that actual results could differ from our expectations. Factors that could cause such differences appear in our first fiscal quarter press release and in the MD&A sections of our recent SEC filings.
Leading the call this morning is Vince Forlenza, Chairman, Chief Executive Officer and President. Also joining us are Suky Upadhyay, senior -- Chief Financial Officer, Senior Vice President and Controller; Bill Kozy, Executive Vice President and Chief Operating Officer; Gary Cohen, Executive Vice President; and Mark Sebree, President of BD Rx.
It is now my pleasure to turn the call over to Vince.
Vincent A. Forlenza
Thank you, Monique, and good morning to everyone. It's great that you're able to join us today. Similar to our quarterly conference calls, we'll walk you through several slides and then open up the call for Q&A.
As we stated in our press release yesterday, we're very pleased to announce our BD Simplist line of generic injectable drugs available in ready-to-administer glass prefilled syringes. This marks BD's entry into pharmaceutical manufacturing, which is complementary to our long-standing presence in injection and infusion-based drug delivery. As many of you already know, we're a global leader in this area. This opportunity is highly aligned with our broader strategy of enabling safer, simpler and more effective parenteral drug delivery.
We continue to make progress delivering against that strategy and believe that the BD Simplist product line is the next improvement to reduce the spread of infection and simplify drug delivery. During our Analyst Day, we shared with you some new exciting opportunities that we have in our pipeline. However, this is an area that we have not discussed with investors in the past. We would like to take this opportunity to provide you with the framework on how we are thinking about this product line going forward.
Over the past several years, BD has made a significant investment in drug device R&D in Pont-de-Claix, France, in our pilot manufacturing facility. We have also completed the state-of-the-art manufacturing facility in Wilson, North Carolina, as you can see on Slide 5. Our injectable drugs will be formulated, produced and packaged at this North Carolina facility. We believe this is a logical extension of BD's filling capability and manufacturing capabilities. We have demonstrated this expertise with our efficient prefillable syringe manufacturing capabilities in our Pharmaceutical Systems business, along with our filling expertise in the prefilled IV flush products within Medical Surgical Systems. We're pooling these together and taking the next step into manufacturing our own line of generic prefilled injectable drugs.
BD Simplist is a logical outgrowth of existing core competencies, combined with a new competency for BD: drug formulation. We believe the resulting product line is competitive in the marketplace and [indiscernible] efficient U.S. health care system. BD Simplist prefilled injectables will be manufactured and commercialized by BD Rx Inc., a wholly-owned subsidiary of BD. We will continue to invest in this area to develop a broad line of products to serve our hospital customers.
Moving on to Slide 6. I'd like to review the ways in which BD Simplist addresses unmet needs. Currently, health care professionals need help improving medication delivery and also need to have a trusted, reliable source for an inventory of the most commonly used injectable medications. With the traditional vial and syringe drug prepping process, health care professionals often find the injection process to be inefficient, with too many time-consuming steps. There's also the potential to have unlabeled or mislabeled syringes that are [indiscernible] have an increased risk of contamination. All of these challenges increase the potential risk for medication errors.
With this new product line, we're aiming to notably improve clinical practice and envisioning improved patient care and more efficient clinical applications. BD Simplist prefilled injectables will help improve patient care by enabling clinicians to efficiently and safely provide patients with what they need, reducing the potential risk of human error and providing commonly used medications from a trusted source. We're well positioned [ph] to take this next step based on our manufacturing capability, the high quality of our products and our history of reliable delivery to our customers.