Introduction to BDDigital Health Interests & External InnovationJanuary 19, 2015

Noel Harvey, PhD, Vice President, Research & Development

Albert A Lauritano, MS, CLP. Director, Strategic Technology Partnerships

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Who is BD?

FORTUNE 500 company (#332)

Locations in more than 50 countries

Nearly 30,000 associates worldwide

Serves healthcare institutions, life science

researchers, clinical laboratories and the general

public

Sells a broad range of medical supplies and services,

devices, laboratory equipment and diagnostic

products

3.4B

(Other: 1.1B)

+ 4.5% ( 2 0 1 2 - 2 0 1 3 )

M E D I C A L

B I O S C I E N C E S

4.3B

2.6B

1.1B

D I A G N O S T I C S

Business Segment Business Region

BD – Global & Growing

BD Locations

Industrialized Markets

Emerging Markets

Latin America - 1952

• ~5,200 Associates

• 8 Countries, 5 Plants

U.S.A. - 1897

• ~12,000 Associates

• 29 Plants

•

Canada - 1951

• ~550 Associates

• 1 Plant

Asia Pacific - 1971

• ~4,600 Associates

• 16 Countries, 5 Plants

India - 1995

• ~550 Associates

China - 1994

• ~2,200 Associates

Europe - 1952

• ~6,000 Associates

• 21 Countries, 10 Plants

•

Japan - 1971

• ~600 Associates

• 1 Plant

•

EMA - 1994

•~ 250 Associates

• 10 Countries

*note: last updated April 2013

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BD: Purpose & Values

“Helping all people live healthy lives”

We treat each other with respect

We do what is right

We always seek to improve

We accept personal responsibility

BDX StrategyTechnology

Trends

Healthcare

Megatrends

BDT StrategyBDT Strategic

ImperativesIncreased Accountability

for OutcomesPersonalized

Medicine, Measureable

Therapies

Focus on Changing Macroenvironment

Focus on Technology Evolve to the BD

Innovation Centre

“Megatrends-to-Strategy” process

This is the way BDT applies technology to address specific, strategically BDX opportunities that health care trends present.

BD’s Strategic Approach

Reform and Data are Fundamentally

Changing Healthcare

Shifting profit pools and creating vast new

economically viable opportunities

Hospitals Highly Connected(HIMSS Stage 4+)

>55%35-70%Hospital Revenue from Value Based

Reimbursement by 202O

Available, Connected DataValue Based Reimbursement

Healthcare Reform is Aligning Incentives and Creating

Opportunities – Especially for Health IT & Informatics

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From To Feasible Opportunities

Pay for service & provider incentives to maximize revenue

Focus on what’s broken or inefficient (adherence, errors,ineffective treatments, overuse)

Pay for performance and efficiency

Individual components and products

total solutions, portfolios of products and services

Risk sharing service models, startups create key components

Solutions for patients and providers

Solutions for patients, providers and payers

Data aggregation and analytics (big-data), Population Health Management Solutions

Cost reduction and Incremental Innovation

Disruptive, innovations that solve major problems

Address biggest problems with new business models

Theoretically Equivalent “Non-Inferior” Products

Proven Superior Products (Clinically Proven)

Proven Superior Products (Clinically Proven)

Pure focus on clinical outcomes Focus on clinical and economicoutcomes

Drive healthcare delivery efficiency and optimize processes

Physician preference and custom Data driven, analytically proven, and standardized

Automation, analytics (CDSS), big data

Operating Rooms & Hospitals as primary Revenue Drivers

Operating Rooms & Hospitals as primary Cost Drivers

Technologies that keep patients out of the hospital and OR

Healthcare IT is Enabling Transformation

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Industry leaders must develop IT empowered healthcare solutions

Healthcare IT is key to delivering efficient clinical outcomes

Cloud

C

Healthcare is under pressure to drive outcomes with capped revenue

Leverage Data

Coordinating Care

Coordinate Systems

Connect Products

Analytics Monitoring Population Health

Historical absence of data has lead to operational inefficiencies

Healthcare IT is Revolutionizing Healthcare

…but BD continues to produce basic syringes, catheters and diagnostic tests?10

Tele-Medicine Remote Patient Monitoring

Big Data Population Health Management

Mobile Workflow and Care Coordination Solutions

Managing patient vital signs moreeffectively in the hospital and home

Changing the way weinteract with our caregivers

Driving better clinical outcomesand patient care

Using the power of data to manageour most challenging healthcare issues

Information-enabled Smart Devices

Managing and monitoring howwe adhere to our treatment

Smart Devices, Mobile & Big Data Will

Revolutionize Healthcare

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Tele-Medicine Remote Patient Monitoring

Big Data Population Health Management

Mobile Workflow and Care Coordination Solutions

Managing patient vital signs moreeffectively in the hospital and home

Changing the way weinteract with our caregivers

Driving better clinical outcomesand patient care

Using the power of data to manageour most challenging healthcare issues

Information-enabled Smart Devices

Managing and monitoring howwe adhere to our treatment

Informatics Will Change Healthcare & BD

• Healthcare is changing in fundamental ways,

creating fundamentally different opportunities…

• We must develop, implement and hone new skills

• Informatics is the key skill that will transform

healthcare

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Informatics will Transform BD …

Reliable Supplier of Quality,

Affordable Diagnostics

Reliable results

Economical testing

Trusted Clinical and Operational Partner• Real-time, connected, population

based diagnosis

• Drives care, improves outcomes and reduces costs

• Provides clinical & operational insights

From … To …

BD Cloud

Four Business Needs Driving Early Stage Innovation

Incent entrepreneurial community to consider and pursue

BD strategic interests

Learn about new areas, technologies, capabilities and

business models while maintaining flexibility

Develop comfort to acquire or invest in early stage

companies / technologies

Establish an adaptable mechanism for incubating new

businesses at critical stages

2014 goal was to develop deep understanding of

acceleration model

Develop thorough understanding of acceleration and

incubation process

Strengthen BD brand amongst entrepreneurs and VC

community

Build new networks to:

o Shape entrepreneurial community to consider and

pursue BD strategic interests

o Source inbound opportunities early in their maturity

o Establish access to a broader set of early startups

B D S T A R T U P

Fresh IdeasNo BaggageMove Fast

No Red Tape

Know the CustomerChannel Strength

Clinical/RegulatoryAdvocacy/Reimbursement

COMBINE THE BEST TALENT, CAPABILITIES & TECHNOLOGY FROM BD & START UPS TO SOLVE BIG

HEALTHCARE CHALLENGES

Accelerating external innovation

Innovating how we innovate

OCS Israel Office of the Scientist

Develop ecosystem of entrepreneurs in spaces of BD’s strategic focus

Co-create solutions for BD customers

Apply government R&D funding to external partnerships solving specific technology challenges

BD is leveraging the world’s best science, technology, capabilities together with entrepreneurs and OPM to address BD’s future technology needs

big data and smart devices to improve

healthcare outcomes

SLC & Boston programs

partnered w/ payors & providers

Strategic Technology Partnerships

Communicate & Brand ‘BD is open for business”

Identify & Evaluate New Technology, Capability and Business Model Opportunities

Acquire via New Partnership Models

Leverage External Funding, Capabilities & Infrastructure

Translate ‘learnings’ across BD & change culture

Learn by doing & Execute, Execute, Execute!

Funding Capability

AcquireIdentify

Promote

Translate

Execute!

Leverage!

BD Acceleration Model

• We partner with existing accelerators and select startups

for mentoring

• Every relationship has a BD Mentor/Alliance Manager

• Access to network of internal Subject Matter Experts

(regulatory, clinical, reimbursement, health economics,

manufacturing, quality)

• Access to global KOL network via Guidepoint Global

• For companies in BD’s OTHC areas of focus, funding via

grant or convertible possible

ATGTAG

I N F O R M AT I O N E N A B L E D D E V I C E SB I G D ATA A N A LY T I C S

G l o b a l H e a l t hM a t e r n a l & N e w b o r n

N E X T G E N E R AT I O NS E Q U E N C I N G

M i c r o f l u i d i c s & P O C D x

P a r e n t e r a l D e l i v e r y

So what’s interesting to BD?

A u t o m a t i o n & P r o c e s s I m p r o v e m e n t

S p e c i m e n C o l l e c t i o n & P r e s e r v a t i o n