Becton Dickinson aims to grow by bringing new technologies into more places in healthcare. Pharmacies are now part of the program.The medical technology giant is Obtain Pharmacy automation company Parata Systems acquired for $1.525 billion.
Under terms announced Monday, BD is paying cash for Parata, which has commercialized a robotic system for sorting and packaging pills, automating many repetitive and manual tasks for pharmacists. Founded in 2001, the Durham, North Carolina-based company uses its technology as a way to free up pharmacists for other jobs, improve pharmacy efficiency and reduce prescription errors. According to BD, Parata’s revenue for the 12 months ended March 31 was about $220 million.
Parata is a portfolio company of investment firm Frazier Healthcare Partners, which in 2017 get TCGRx, a Wisconsin-based pharmacy packaging and automation company. the following year, TCGRx acquires Parata The combined company retains the Parata name and its headquarters in Durham. Financial terms of both deals were not disclosed.
BD is known for manufacturing and selling diabetes products.Earlier this year, it was completed Spin off the business into a separate public company, now called EmbectaBD has been pursuing its growth strategy, dubbed “BD 2025,” which focuses on adding technologies that are either part of connected care or enable care delivery in new settings such as the home. In addition to internal R&D, the medtech giant plans to make acquisitions to align its portfolio assets with its growth strategy.
“Parata has an attractive financial profile and a compelling value proposition that meets all of our stringent investment criteria for growth, profitability and returns,” BD Chairman, CEO and President Tom Polen said in a prepared good statement. “With the addition of Parata, BD furthers our 2025 growth strategy around smart, connected care and enabling new care environments.”
Parata’s acquisition is BD’s largest since 2017 acquisition of surgical products company CR Bard for $24 billionIn a research note to investors on Monday, William Blair analyst Brian Weinstein wrote that acquiring Parata gives BD access to the $600 million pharmacy automation market, which is facing staffing shortages, rising wages and pharmacists. is growing in the context of increased demand. He added that the deal is in line with his company’s expectations of what BD should do, and in line with its stated growth strategy for 2025. As part of BD, Parata’s products can outpace market growth through the larger company’s commercial footprint, global scale, and ability to innovate.
The transaction is still subject to regulatory clearance, but the companies expect to close in the first half of BD’s fiscal 2023, which is the end of March 2023.
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