MII INVESTMENT MEMO

TO: FROM: SUBJECT: DATE:

McIntire Investment Institute Michael Nugent, COMM 2010 Election Memo – BDX December 1, 2008

Becton, Dickinson and Company
Sector: Healthcare | Industry: Medical Equipment and Supplies | NYSE: BDX

Thesis: A global leader in medical devices, Becton, Dickinson and Company presents a long-term investment opportunity for the McIntire Investment Institute because of the resilience of the firm’s sales in economic downturns, the solid performance of the company driven by innovation, the boon that healthcare reform in the United States should provide, and strategic acquisitions.

I. Financial Summary

Share Price 11/28/08 Shares Outstanding Market Cap LT Debt P/E (forward) 52 Week Range Float Short Interest Avg Daily Volume (3m) Beta

$63.53 243.57 million $15.47 billion $955.7 million 11.74 $58.14 - $93.24 241.22 million 1.12 million 1,963,240 0.73

II. Business Overview Becton, Dickinson and Company (BD) manufactures and sells a host of medical devices, diagnostic equipment, and cell analysis products to healthcare institutions, clinical laboratories, and private consumers. Incorporated in New Jersey in 1906, the company is divided into the BD Medical, BD Diagnostic, and BD Bioscience product segments. BD Medical comprises the majority of the firm’s revenues and includes Medical Surgical Systems, Diabetes Care, Ophthalmic Systems, and Pharmaceutical Systems. As the secondary sales-generating division of the company, BD Diagnostic is comprised of the Diagnostic and Preanalytical Systems divisions. Supplying life science research labs with tools for cellular anaylsis, BD Bioscience is the smallest revenue contributor. Becton,

Dickinson and Company employs around 28,000 people in 50 countries and derives 55% of its revenues from countries other than the US. BD Medical The leading segment in terms of sales