Analyst: CareFusion Corp. Deal May Have Far-Flung Effects

Becton, Dickinson and Co.'s

planned $12 billion acquisition of CareFusion Corp.

may have far-flung effects on the medical technology sector, an analyst said Tuesday. Stifel's Richard Wise said the deal may force C.R. Bard Inc.

to "bulk up" with a larger acquisition than investors had previously contemplated. For Baxter International Inc.

, which plans next year to split into separate drug and hospital supply companies, Wise thinks the Becton deal could result in higher value getting placed on the resulting new company. Hospital suppliers Omnicell, Inc.

and Hospira, Inc.

may both get hurt in a debate over longer-term competition, "but we're inclined to think they will both benefit from the continued wave of med-tech mergers," Wise said, although shares in the sector were quiet Tuesday. Other major deals in the sector include the pending $42.9 billion acquisition by Medtronic, Inc.

of Ireland's Covidien plc

and Zimmer Holdings Inc.'s

plan to pick up privately held Biomet Inc. for $13.3 billion. Becton agreed Monday to buy CareFusion, swapping $49 in cash and about 0.078 of a Becton Dickinson (BDX) share for each CareFusion share. The Becton deal will result in a "one-stop-shop” for hospitals seeking suppliers, according to ISI Group's Vijay Kumar. Deutsche Bank's Kristen Stewart said the Becton deal "solidifies its leadership in medical management and patient safety. And CareFusion should know about patient safety. The Department of Justice earlier this year levied $40.1 million fine on CareFusion to settle criminal charges that it paid $11 million kickback to a physician serving on and independent safety board and illegally promoted off-label uses of its products.