Margin Outlook
Q: How will margins improve, and is the 300bps sequential increase achievable?
A: Management expressed confidence in margin progression, noting that Q1 margins exceeded expectations. Transitory headwinds like inflation and inventory dynamics will diminish in Q2. With ongoing cost improvement initiatives and moderating inflation, they are confident in achieving the 300 basis points step-up in margins from Q1 to Q2.

Revenue Guidance Increase
Q: What gives confidence to raise revenue guidance at this point?
A: The slight increase in revenue guidance is driven by positive engagement with customers on the Alaris system, establishing a $200 million floor for the year. Strong underlying growth drivers, including double-digit growth in Biologics and robust demand in key platforms, contribute to confidence in accelerating organic growth in the second half.

China Sales and Impact
Q: How did China perform, and what's the outlook amid VoBP impacts?
A: China sales played out as expected, with VoBP impacting primarily the MDS segment. Despite a 5% decline in the quarter, strong growth in BD Interventional (mid-teens growth) and Life Sciences (high single digits) was observed. Management expects China to be flat to up low single digits for the year.

Alaris System Impact
Q: How is the Alaris relaunch progressing, and its impact on growth?
A: The Alaris system has been relaunched with new improvements, and early customer responses have been positive. While Q1 saw minimal contribution, Alaris is expected to add about 1 point of growth in the second half, with a $200 million revenue floor established for the year.

Operating Margin Expansion into FY25
Q: How confident are you in achieving 100bps margin expansion next year?
A: Management is highly confident in the 100 basis points operating margin expansion for FY25, citing strong progress in initiatives like Project Recode and BD Excellence. Network simplification efforts are expected to double their benefits in 2025, supporting continued margin progression.

M&A Outlook and Cash Flows
Q: What's the outlook for M&A given improved cash flows?
A: Strong cash flow performance in Q1 positions the company well for potential M&A. Management remains disciplined, focusing on accretive growth and maintaining net leverage targets, with an active pipeline of strategic opportunities.

Medical Segment Growth Expectations
Q: Why is medical growth in line with corporate average despite tailwinds?
A: While Pharm Systems is expected to grow high single digits, headwinds from VoBP in China impact MDS. MMS benefits from Alaris returning to contribute to growth, and dispensing businesses are performing well, but overall medical segment growth aligns with the corporate average due to these offsetting factors.

Pharmacy Automation Outlook
Q: How is pharmacy automation performing, and what's the outlook?
A: Pharmacy automation showed solid growth in hospital and alternate sites. Despite tough comparisons due to a strong prior year quarter, the order book looks good, and the segment is projected to maintain low double-digit growth for the rest of the year.

Molecular Point-of-Care Market
Q: How will BD's Alliance system compete in molecular point-of-care?
A: BD's Alliance system targets unmet needs by delivering clear-waived results within less than 15 minutes. Leading with CT/GC assays, it addresses the increasing burden of STIs, enabling test-and-treat capabilities in decentralized settings.

Peso/Wage Impact and Anticoagulant Business in China
Q: Update on peso/wage impact and anticoagulant capacity in China?
A: Wage dynamics in the supply chain continue but are playing out as expected. For the anticoagulant business in China, capacity is being converted to support biologics due to increased demand, allowing better service to that market later in the year.