Updated version 3 - Becton Dickinson commits to invest 19 billion dollars in an agreement with the government.
路透社2026/10/06 15:18BD will invest $3 billion to expand its manufacturing operations in the United States, aiming to increase the proportion of critical medical supplies sourced domestically to approximately 80%. The agreement links the company’s U.S. manufacturing commitments to tariff relief. Information about the stock price was added in the third paragraph, analyst commentary in the sixth paragraph, and background information in the eleventh paragraph. Siddhi Mahatole, Reuters, October 6 — Becton Dickinson and Company (BDX.N) has become the first major U.S. medical device manufacturer to sign an agreement with the U.S. government to expand domestic manufacturing, with a pledge to invest $19 billion in the coming years in exchange for protection against future tariffs. Under the agreement, the company said on Tuesday it plans to make capital, operational, and supply chain investments in the U.S., with $3 billion specifically allocated to strategic manufacturing facilities across the country. Shares of the medical device maker rose 2.4% in early trading. This deal is one of several measures by the Trump administration to encourage domestic healthcare manufacturing through the threat of tariffs, with several major pharmaceutical companies having already committed billions of dollars toward building and expanding production and R&D facilities in the U.S. The agreement ties BD’s U.S. manufacturing commitments to future exemptions from tariffs on related products and raw materials under Section 232, depending on the final scope of the measures and whether the company achieves agreed-upon milestones. Jefferies analyst Matthew Taylor commented, “We believe clarity on tariff policy, or tariff impacts being potentially ‘not as bad as feared,’ could be an inflection point for the medtech sector.” He added, “We are curious if there are more medtech-related announcements pending.” The company plans to increase annual U.S. production by around 5 billion basic medical supply units, raising the domestic supply share to roughly 80%. BD also intends to use U.S.-made steel to manufacture all needles for the U.S. market domestically. Becton Dickinson stated that, as the final tariff rates, product range, and implementation timelines remain undetermined, the financial impact of the agreement has not been quantified yet. This announcement builds on President Donald Trump’s Monday statement that the company has agreed to invest $3 billion to shift basic medical product manufacturing to the U.S., with more than $1 billion allocated to Nebraska. In January this year, Becton Dickinson announced a $110 million investment to expand the production of prefilled syringes and needles in Columbus, Nebraska, expected to create about 120 jobs. Syringe products are expected to start shipping to customers by mid-2026.
Stock price information added in paragraph 3, analyst commentary added in paragraph 6, background information added in paragraph 11
Siddhi Mahatole
Reuters, Oct 6 - Becton Dickinson and Company BDX.N became the first major U.S. medical device company to reach a deal with the U.S. government to expand domestic manufacturing, pledging to invest $19 billion over the coming years in exchange for relief from future tariffs.
Under the agreement, the company said on Tuesday it plans to make capital, operational, and supply chain investments in the U.S., with $3 billion dedicated specifically to strategic manufacturing sites across the country.
The medical device maker’s shares rose 2.4% in early trading.
The deal is one of the initiatives by the Trump administration (link) to use tariff threats to stimulate domestic healthcare manufacturing. A number of leading pharmaceutical firms have already pledged billions of dollars (link) to build and expand manufacturing and R&D facilities in the U.S.
The agreement ties BD’s U.S. manufacturing commitment to the exemption of tariffs on related products and raw materials under Section 232, depending on the final scope of measures and whether the company meets agreed milestone targets.
Jefferies analyst Matthew Taylor said, “We believe clarity on tariff policies, or if the ultimate tariff impact is ‘not as bad as feared’, could be an inflection point for the medtech sector.” He added, “We are curious whether more medtech announcements are in the pipeline.”
The company plans to increase annual U.S. production by about 5 billion basic medical supply items, raising its domestic supply share to roughly 80%.
The company also plans to use U.S.-made steel for all needles manufactured in the U.S. for the American market.
Becton Dickinson said that as the final tariff rates, product scope, and timeline for implementation are not yet determined, it has not quantified the financial impact of the agreement.
The announcement builds on President Donald Trump’s statement on Monday (link), saying the company had agreed to invest $3 billion to move production of basic medical products to the U.S., with over $1 billion going to Nebraska.
In January this year, Becton Dickinson had announced (link) it would invest $110 million in Columbus, Nebraska, to expand production of pre-filled syringes and needles, expected to create around 120 jobs, with the syringe products expected to be shipped to customers beginning mid-2026.
(To assist non-English speakers, Reuters provides automated translations of its reports in several other languages. As automated translation may contain errors or lack necessary context, Reuters does not guarantee the accuracy of automated translation, and it is provided for reader convenience only. Reuters assumes no responsibility for any damage or loss arising from the use of automated translation.)
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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