CareFusion
| Company type | Public |
|---|---|
| Industry | Medical technology |
| Predecessor | Cardinal Health medical technology divisions |
| Founded | 2009 |
| Fate | Acquired by Becton Dickinson (BD) in 2015 |
| Headquarters | San Diego , United States |
Key people | Kieran T. Gallahue (Chairman and CEO from 2011) |
| Products | Wireless patient identification solutions, automated medication dispensing systems, intravenous drug delivery pumps, respiratory technologies |
Number of employees | 1500 (as of acquisition of Pyxis in 1996) |
| Website | www |
CareFusion Corporation operated as a company specializing in medical technology, with a primary emphasis on minimizing medication errors and combating infections acquired within healthcare settings.
Spinoff
Founded in 2009, CareFusion emerged as a spin-off from Cardinal Health’s medical technology divisions and commenced trading on the New York Stock Exchange on September 1, 2009. While Cardinal Health’s main pharmaceutical distribution business was characterized by low margins and steady performance, its medical technology segments offered higher profitability but proved difficult to integrate.
The company’s name originated from Care Fusion, a business acquired by Cardinal Health in 2006 that marketed wireless patient identification solutions. Additionally, CareFusion incorporated Cardinal’s automated medication dispensing systems derived from Pyxis Corporation, which was purchased in 1996 for $920 million. Pyxis, established in 1987 by Ronald R. Taylor and investor Tim Wollaeger in San Diego, employed approximately 1,500 staff at the time of acquisition. This move aligned with Cardinal Health’s objective to grow its portfolio of higher-margin products.
Moreover, CareFusion included assets from Alaris Medical Systems, a San Diego-based manufacturer of intravenous drug delivery pumps acquired by Cardinal Health in 2004 for $2 billion.
Subsequent history
In May 2010, CareFusion broadened its product range by acquiring Medegen, Inc. for $225 million in cash. Leadership was strengthened on February 1, 2011, when Kieran T. Gallahue was named chairman and CEO. In April 2012, the company sold its Nicolet division to Natus Medical for $58 million. That July, it expanded its UK presence through the acquisition of U.K. Medical Limited, a major supplier to both the National Health Service and private healthcare providers in the United Kingdom. Later that year in November, CareFusion extended its international reach by purchasing Intermed Equipamento Medico Hospitalar Ltda, a Brazilian firm specializing in respiratory technologies serving markets across Latin America and Europe.
Further growth included acquiring Rowa Automatisierungssysteme in 2011 and enhancing manufacturing capabilities by buying Vital Signs Inc. from GE Healthcare in November 2013 for $500 million—excluding European operations. In addition, CareFusion obtained a 40% ownership interest in Israeli company Caesarea Medical Electronics during the same year, increasing its global footprint.
In January 2014, CareFusion reached a $40.1 million settlement with the U.S. Department of Justice regarding allegations of marketing its product ChloraPrep for uses beyond those approved by the FDA. This case subsequently attracted attention due to legal controversies involving DOJ personnel.
Becton Dickinson (BD) announced its intent to acquire CareFusion for $12.2 billion in cash and stock in October 2014, finalizing the deal by March 17, 2015. This acquisition significantly enhanced BD’s healthcare product offerings and expanded its international market position.