CareFusion
A former United States medical technology company focused on medication safety, infusion, respiratory care, and healthcare-associated infection prevention.
Last updated August 26, 2026
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Overview
CareFusion Corporation was a United States medical technology company formed in 2009 through the separation of selected medical-device businesses from Cardinal Health. Its portfolio was assembled around two broad healthcare problems: reducing medication errors and preventing healthcare-associated infections. The company supplied hospitals and other healthcare providers with technologies used in medication management, infusion therapy, respiratory care, infection prevention, and related clinical workflows. The spinoff reflected a strategic difference between Cardinal Health's core drug-distribution operations and its higher-margin, more technology-intensive medical-device businesses. Cardinal's distribution business was comparatively predictable and lower margin, whereas the device operations involved product development, regulatory exposure, clinical adoption, and potentially greater growth. CareFusion therefore became a separately traded medical-technology company, beginning public trading on the New York Stock Exchange on September 1, 2009. The CareFusion name came from CareFusion, a business Cardinal Health had acquired in 2006. That earlier company, based in McLean, Virginia, sold wireless patient-identification systems for hospitals. The new corporation also incorporated several significant Cardinal Health acquisitions. These included the Pyxis automated medication-dispensing cabinet business, obtained through Cardinal's 1996 acquisition of Pyxis Corporation, and the Alaris infusion-pump business, obtained through Cardinal's 2004 acquisition of Alaris Medical Systems. The resulting company combined medication-management systems, infusion devices, respiratory technologies, infection-prevention products, and other hospital equipment under one corporate structure. CareFusion expanded through acquisitions during its independent period. In 2010 it purchased Medegen, a medical-device and medication-management company, for cash. In 2011 it acquired Rowa Automatisierungssysteme, adding automation capabilities. In 2012 it sold the Nicolet operating unit to Natus Medical and acquired U.K. Medical, a United Kingdom distributor serving the National Health Service and private healthcare providers. Later in 2012 it acquired Intermed Equipamento Medico Hospitalar in Brazil, a respiratory-technology company whose products included ventilators and respiratory-care devices for infant, pediatric, and adult patients. In 2013 CareFusion acquired most of Vital Signs from GE Healthcare and purchased a minority stake in Caesarea Medical Electronics of Israel. The company also faced significant legal and regulatory scrutiny. In January 2014, the United States Department of Justice announced a settlement concerning allegations that CareFusion promoted ChloraPrep for uses not approved by the Food and Drug Administration. CareFusion agreed to pay $40.1 million. The matter later attracted additional attention after the federal attorney associated with the case, Jeffery Wertkin, was arrested in 2017 in an unrelated allegation involving a sealed whistleblower complaint, prompting review of aspects of the earlier case. CareFusion's independent existence ended when Becton, Dickinson and Company announced an agreement to acquire it in October 2014. The transaction was valued at approximately $12.2 billion, with shareholders receiving a combination of cash and stock valued at $58 per CareFusion share under the announced terms. The acquisition closed on March 17, 2015. CareFusion subsequently became part of BD, and the standalone CareFusion corporation ceased operating as an independent publicly traded company. Its technologies and product franchises continued within BD's medical-device portfolio.
History
CareFusion originated in Cardinal Health's effort to separate its medical-technology activities from its principal pharmaceutical-distribution business. Cardinal had accumulated a range of hospital-device operations, but the economics and risk profile of those businesses differed substantially from drug distribution. Medical technologies generally required more product development, regulatory management, clinical support, and capital investment, while offering different margin and growth characteristics. CareFusion was established in 2009 as the corporate vehicle for these activities and became publicly traded on the New York Stock Exchange on September 1 of that year. The corporate name was derived from CareFusion, a business acquired by Cardinal Health in 2006. That business supplied wireless patient-identification systems used in hospitals. The new CareFusion corporation was broader than the earlier company and included important businesses acquired by Cardinal during the preceding years. Cardinal's acquisition of Pyxis Corporation in 1996 brought automated dispensing cabinets and medication-management systems into the portfolio. Pyxis had been founded in San Diego in 1987 by Ronald R. Taylor and investor Tim Wollaeger. Cardinal later acquired Alaris Medical Systems in 2004 for approximately $2 billion, adding intravenous drug pumps and related infusion technology. These assets formed the basis of CareFusion's medication-safety and infusion businesses. After the spinoff, CareFusion pursued both organic development and acquisition-led expansion. In May 2010 it bought Medegen for $225 million in cash. It acquired Rowa Automatisierungssysteme in 2011, adding automation-related capabilities. In April 2012 the company sold its Nicolet operating unit to Natus Medical for $58 million. In July of the same year it acquired U.K. Medical, a distributor supplying the United Kingdom's National Health Service and private healthcare customers. In November 2012 it acquired Intermed Equipamento Medico Hospitalar in Brazil. Intermed designed, manufactured, and marketed ventilators and respiratory-care equipment for infant, pediatric, and adult patients, with use in Brazil, Latin America, and Europe. CareFusion continued broadening its international and product presence in 2013. It acquired Vital Signs, a medical-device manufacturing business, from GE Healthcare, although the transaction excluded the European operations. It also purchased 40 percent of Caesarea Medical Electronics, an Israeli medical-device company. Together, these transactions reinforced CareFusion's emphasis on hospital equipment, respiratory care, clinical automation, and medication-management systems. The company encountered a major compliance dispute involving ChloraPrep, its chlorhexidine-based product used to prepare skin before surgery. In January 2014, the United States Department of Justice announced a $40.1 million settlement based on allegations that CareFusion promoted the product for uses not approved by the Food and Drug Administration. The matter remained controversial after Jeffery Wertkin, the DOJ Assistant Attorney General associated with the case, was arrested in January 2017 on allegations that he attempted to sell a copy of a sealed whistleblower complaint. The DOJ subsequently reviewed the earlier matter, although the available reference material does not establish a final change to the settlement. CareFusion's independent corporate life ended through a transaction with Becton, Dickinson and Company. BD announced the acquisition in October 2014 at an announced value of approximately $12.2 billion, based on a combination of cash and stock and a stated value of $58 per CareFusion share. The transaction closed on March 17, 2015. CareFusion thereafter operated as part of BD rather than as a separately listed company, and its product families became components of BD's broader medical-technology portfolio.
- 2015
Acquisition by Becton, Dickinson and Company
[1]BD completed its acquisition of CareFusion on March 17, ending the company's independent public-market existence.
- 2014
Department of Justice settlement
[1]CareFusion agreed to a $40.1 million settlement over allegations concerning promotion of ChloraPrep for unapproved uses.
- 2013
Vital Signs and Caesarea Medical Electronics transactions
[1]CareFusion acquired most of Vital Signs from GE Healthcare and purchased a 40 percent interest in Caesarea Medical Electronics.
- 2012
Nicolet operating unit divestiture
[1]CareFusion sold the Nicolet operating unit to Natus Medical for $58 million.
- 2012
U.K. Medical acquisition
[1]The company acquired a United Kingdom distributor serving public and private healthcare customers.
- 2012
Intermed acquisition
[1]CareFusion acquired Brazilian respiratory-technology company Intermed Equipamento Medico Hospitalar.
- 2011
Rowa Automatisierungssysteme acquisition
[1]CareFusion acquired Rowa Automatisierungssysteme as part of its expansion in automation-related medical technology.
- 2010
Medegen acquisition
[1]CareFusion acquired Medegen for $225 million in cash.
- 2009
CareFusion is formed through a Cardinal Health spinoff
[1]Cardinal Health separated selected medical-technology operations into CareFusion, which began trading publicly on September 1.
- 2006
Cardinal Health acquires the CareFusion business
[1]Cardinal acquired the earlier CareFusion business, which sold wireless patient-identification systems for hospitals and later supplied the name for the spun-off corporation.
Products and positioning
Hospital-focused medical technology provider centered on medication safety, infusion therapy, respiratory care, automation, and infection prevention.
Automated medication management
Pyxis
Pyxis was the automated medication-dispensing cabinet business originally developed by Pyxis Corporation and acquired by Cardinal Health. The systems were designed for hospital medication storage, dispensing, access control, and workflow management. The business became one of the principal medication-safety assets transferred into CareFusion at the 2009 spinoff.
Infusion systems
Alaris
Alaris comprised intravenous drug pumps and related infusion technologies obtained through Cardinal Health's 2004 acquisition of Alaris Medical Systems. Within CareFusion, the product family supported controlled delivery of medications and fluids in hospital settings and formed a central part of the company's medication-safety and infusion-therapy activities.
Infection prevention
ChloraPrep
ChloraPrep was CareFusion's commercial chlorhexidine-based skin-preparation product, used to clean skin before surgery and other invasive procedures. It represented the company's infection-prevention focus. The product was also the subject of the 2014 United States Department of Justice settlement concerning alleged promotion for uses not approved by the FDA.
Respiratory care
Intermed respiratory-care products
Intermed's portfolio included ventilators and other respiratory-care devices for infant, pediatric, and adult patients. CareFusion acquired the Brazilian company in 2012, strengthening its presence in respiratory technology and extending its reach across Brazil, Latin America, and Europe.
Hospital identification and workflow
Wireless patient-identification systems
Wireless patient-identification systems were associated with the earlier CareFusion business acquired by Cardinal Health in 2006. These hospital technologies helped identify patients and connect identity information with clinical workflows, contributing to the name and heritage of the later CareFusion corporation.
Controversies
2014
ChloraPrep promotion settlement
The United States Department of Justice alleged that CareFusion promoted ChloraPrep for uses not approved by the FDA. CareFusion agreed to pay $40.1 million to resolve the matter. The case later received renewed scrutiny after the arrest of Jeffery Wertkin in 2017 in connection with allegations involving a sealed whistleblower complaint.
Brand decisions
2014
Agree to acquisition by Becton, Dickinson and CompanyM&ABackground
CareFusion had developed a broad hospital-device portfolio spanning medication management, infusion, respiratory care, and infection prevention.
Action taken
BD announced a cash-and-stock acquisition valued at approximately $12.2 billion, with an announced value of $58 per CareFusion share.
Aftermath
The transaction closed on March 17, 2015, and CareFusion ceased to be an independent listed company.
Announced transaction value. $12.2 billion (October 2014 announcement)
2012
Expand into international distribution and respiratory careStrategyBackground
CareFusion sought to broaden its hospital-device platform beyond medication management and infusion products.
Action taken
The company acquired U.K. Medical and Intermed, adding United Kingdom distribution and Brazilian respiratory technologies.
Aftermath
The transactions expanded CareFusion's presence in public and private healthcare distribution and respiratory equipment across multiple regions.
2009
Separate medical technology from Cardinal Health distributionStrategyBackground
Cardinal Health's medical-device businesses had a different margin, risk, and operating profile from its core drug-distribution activities.
Action taken
Cardinal Health created CareFusion as a standalone public company containing selected medical-technology operations.
Aftermath
CareFusion began trading on the New York Stock Exchange on September 1, 2009.
Sources1 sources
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