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Beckton Dickinson: Can Its 3Q17 Strong Results Continue?

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Part 6
Beckton Dickinson: Can Its 3Q17 Strong Results Continue? PART 6 OF 9

How Innovation Is Driving Becton Dickinson’s Growth in 2017

Strong growth

Becton Dickinson (or BD) (BDX) has seen tremendous growth in recent years, driven by some of its major acquisitions and key product launches. The company invested approximately 6.1% of its total revenues in R&D (research and development) in 3Q17.

How Innovation Is Driving Becton Dickinson’s Growth in 2017

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Peers Thermo Fisher Scientific (TMO), Abbott Laboratories (ABT), and Medtronic (MDT) invested about 4.4%, 7.5%, and 7.4% of their total revenues in R&D, respectively, in their recently ended quarters. Investors can consider investing in the Vanguard Health Care ETF (VHT) for exposure to BD and its peers. VHT has approximately 1.3% of its total holdings in BD.

Life Sciences segment: New product innovations

The BD Max System, a molecular testing platform, is a key product among BD’s diagnostics offerings. The company is continuously investing in extending its capabilities and offering differentiated panels to its customers. The BD Max extended enteric bacterial panel is the third among its suite of four enteric series of panels. The last panel to be approved is a viral panel. This new molecular test was approved by the FDA (U.S. Food & Drug Administration) in June 2017. For more details, read Which BD Product Launches Will Drive the Most Growth?

In April 2017, BD received 510(k) clearance from the FDA for the BD FACSLyric flow cytometer system. The system is used with a leucocount reagent assay, which is used to count residual white blood cells in blood products.

Another major product innovation is Kiestra, BD’s urine culture application, which enables laboratory automation. The company continually adds various modules to its Keistra platform to enhance its capabilities. A recent enhancement is the use of BD Keistra with BD BBL plated media, which uses imaging to help discard no growth culture plates. Some of the installations of the application that were expected in the third quarter of 2017 are now expected to be realized in the fourth quarter.

BD medical: New product innovations

BD has launched some new enterprise software for its medication management solutions platforms Cato and Pharmogistics. The products have seen positive customer uptake.

As part of BD’s revenue synergy strategy, the company has launched a new infusion set for Asia. It plans to launch two infection prevention products every year going forward. In 2016, BD entered into an agreement with Fresenius Kabi for the supply of intravenous solutions. The company has since been working with Fresenius to bring a broad portfolio of intravenous solutions to the market in the United States.

In the next part of this series, we’ll look at the company’s updated guidance for 4Q17 and 2017.

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