BD Medical’s sales
Becton Dickinson (or BD) (BDX) reported ~$3 billion of revenues worldwide in 1Q16. Of that, ~$2.1 billion was generated by BD Medical, a segment that contributed ~69% to BD’s total revenues. These sales figures represent about a 92.1% YoY (year-over-year) increase in 1Q16 on an operational basis.
On a comparable basis, the adjusted segment revenues increased by approximately 1.9%. All the segment divisions reported strong growth in revenues except respiratory solutions. Its respiratory solutions division registered a decline of 6.8%, largely attributable to the tough comparisons to the strong prior year’s results.
Pharmaceuticals witnessed a growth of around 2.6%. It was boosted by the growth in SAIS (Self-Administration Injection Systems) but was impacted by the timing of the orders expected in the latter part of the year.
Diabetes care segment revenues increased 3.9%, driven by growth in pen needles sales. Pen needles, used with injection pens to inject various medications, are commonly used by diabetes patients to administer insulin injections. BD, the global leader in safety products and medication management products, continued to see sustained significant growth in these segments.
A variety of collaborations and acquisitions helped accelerate BD’s sales and further growth and expansion. These included the following:
- acquisition of ARx, a pharmacy automation distributor
- collaboration with Medtronic for insulin infusion sets production
- collaboration with Aethon to provide assistance to hospital pharmacies for intravenous medication preparation and tracking its delivery
Abbott Laboratories (ABT), Baxter (BAX), and Boston Scientific (BSX) are some of BD’s major US competitors in the medical devices industry. They’re expected to report YoY sales growth of -2.6%, -37.5, and 8.2%, respectively, in 1Q16.
Investors seeking exposure to Becton Dickinson can invest in the iShares S&P 500 Growth ETF (IVW). BD accounts for approximately 0.35% of IVW’s total holdings.