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A Breakdown of C. R. Bard’s Urology Business Segment

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An overview of C. R. Bard’s Urology segment

C. R. Bard’s (BCR) Urology segment contributes around 25% of the company’s total revenues. The segment reported an increase of ~1% in net sales in 2015. The segment has a five-year compound growth rate of ~3.3%. C. R. Bard is a leader in urinary drainage and infection control. The company helps hospitals prevent CAUTIs (catheter associated urinary tract infections) with various products and programs such as Foley catheters and the Zero-In program, which helps improve processes and reduce procedural variations. Furthermore, developed European markets present long-term market opportunities.

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Key growth drivers

In 2015, whereas US net sales in the Urology segment increased by approximately 4%, there was a ~5% decline in international sales due to the impact of foreign currency headwinds. However, on a constant currency basis, international revenues increased by ~3%. Net sales of basic drainage products grew by ~2% in 2015 and sales of urological specialty products and continence products sales increased by ~4%. Sales of C. R. Bard’s StatLock Universal Plus Stabilization Device declined by ~2% on a reported basis.

C. R. Bard’s Urological segment’s future growth is expected to be driven primarily by expansion across the homecare market, hospital basic drainage products, and products that enable a reduction in CAUTIs. The Rochester Medical acquisition led to the expansion of the company’s urological product portfolio. The graph above shows long-term opportunities in a number of urological specialty areas.

Major competitors

C. R. Bard’s Urological segment competes with Medtronic (MDT), Boston Scientific (BSX), and Thermo Fisher Scientific (TMO). Investors could consider investing in the iShares Core S&P 500 ETF (IVV), which has a ~0.09% exposure to C. R. Bard.

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