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Which BD Product Launches Will Drive the Most Growth?

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Overview

Becton, Dickinson, and Company (BDX), or BD, reported ~$2.97 billion in revenues in 2Q17. BD is focused on developing new technologies and solutions amid the competitive medical device industry. It continuously invests in acquiring new technologies through R&D (research and development) as well as through acquisitions. The company has invested ~6.3% of its total revenues in R&D.

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New technology for laparoscopic surgery

On June 20, 2017, BD announced that it had received 510(k) clearance from the FDA (US Food and Drug Administration) for its new line of Snowden-Pencer 3.0 mm laparoscopic ergonomic take-apart instruments. These instruments add to the range of BD’s surgical instruments and strengthen the company’s focus on providing minimally invasive therapies to the patients.

BD’s 3.0 mm laparoscopic instruments can function like 5.0 mm instruments due to the standard jaw length that helps provide a less invasive procedure experience.

New launches in BD’s diagnostics business

On June 5, 2017, BD announced FDA approval for its new molecular test for the detection of intestinal bacteria that causes diarrhea. The test extends the capabilities of the molecular testing platform BD Max. The latest offering of the BD Max platform is the BD Max extended enteric bacterial panel. The BD Max suite includes panels for the detection of a wide range of infections and is part of the company’s diagnostic systems business.

According to Doug White, vice president and general manager of Molecular Diagnostics and Women’s Health for BD, “We continue to expand the BD Max system menu of unique, clinically relevant panels. The BD Max system allows the diagnostic laboratory to perform molecular testing in a flexible, automated manner, enabling timely results and more efficient patient management.”

In April 2017, BD announced the launch of the global distribution of its comprehensive range of mass spectrometry products, which will help accelerate the growth of BD’s diagnostic solutions business.

Abbott Laboratories (ABT), Baxter International (BAX), and Thermo Fisher Scientific (TMO) are BD’s major competitors in the diagnostics market. Investors can invest in the iShares Edge MSCI Min Vol USA ETF (USMV), which has about a 1.6% exposure to BD.

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