Medical technology major
Becton, Dickinson and Company
) and JDRF reported that together they are hastening the creation
of new offerings that amalgamate Becton's glucose monitoring and
insulin infusion expertise. The latest 3-year agreement builds
upon a pre-existing relationship between the two parties to
tackle type 1 diabetes.
JDRF is the biggest charitable financier for research into type 1
diabetes. It aims to eventually eliminate type 1 diabetes. In
2012, JDRF provided over $110 million for type 1 diabetes
research. It is at present the sponsor of $530 million in
scientific study in 17 nations.
Those suffering from type 1 diabetes use an insulin pump to
receive insulin which requires usage of a catheter. They must
also monitor the level of glucose by using a continuous glucose
monitoring device, which again requires a catheter-type
BDX and JDRF will strive to create a solitary device which
will carry out both functions, without requiring catheters. This
capability to carry out separate metabolic processes in a
systematic manner, while curtailing human interference, leads to
the concept of an artificial pancreas.
We remain cautious about Becton Dickinson due to the lack of
major short-term catalysts. The rising demand for safety-needle
products (with higher price points and margins) was the primary
driver of the company's past growth. This is not expected to
continue, given that the U.S. market is already largely
On the positive side, Becton Dickinson's preeminent global
healthcare products franchise is partly insulated from volatile
macroeconomic conditions and structural deficiencies elsewhere in
the healthcare delivery field.
The stock retains a Zacks Rank #3 (Hold). We are more positive
about other stocks.
Heartware International Inc.
The Cooper Companies Inc.
) each carry a Zacks Rank #2 (Buy) and are expected to do
BECTON DICKINSO (BDX): Free Stock Analysis
CONMED CORP (CNMD): Free Stock Analysis
COOPER COS (COO): Free Stock Analysis Report
HEARTWARE INTL (HTWR): Free Stock Analysis
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