Leading medical technology firm
Becton, Dickinson and Company
) recently revealed that it has accomplished the takeover of
Safety Syringes, Inc. The monetary terms of the acquisition were
Safety Syringes was a privately held company based in
California which focuses on creating anti-needlestick instruments
for prefilled syringes.
Becton Dickinson stated that it was enthusiastic about the
takeover. The offerings of Safety Syringes would align with the
interests of the company by enhancing its focus on high value
products and safety of healthcare staff. The takeover represents
Becton Dickinson's commitment toward innovative offerings and
strengthens its role on safety know how.
Becton Dickinson believes that the takeover will be dilutive,
in a very minor way, to its earnings for fiscal 2013. The
acquisition will not affect its earlier released guidance for
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.
Becton Dickinson faces a wide range of competitors, including
) in certain niches, in each of its three business segments. Our
Neutral recommendation is supported by a short-term Zacks #3 Rank
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