Leading medical technology firm
Becton, Dickinson and Company
) recently revealed that its segment BD Medical received FDA
clearance for its BD PhaSeal Closed System Transfer Device as per
the most recently devised ONB code. The BD PhaSeal system is the
sole such approved system under the code, which was devised for
devices with indications for use with hazardous substances. The
FDA clearance reflects the company's commitment to provide a safe
workplace for healthcare employees.
The approval from the FDA relied on three parameters namely,
blockage of entry of microbials, escape prevention of dangerous
drugs and blockage of contaminating substances from the
environment. The BD PhaSeal System is the sole Closed
System Transfer Device at this time that satisfies all three
Thus, the BD PhaSeal System curtails healthcare workers'
exposure to dangerous drugs. It physically disallows the escape
of substances from the system to the environment as well as the
leakage of hazardous material in the surroundings into the
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. We
currently have a Neutral recommendation on Becton Dickinson. The
stock retains a Zacks Rank #2 (Buy) rating.
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