Becton, Dickinson and Company BDX, popularly known as BD, recently announced a strategic collaboration with Navigate BioPharma Services, Inc. The tie-up is aimed at exploring opportunities to develop and commercialize flow cytometry-based companion diagnostics and tools for clinical decisions.
Navigate BioPharma Services, Inc., a provider of innovative biomarker and specialty bioanalytic solutions for clinical development and companion diagnostic applications, is an independently operating subsidiary within the Novartis group of companies.
The latest partnership is expected to significantly strengthen BD’s foothold in the global Biosciences (BDB) business, which is part of its broader Life Sciences arm.
Rationale Behind the Collaboration
The collaboration is expected to leverage the expertise and capabilities of both companies to provide end-to-end solutions for pharmaceutical and biotechnology companies. These companies are developing novel therapies that require companion diagnostics, tests intended to match patients with advanced treatments and critical clinical trial applications that use flow cytometry. The partnership also aims to address a critical gap in the clinical trial field for an integrated solution provider from method development to commercialization.
Per BD’s management, the partnership will likely combine Navigate BioPharma's experience in designing and validating biomarker assays for clinical trials and regulatory submissions with the broad BD portfolio of flow cytometry instruments, reagents, software and in vitro diagnostics (IVD) development services. This, in turn, is expected to potentially accelerate the delivery of innovative personalized therapies to patients who need them.
Navigate BioPharma's management believes that flow cytometry-based companion diagnostics can aid in identifying patients who are most likely to benefit from a specific therapy, monitor their response to treatment and optimize dosing and safety from a patient sample. Hence, advances in flow cytometry technology made by BD will likely enable IVD testing to be executed with accuracy, automation and standardization across all elements of the workflow.
Industry Prospects
Per a report by BCC Research, theglobal marketfor flow cytometry was valued at $5.2 billion in 2022 and is expected to reach $7.6 billion in 2027 at a CAGR of 8%. Factors like technological advancements, the increasing trend toward single-cell analysis and the growing adoption of flow cytometry in clinical applications are likely to drive the market.
Given the market potential, the latest association is expected to significantly strengthen BD’s business worldwide.
Notable Developments in Life Sciences Arm
Last month, BD reported its third-quarter fiscal 2023 results, wherein it registered a solid uptick in its top-line and bottom-line results, along with improvements in the overall base revenues. Robust performances by its BDB business unit reflected double-digit growth in Cancer reagents leveraging BD’s growing installed base of FACSLyric analyzers, adoption of FACSDuet sample preparation automation and continued strong growth in research reagents enabled by its BD Horizon dyes.
The same month, BD received the FDA’s 510(k) clearance for the BD Respiratory Viral Panel for the BD MAX System.
In June, BD announced the worldwide commercial launch of a new automated instrument, BD FACSDuet Premium Sample Preparation System.
Price Performance
Shares of BD have gained 2.5% in the past year compared with the industry’s 7.4% rise and the S&P 500's 11.3% growth.
Image Source: Zacks Investment Research
Zacks Rank & Key Picks
Currently, BD carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader medical space are DaVita Inc. DVA, HealthEquity, Inc. HQY and Integer Holdings Corporation ITGR.
DaVita, carrying a Zacks Rank #2 (Buy) at present, has an estimated long-term growth rate of 12.7%. DVA’s earnings surpassed estimates in three of the trailing four quarters and missed once, with an average surprise of 21.4%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
DaVita has gained 4.5% against the industry’s 9.9% decline over the past year.
HealthEquity, carrying a Zacks Rank #2 at present, has an estimated long-term growth rate of 22.2%. HQY’s earnings surpassed estimates in all the trailing four quarters, with an average of 13%.
HealthEquity has gained 8.2% against the industry’s 7.2% decline over the past year.
Integer Holdings, carrying a Zacks Rank #2 at present, has an estimated long-term growth rate of 12.1%. ITGR’s earnings surpassed estimates in all the trailing four quarters, the average surprise being 8.4%.
Integer Holdings has gained 26.8% compared with the industry’s 3.4% rise over the past year.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>Becton, Dickinson and Company (BDX) : Free Stock Analysis Report
DaVita Inc. (DVA) : Free Stock Analysis Report
HealthEquity, Inc. (HQY) : Free Stock Analysis Report
Integer Holdings Corporation (ITGR) : Free Stock Analysis Report
To read this article on Zacks.com click here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
