Markets
MDT

Becton, Dickinson Inaugurates Another Diabetes Care Facility - Analyst Blog

A generic image of a pen on a chart
Credit: Shutterstock photo

Becton, Dickinson and CompanyBDX , commonly known as BD, announced that it has officially inaugurated its Advanced Diabetes Care facility in Andover, MA. The facility will aid in the research and development (R&D) as well as manufacturing of novel solutions for Type 1 and Type 2 diabetes.

The Andover facility, which will be the new headquarters for BD's Advanced Diabetes Care platform, embodies a "Center of Excellence" model. Management is optimistic that having R&D and manufacturing capabilities under one roof will provide significant synergies. Per management, about 100 representatives will be housed in the 75,000 square foot facility.

We consider this a very significant development for BD, given that it will considerably enhance the long-term prospects of the company's Advanced Diabetes Care platform. According to a report published by Transparency Market Research , the worldwide market for diabetes devices and drugs is on the rise, on the back of a global surge in diabetic population. Moreover, the market is also gaining traction due to technological innovations and large-scale R&D activities in the field of diabetes. The diabetes devices and drugs market worldwide is estimated to reach nearly $83 billion in 2019 from $54 billion in 2012.

As a key player in this market, BD is poised to gain a large chunk as the company is successful in bringing innovation to the table. Of late, the company has been quite focused on augmenting its product pipeline to facilitate better treatment of diabetes. Last month, BD released new clinical data demonstrating that its infusion set with BD FlowSmart technology can improve insulin flow and reduce silent occlusions.

Three studies featuring the new infusion set were presented at the American Diabetes Association's annual meeting at Boston from June 5-9, 2015.

Additionally, BD and Medtronic MDT have announced a collaboration to introduce the new insulin pump infusion set in the market. As part of the deal, Medtronic will commercialize the infusion set, while BD will manufacture the product.

BD has also collaborated with JDRF and The Leona M. and Harry B. Helmsley Charitable Trust on the research and development of this new product. The infusion set is expected to be rolled out in the U.S. in fiscal 2016.

We feel the new product will help generate better revenues from the Diabetes Care segment, which was down 1.6% in the last reported quarter.

Zacks Rank

Currently, BD carries a Zacks Rank #3 (Hold). Better-ranked medical instrument stocks at the moment include RTI Surgical RTIX and Synergetics USA SURG . Both the stocks sport a Zacks Rank #1 (Strong Buy).

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days . Click to get this free report >>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

MEDTRONIC (MDT): Free Stock Analysis Report

BECTON DICKINSO (BDX): Free Stock Analysis Report

SYNERGETICS USA (SURG): Free Stock Analysis Report

RTI SURGICAL (RTIX): Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

In This Story

MDT BDX RTIX

Other Topics

Stocks