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BD's (BDX) New Launch to Result in Optimal IV Placement

Becton, Dickinson and Company BDX, popularly known as BD, recently launched a new, easy-to-use advanced ultrasound device with a specialized probe, BD Prevue II System. The device, which addresses an unmet need in intravenous (IV) access through real-time needle depth markers, has been designed to provide clinicians with optimal IV placement.

The latest launch is expected to boost BD’s Medication Delivery Solutions (MDS) business unit of the broader BD Medical segment globally.

Significance of the Launch

Per estimates provided by BD, more than 90% of hospitalized patients receive IV therapy via a peripheral IV catheter. However, nearly two-thirds of these patients have vessels that are difficult to visualize and access, often resulting in additional needlesticks, vessel damage and infiltration into the surrounding tissue.

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The BD Prevue II System features the BD Cue Needle Tracking System, which offers an ultrasound image of the needle trajectory and is compatible with BD Cue Needle Tracking-enabled catheters. Simulated studies have shown that pairing a needle-tracking system with ultrasound guidance may aid in reducing the number of attempts and time to successful vessel access, which may make vascular access procedures safer and easier for clinicians and patients.

Per an expert familiar with the placement of IVs, patients living with chronic conditions (like heart failure) may suffer from poor circulation. Large amounts of scar tissue from frequent venous access make their veins more difficult to locate, thus posing a challenge for placing a good, lasting peripheral IV line. However, with the use of ultrasound guidance technology, quick and successful placement of IVs in such patients is possible. This may lead to faster treatment, fewer sticks for the patients and an improved experience.

Per management, the availability of the BD Prevue II System is expected to lead to a situation where every needlestick has a pre-defined pathway for successful placement. Management also feels that first-stick success reduces the pain and anxiety often experienced by patients while undergoing multiple IV access attempts and provides clinicians with IV workflow efficiencies.

Industry Prospects

Per a report by Allied Market Research, the global IV therapy and vein access market was valued at $22.8 billion in 2020 and is anticipated to reach $37.5 billion by 2030 at a CAGR of 5.1%. Factors like the rise in the incidence of chronic diseases, the growing cases of road accidents and the increase in healthcare expenditure and healthcare insurance are likely to drive the market.

Given the market potential, the latest launch is expected to significantly strengthen BD’s business worldwide.

Notable Developments in BD Medical Segment

BD reported its first-quarter fiscal 2023 results in February, where it registered an improvement in the overall base revenues and a year-over-year uptick in bottom-line results. The MDS unit’s performance reflected the continued strong performance in vascular access management outside the United States. The segment’s Medication Management Solutions business unit’s quarterly performance was boosted by the momentum of the company’s Pharmacy Automation solutions, including both Parata and BD Rowa.

The Pharmaceutical Systems unit’s performance reflected BD’s strength in pre-fillable solutions for high-growth markets, like biologic drugs and vaccines, supported by the company’s differentiated supply capabilities.

Price Performance

Shares of BD have lost 5.7% in the past year compared with the industry’s 4.3% decline and the S&P 500's 8.2% fall.

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Zacks Rank & Other Key Picks

Currently, BD carries a Zacks Rank #2 (Buy).

A few other top-ranked stocks in the broader medical space are Hologic, Inc. HOLX, Henry Schein, Inc. HSIC and Masimo Corporation MASI.

Hologic, carrying a Zacks Rank #2 at present, has an estimated long-term growth rate of 15.2%. HOLX’s earnings surpassed the Zacks Consensus Estimate in all the trailing four quarters, the average beat being 30.6%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Hologic has gained 9.3% against the industry’s 14.2% decline in the past year.

Henry Schein, sporting a Zacks Rank #1 at present, has an estimated long-term growth rate of 8.1%. HSIC’s earnings surpassed estimates in three of the trailing four quarters and matched the same in the other, the average beat being 2.9%.

Henry Schein has lost 8.1% compared with the industry’s 4.3% decline over the past year.

Masimo, flaunting a Zacks Rank #1 at present, has an estimated growth rate of 3.5% for 2023. MASI’s earnings surpassed estimates in all the trailing four quarters, the average beat being 9%.

Masimo has gained 39.4% against the industry’s 14.2% decline over the past year.

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Becton, Dickinson and Company (BDX) : Free Stock Analysis Report

Hologic, Inc. (HOLX) : Free Stock Analysis Report

Henry Schein, Inc. (HSIC) : Free Stock Analysis Report

Masimo Corporation (MASI) : Free Stock Analysis Report

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