Becton, Dickinson and Company BDX, popularly known as BD, and Babson Diagnostics announced an expansion of fingertip blood collection and testing technologies for use by U.S. health systems and other large provider networks in settings like urgent cares, doctor offices and other ambulatory care settings. The commercial partnership is an expansion of BD and Babson's collaboration to advance capillary blood testing, which began in 2016 and has since evolved into a strategic partnership.
The blood testing process integrates BD's MiniDraw Capillary Blood Collection System with Babson's BetterWay technologies to enable test results from a few drops of capillary blood collected from a patient's finger. With this less-invasive alternative to venipuncture blood draws, samples can be collected and prepared by any trained healthcare worker (including those without prior phlebotomy experience).
The latest expansion is expected to significantly boost BD’s Integrated Diagnostic Solutions (IDS) business unit under the broader Life Sciences segment and solidify its foothold in the niche space.
Likely Trend of BDX Stock Following the News
Following the announcement yesterday, shares of the company lost nearly 0.8% till yesterday’s closing.
Historically, the company has gained a top-line boost from its product launches and various partnerships. Although the announcement of the latest expansion of fingertip blood collection and testing technologies is likely to be beneficial for BDX’s top-line growth going forward, the stock declined overall.
BD currently has a market capitalization of $65.24 billion. It has an earnings yield of 6.4%, higher than the industry’s 4.9%. In the last reported quarter, BDX delivered an earnings surprise of 1.1%.
Significance of the Expansion of BD's Testing Technology
Per BD, as the majority of clinical decisions are dependent on diagnostic results, blood tests are a routine part of care to aid clinicians in diagnosing, monitoring and treating patients. The capillary solution will likely enable care providers to improve access to blood testing in underserved locations that lack phlebotomy capabilities while lowering common barriers to testing (such as fear of needles and logistical challenges).
BD’s management believes that simplifying the process of blood collection will make blood testing less invasive and more convenient, helping healthcare organizations increase efficiency and access while improving patient satisfaction and outcomes.
Per Babson's management, its partnership with BD will likely deliver a potentially transformative technology to support innovative and patient-focused healthcare organizations in better accessing and serving patients.
Industry Prospects in Favor of BDX
Per a report by Grand View Research, the global capillary blood collection devices market was estimated at $2.13 billion in 2024 and is anticipated to witness a CAGR of 8.8% between 2025 and 2030. Factors like the increasing prevalence of chronic, infectious and non-communicable diseases and technological innovations in molecular diagnostic tools are likely to drive the market.
Given the market potential, the availability of the blood testing process will likely provide a significant impetus to BD's business.
BD's Notable Developments
Last month, BD reported its fourth-quarter fiscal 2024 results, wherein its Life Sciences segment witnessed a revenue uptick on a reported and organic basis and at a constant exchange rate. The segment was aided by its IDS business unit, whose performance reflected strong growth in Specimen Management driven by broad volume strength and strength in BD MAX IVD and BD COR.
In October, BD announced Health Canada approval of the BD Onclarity HPV Assay for human papillomavirus (HPV) testing for the use with self-collected vaginal specimens at home.
BDX's Share Price Performance
Shares of the company have lost 6.2% in the past year against the industry’s 2.9% rise and the S&P 500's 27.9% growth.
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BD's Zacks Rank & Key Picks
Currently, BDX carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader medical space are Cardinal Health, Inc. CAH, ResMed Inc. RMD and LeMaitre Vascular, Inc. LMAT.
Cardinal Health, carrying a Zacks Rank #2 (Buy) at present, has an estimated long-term growth rate of 10.2%. CAH’s earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 11.2%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Cardinal Health’s shares have gained 14.5% compared with the industry’s 2.9% rise in the past year.
ResMed, carrying a Zacks Rank of 2 at present, has an estimated long-term growth rate of 14.8%. RMD’s earnings surpassed estimates in each of the trailing four quarters, with the average being 6.4%.
ResMed has gained 39.8% compared with the industry’s 12.7% rise in the past year.
LeMaitre Vascular, carrying a Zacks Rank of 2 at present, has an estimated long-term growth rate of 21%. LMAT’s earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 10.1%.
LeMaitre Vascular’s shares have rallied 62.2% compared with the industry’s 12.7% rise in the past year.
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