Becton, Dickinson and Company BDX, also known as BD, in collaboration with BioGX Inc., a molecular diagnostic company, recently announced that it has received Emergency Use Authorization (EUA) from the FDA for a new diagnostic test that will help hospitals to screen for COVID-19 on site and obtain results in under three hours.
Notably, the test will run on the BD MAX System, which is a molecular diagnostic platform that is already being utilized by hundreds of laboratories in almost every state across the country. Each unit has the capacity of analyzing hundreds of samples daily.
With the introduction of this test, BD’s Lifesciences segment is likely to receive a boost.
Significance of BD’s New Test Amid COVID-19 Crisis
The new test will enable U.S. hospitals to boost the capacity of an easy-to-use, rapid diagnostic test that can screen patients and health care workers for COVID-19. The tests are anticipated to add capacity of 50,000 tests per week across the nation.
Recently, BD launched new point-of-care test, which can detect antibodies in blood to confirm current or past exposure to coronavirus within 15 minutes. This test and the new molecular diagnostic test are part of the company’s approach to provide choice and access to health care workers when it comes to the right test for the right situation.
BD remains focused on working tirelessly on an antigen test for its point-of-care BD Veritor System that will help in the completion of a full portfolio of COVID-19 tests.
It is important to note here that the test has been authorized exclusively for the detection of Ribonucleic Acid (RNA) from SARS-CoV-2 virus to help in the diagnosis of COVID-19.
Coronavirus Outbreak and Impact
Coronavirus, which was first detected in central China in December, has turned into a full-blown pandemic, and its panoptic impact has left most of the world rattled and shocked. In fact, more than 300,000 people across the United States have been infected with the novel coronavirus, with more than 8,100 losing their lives.
Amid this crisis, some key players have made significant progress with regard to testing in order to check the spread of the pandemic.
Abbott Laboratories (NYSE:ABT) ABT recently announced the receipt of the FDA’s Emergency Use Authorization (EUA) for its molecular point-of-care test, ID NOW COVID-19, for the detection of the novel coronavirus. The test, which is the fastest available molecular point-of-care test available to date, can be used in a variety of healthcare settings like physicians' offices, urgent care clinics and hospital emergency departments. The test will provide positive results within five minutes and negative results in 13 minutes.
Also, PerkinElmer (NYSE:PKI), Inc. PKI, announced that it has received Emergency Use Authorization (EUA) from the FDA for its New Coronavirus RT-PCR (Reverse transcription polymerase chain reaction) test. Clinical laboratories that are certified under Clinical Laboratory Improvement Amendments (CLIA) can start utilizing this test kit to detect SARS-CoV-2 (virus causing COVID-19) immediately. Notably, this test is marketed as an in-vitro diagnostic (IVD) device on basis of fulfilling the requirements of European In Vitro Diagnostic Directive (IVDD). The test kit is now available in over 30 countries worldwide.
Market Prospects
Per a report published on Grand View Research, the global molecular diagnostics market was valued at $9.2 billion in 2019 and is expected to reach $18.2 billion by 2027, witnessing a CAGR of 9% between 2020 and 2027. Factors like technological advancements in molecular diagnostics and the rising prevalence of infectious diseases are likely to drive the market.
Hence, the latest development has been a well-timed one for BD.
Price Performance
Over the past year, shares of this Zacks Rank #3 (Hold) company have lost 9.7% compared with the industry’s decline of 26%.
A Key Pick
A better-ranked stock from the broader medical space is The Cooper Companies, Inc. COO, which currently carries a Zacks Rank of 2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Cooper Companies has a projected long-term earnings growth rate of 10.8%.
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