BD MAX Gets CE Mark For Coronavirus Detection, Shares Up

Becton, Dickinson and Company (NYSE:BDX) , also known as BD, along with CerTest Biotec, recently announced the receipt of CE mark for the VIASURE SARS-CoV-2 real time test adapted for the BD MAX System. Thus, the polymerase chain reaction (PCR) test, used for detecting COVID-19, is now available to clinical laboratories.

Following the release, shares of this Zacks Rank #4 (Sell) company increased 2.8% to $237.31 at close.

For investors’ notice, CerTest Biotec is a Spanish developer and manufacturer of in-vitro diagnostic medical devices.

How Does BD Stand to Gain?

The VIASURE kit is available for use on the BD MAX System. It contains all the components necessary for real-time PCR assay in a stabilized format as well as an internal control to monitor PCR inhibition.

Hence, the latest development is expected to ramp up BD MAX sales in Europe, thereby instilling investors’ optimism in the company. In fact, BD has seen more than 20% growth in BD MAX revenues of late.

Notably, the company recently introduced the COR molecular system, which is also expected to be sold in Europe.

That’s not all. A report by MarketsandMarkets projects the global infectious disease diagnostics market to reach a worth of $19.35 billion in 2022, at a CAGR of 5.6%.

Hence, the latest development has been a well-timed one for BD.

Coronavirus a Rising Global Concern

The United States is currently devastated by the coronavirus outbreak as the number of confirmed cases has already surpassed 1,000, with 31 reported deaths. In fact, the FDA has issued new policies to help diagnostic companies develop and begin to use validated COVID-19 detection tests.

Given the alarming situation, medical technology giants have committed to take swift action for quick detection of the virus.

Notably, QIAGEN (NYSE:QGEN) recently announced that it has shipped its newly-developed QIAstat-Dx Respiratory Panel 2019-nCoV test kit to four hospitals in China for evaluation. The company is also in the process of shipping QIAstat-Dx testing kits to public health institutions in other regions, including Europe, South-East Asia and the Middle East.

Meanwhile, LabCorp (NYSE:LH) announced the availability of LabCorp 2019 Novel Coronavirus test, effective Mar 5.

Price Performance

Over the past year, shares of BD have slipped 5.3% compared with the industry’s 13.5% decline.

A Key Pick

A better-ranked company in the broader medical sector is Stryker Corporation (NYSE:SYK) .

Stryker’s long-term earnings growth is expected at 11.9%. The stock has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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