Becton (BDX) Gets FDA 510(k) For New Flow Cytometer System

Leading global medical technology company, Becton, Dickinson and Company (NYSE:BDX) , popularly known as BD, recently announced that it has received 510(k) clearance from the U.S. Food and Drug Administration (FDA). The FDA clearance was for a new flow cytometer system with a leucocount reagent assay used in residual white blood cell enumeration.

Stock Performance

In the last three months, the price performance of BD was encouraging. The stock added 8.60%, comparing favorably with the Zacks classified Medical/Dental Supplies sub-industry’s gain of 5.69%. Also, the stock’s performance compares favorably with the S&P 500’s return of 3.87% over the same time frame. Added to this, a long-term expected earnings growth rate of 9.94% instills confidence in investors.

Despite the bullish price trend, estimate revision for the stock has been quite disappointing. The full year has seen 10 estimates move south over the last two months, compared with no movement in the opposite direction. As a result, the stock dropped a nominal 1% to $9.42 over the same time frame. These mixed sentiments justify the stock’s Zacks Rank #3 (Hold).

More About the Approval

Coming back to the news, the new flow cytometer system provides a simple solution for identifying and counting rWBCs in leucoreduced blood products. This is also compatible with the company’s Leucocount kit and Trucount tubes. We feel the combination of products will appeal to the niche market of blood banks and clinical laboratories for an easy-to-use cell analysis solution to help determine and quantify the presence of residual white blood cells. Also, the fully automated system improves overall lab efficiency and simplifies workflow. Finally, the system offers the performance of a full-function clinical flow cytometer but in a compact design that easily fits on a benchtop or within a hood.

Based in Franklin Lakes, NJ, Becton, Dickinson is a medical technology company engaged principally in the development, manufacture and sale of medical devices, instrument systems and reagents.

Going forward, BD’s focus on product launches is a significant catalyst in our view. Additionally, its expansion plans, especially in the emerging overseas markets and the acquisition-driven strategy hold considerable promise.

On the flipside, lower demand for healthcare products, intensifying competition, significant exposure to foreign exchange volatility and higher debt levels pose major headwinds.

Key Picks

Some better-ranked stocks in the broader medical sector are Inogen Inc. (NASDAQ:INGN) , IDEXX Laboratories, Inc. (NASDAQ:IDXX) and Fluidigm Corporation (NASDAQ:FLDM) . Notably, Inogen and IDEXX Laboratories sport a Zacks Rank #1 (Strong Buy) while Fluidigm carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Inogen has a long-term expected earnings growth rate of 17.50%. Notably, the stock registered an impressive one-year return of 70.6%.

IDEXX Laboratories has a long-term expected earnings growth rate of 15.04%. Additionally, the stock returned an impressive 97.5% in the last one year.

Fluidigm has a long-term expected earnings growth rate of 25%. The stock delivered a positive earnings surprise of 1.6% last quarter.
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