Medical technology major, Becton, Dickinson and Company (BDX - Analyst Report) inked an agreement for the installation of its BD Cato Workflow Solution in The University of Texas MD Anderson Cancer Center. The center will be the first healthcare institution in the U.S. to put the BD Cato System into practice. It will incorporate the system into its outpatient infusion pharmacies, including community-based locations.
BD Cato Workflow Solution is an integrated software system that draws on barcode technology and gravimetric verification to enhance patient safety and optimize workflow efficiency in medication preparation. The system is one of the several products available under the company’s BD Pharmacy Solutions.
This innovative system can help detect wrong drug dosages in real time, thus preventing potential medical errors and avoid associated costs. BD Cato Workflow Solution also assists in managing drug remnants, optimizing drug utilization and reducing drug wastage.
By means of an automated documentation feature, BD Cato Workflow Solution supports standardized practice, simplified workflow and increased efficiency from medication preparation to delivery in pharmacies. In addition, the system interfaces with Pharmacy IT systems to pull in physician orders and allows dose queue management within the preparation environment, thereby enhancing patient safety and outcome.
In March last year, Becton, Dickinson acquired Austria-based Cato Software Solutions, the manufacturer of cato and chemocato softwares, a suite of comprehensive medication safety solutions. This transaction reflects the company’s continued focus on reducing medication errors and improving workflow efficiencies.
The issue of medication errors is one of the top concerns on the minds of healthcare providers today. With the implementation of the BD Cato Workflow Solution, Becton, Dickinson intends to ensure that a patient receives the right medication in the right dose.
Becton, Dickinson reported a 10.1% rise in fiscal 2014-second-quarter adjusted earnings per share to $1.53, beating the Zacks Consensus Estimate by 3 cents. Revenues in the quarter grew 3.6% (or 5.1% in constant currency) to $2,072 million, driven by strong performance in the Medical segment and continued improvement in the Biosciences segment. Revenues, however, fell shy of the Zacks Consensus Estimate of $2,094 million.
For fiscal 2014, Becton, Dickinson raised its adjusted earnings per share guidance to the range of $6.22 to $6.25 from the prior range of $6.19 to $6.22. The revised earnings guidance represents year-over-year growth of 7.0–7.5%.
On a foreign currency-neutral basis, adjusted earnings per share are expected to grow between 10.0 and 10.5%, or 11.0 and 11.5% excluding the incremental impact of the medical device tax. The current Zacks Consensus Estimate of $6.25 coincides with the upper-end of the guided range.
Becton, Dickinson continues to expect revenue growth in the range of 4.0 to 5.0% for fiscal 2014. In constant currency, revenue growth is expected between 4.5 and 5.0%.
Currently, Becton, Dickinson carries a Zacks Rank #3 (Hold). Better-ranked stocks in the medical/dental supply industry include Milestone Scientific Inc. , Steris Corp. (STE - Analyst Report), and West Pharmaceutical Services, Inc. (WST - Snapshot Report). All these stocks carry a Zacks Rank #2 (Buy).