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BD (BDX) Veritor At-Home COVID-19 Test Receives EUA From FDA

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Becton, Dickinson and Company (BDX - Free Report) , popularly known as BD, recently announced receipt of the FDA’s Emergency Use Authorization (“EUA”) for the BD Veritor At-Home COVID-19 Test. The test is an over-the-counter rapid antigen test that utilizes the Scanwell Health mobile app to deliver reliable results in 15 minutes.

For investor’s note, the test is the first at-home COVID-19 rapid antigen test to use computer vision technology in a smartphone to interpret and deliver a digital display of testing results.

The BD Veritor At-Home COVID-19 Test has been developed so that people above the age of 14 years can perform the test from their homes using Scanwell Health's app to receive clear digital results in a few minutes. The test can also be used for children as young as two years old with adult assistance for sample collection. At first, the test will be made available to businesses, schools and governments seeking to offer a self-testing option to their employees or students.

The latest regulatory approval is expected to significantly solidify BD’s position in the global Integrated Diagnostic Solutions business. The business is a part of the broader Life Sciences arm of the company.

Significance of the Approval

BD’s new rapid, digitally-read, lateral flow antigen self-test is expected to make COVID-19 testing faster and easier for people. The option of completing the test in the privacy and safety of one’s home is an added advantage.

The BD Veritor At-Home COVID-19 Test will use a simple, pain-free nasal swab and an easy-to-use mobile app by Scanwell Health that delivers fast and reliable results. The app is available on iOS and Android, and provides simple instructions regarding sample collection. The mobile device's camera is then used to capture, analyze and interpret the results, thus eliminating the human subjectivity of a visually-read test. Per management, rising cases of COVID-19 from the Delta variant have boosted the demand for at-home testing. The BD Veritor At-Home COVID-19 Test, being an easy-to-use test with definitive digital results, is ideal for use in the home setting. New directives from governments and businesses are requiring the need for periodic testing for those who cannot or chose not to be vaccinated. Thus, this new test is likely to help businesses, governments or schools fulfill those necessities.

Industry Prospects

Per a report by Data Bridge Market Research published on GlobeNewswire, the global at-home testing kits market is expected to reach $8,154.74 million by 2028 with the CAGR of 5.3% between 2021 and 2028. Factors like growing health awareness among people, as well as convenience and rapid results are likely to drive the market.

Given the market potential, the latest EUA is expected to significantly strengthen BD’s business worldwide.

Recent Developments

Of late, BD has witnessed a few notable developments across its businesses.

The company, this month, launched BD COR System, a new and fully automated high-throughput diagnostic system using robotics and sample management software algorithms. This is expected to make the BD Onclarity HPV (human papillomavirus) Assay with extended genotyping for the BD COR System available to high-throughput labs that process the majority of cervical cancer screening specimens in the United States.

Also this month, BD announced the launch of a new benchtop cell analyzer, BD FACSymphony A1 Cell Analyzer. The fluorescence-activated cell analyzer is expected to equip laboratories of all sizes with sophisticated flow cytometry capabilities.

Again, in August, the company reported impressive third-quarter fiscal 2021 results where its segmental performances, along with solid geographical revenues, were impressive.

Price Performance

Shares of BD have gained 0.2% in the past year compared with the industry’s 29.9% growth and the S&P 500's 30.1% rise.

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Zacks Rank & Key Picks

Currently, BD carries a Zacks Rank #3 (Hold).

Some better-ranked stocks from the broader medical space are Henry Schein, Inc. (HSIC - Free Report) , IDEXX Laboratories, Inc. (IDXX - Free Report) and Intuitive Surgical, Inc. (ISRG - Free Report) .

Henry Schein’s long-term earnings growth rate is estimated at 13.9%. The company presently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

IDEXX’s long-term earnings growth rate is estimated at 19.9%. It currently has a Zacks Rank #2.

Intuitive Surgical’s long-term earnings growth rate is estimated at 9.7%. It currently carries a Zacks Rank #2.

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