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BD (BDX) Solidifies Foothold in Healthcare Cybersecurity

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Becton, Dickinson and Company (BDX - Free Report) , popularly known as BD, recently announced that it has been authorized as a Common Vulnerability and Exposures (“CVE”) Numbering Authority via the CVE Program. BD is the first medical technology company with such an authorization.

For investors’ note, the company had launched the BD Cybersecurity Trust Center in 2020, thereby increasing transparency and partnership with its customers. Also in the same year, it issued its inaugural cybersecurity annual report.

It should also be noted that BD was among the first medical technology companies to develop a Coordinated Vulnerability Disclosure program. This allowed its customers to tackle cybersecurity risks via awareness and guidance.

With the latest achievement, BD aims to strengthen its foothold in the global healthcare cybersecurity business.

Few Words on the CVE Program

Currently, the CVE Program is the existing international standard for vulnerability identification and naming. The Program is aimed at boosting international cybersecurity defense by classifying publicly disclosed cybersecurity vulnerabilities.

The CVE Program is sponsored by the U.S. Department of Homeland Security Cybersecurity and Infrastructure Security Agency, and is operated by MITRE Corporation.

Significance of the Authorization

Following the recognition of BD as a CVE Numbering Authority (“CNA”), it is now authorized to assign CVE identification numbers to newly revealed vulnerabilities in its software-enabled products. This includes using the Common Weakness Enumeration system to categorize vulnerability types and applying the Common Vulnerability Scoring System to communicate vulnerability characteristics and severity.

Further, by being an authorized CNA, the company is expected to provide its customers with accurate and timely information about vulnerabilities available, thereby helping them streamline early-stage vulnerability management.

Industry Prospects

Per a report by Market Data Forecast, the global healthcare cybersecurity market was estimated to be $9.2 billion in 2019 and is projected to grow at a CAGR of 17.8% between 2020 and 2025. Factors like rising cases of healthcare cyberattacks and technological developments are likely to drive the market.

Given the market potential, the latest achievement is expected to significantly strengthen BD’s presence across the world.

Recent Developments

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

The company, in May, announced the U.S. launch of a Urine Culture Application for use with the BD Kiestra lab automation incubation and imaging system.

Further this month, BD launched the BD Surgiphor Sterile Wound Irrigation System. It is the first and only ready-to-use aqueous povidone-iodine (PVP-I) irrigation solution currently available in the market which mechanically loosens and removes wound debris.

Also in May, the company announced that the industry's first self-collection claim for HPV screening has received the CE mark. The same month, the company reported impressive fiscal 2021 second-quarter results with solid contribution by its COVID-19 diagnostic revenues.

Price Performance

Shares of the company have lost 2.7% in the past year against the industry’s 19.6% growth and the S&P 500's 33.1% rise.

Zacks Investment ResearchImage Source: Zacks Investment Research

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) , DaVita Inc. (DVA - Free Report) and Veeva Systems Inc. (VEEV - Free Report) , each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Henry Schein’s long-term earnings growth rate is estimated at 11.2%.

DaVita’s long-term earnings growth rate is estimated at 14.4%.

Veeva Systems’ long-term earnings growth rate is estimated at 15.8%.

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