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BD's (BDX) Rapid COVID-19 Test for US Olympic Trial Swimmers

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Becton, Dickinson and Company (BDX - Free Report) , popularly known as BD, recently partnered with USA Swimming --the national governing body for the sport of swimming in the United States. Under this alliance, the former is going to provide rapid antigen tests using the BD Veritor Plus System at the United States Olympic Team Trials and other competitive swimming events for 2021-2022.

The latest development is expected to bolster BD’s Diagnostic Systems business.

Few Words on Veritor Plus

For investors’ note, BD Veritor Plus provides quick and reliable on-site detection of the SARS-CoV-2 virus causing COVID-19. The results from the test are displayed digitally in 15 minutes. The system has received Emergency Use Authorization (EUA) from the FDA for the sole detection of proteins from SARS-CoV-2 in certain authorized laboratories.

The test will be placed as an additional safety measure above the usual polymerase chain reaction (PCR) tests to supplement USA Swimming’s efforts to prioritize athlete health and safety during the competitive season.

Strategic Significance of the Deal

The U.S. governing body for swimming sports closely follows guidelines from the Centers for Disease Control and Prevention to combat COVID-19 transmission. It is part of the Aquatics Coalition group which is working toward safer return to swimming for athletes amid the pandemic.

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More than 2,000 tests are expected to be administered with the BD Veritor Plus System by Premier Medical Group USA, a third-party provider at the Olympic Team Trials and other competitive events.

Industry Prospect

Per a report published in Grand View Research, the global COVID-19 diagnostics market is set to witness a CAGR of 3.1% from 2021 to 2027. Factors like increasing cases of coronavirus-infections, government initiatives to implement mass testing and integration of COVID-19 tests in routine diagnostic protocols to support majorly affected industries like travel and tourism are among the key factors driving market growth.

Given the substantial market prospects, BD’s range of offerings in the global COVID-19 diagnostic market through antigen and molecular-based diagnostic tests, injection devices for vaccine administration, innovative solutions for immunology research and devices has placed it at the forefront of the COVID-19 response.

Notable Developments

BD announced a number of developments during May 2021.

BD launched Urine Culture Application for the BD Kiestra lab automation incubation and imaging system in the United States. The new application, designed using artificial intelligence and improved BD BBL plated media, provides digital imaging and software algorithms for urine culture analysis. The Urine Culture Application can automatically organize laboratory specimens into worklists based on criteria such as 'high risk patients' or 'complex specimens', thereby improving lab efficiency.

BD launched BD Surgiphor Sterile Wound Irrigation System to aid in mechanical removal of wound debris during surgeries. The BD Surgiphor is a pre-mixed, pre-labeled, single patient surgical wound irrigation solution that uses aqueous povidone-iodine as an antiseptic agent, which is 99.99% proven to combat bacteria within the bottled solution. This enables health care professionals to meet the standard for best practices set by U.S. health agencies to achieve patient safety goals.

BD received CE-IVD mark to use BD Onclarity HPV Assay for self-collection intended for HPV screening. This authorization enables laboratories to process self-collected samples through BD’s diluent tube on either the BD Viper LT or the BD COR System.  Self-collection at-home offers an affordable and reliable cervical cancer screening option for women who have limited access to the same.

Share Price Performance

The stock has underperformed its industry over the past year. It has grown 2.1% compared to the industry’s 28.2% growth.

Zacks Rank and Key Picks

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

A few better-ranked stocks from the Medical-Dental Supplies industry include Henry Schein, Inc. (HSIC - Free Report) , Straumann Holding AG (SAUHF - Free Report) and West Pharmaceutical Services, Inc. (WST - Free Report) , each sporting a Zacks Rank #2 (Buy).

Henry Schein has a long-term earnings growth rate of 11.20%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Straumann has a long-term earnings growth rate of 11%.  

West Pharmaceutical has a long-term earnings growth rate of 25.80%.

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