Becton, Dickinson and Company ( BDX Quick Quote BDX - Free Report) , popularly known as BD, recently announced the launch of BD COR System, a new and fully-automated high-throughput diagnostic system utilizing robotics and sample management software algorithms. The latest launch will make the BD Onclarity HPV (human papillomavirus) Assay with extended genotyping for the BD COR System available to high-throughput laboratories that currently process the majority of cervical cancer screening specimens across the United States.
For investors’ note, the BD COR System offers two instruments — BD COR PX instrument (which integrates and automates the sample workflow for diagnostic specimens and assays) and BD COR GX instrument (which automates the BD Onclarity HPV Assay with extended genotyping, specifically).
Since 2019, the BD COR PX/GX System has been in use in Europe via a CE-mark in compliance with the European in vitro diagnostic Medical Devices Directive, and is now approved by the FDA within the United States.
The latest launch is expected to significantly solidify BD’s position in the global Integrated Diagnostic Solutions business, which is a part of the company’s broader Life Sciences segment.
Significance of the Launch
The latest offering from BD is likely to set a new standard in automation for infectious disease molecular testing in core laboratories and other centralized laboratories in the United States.
The BD COR System integrates and automates the entire molecular laboratory workflow. The system is modular and scalable, and has been created to address various requirements in laboratories for expanding molecular testing and increasing test volumes. The system has onboard capacity for reagents and samples that provide six to eight hours of unhindered system processing, thereby eliminating the current need of multiple technologist interactions per shift.
Per management, automation would likely aid labs in enhancing and standardizing the quality of the test results, while addressing the need of improving lab efficiency. Management also believes that the U.S. launch of the BD COR System will allow the company to offer sample processing automation and high-throughput molecular testing to its largest laboratory customers. BD can now offer its U.S. customers a full range of molecular testing and informatics solutions, from acute hospital settings to centralized laboratories, along with its BD MAX System.
Industry Prospects Per a report by Research And Markets published on Insider, the global lab automation for in-vitro diagnostics market was estimated to be $4,315.48 million in 2019 and is anticipated to reach $8,288.33 million by 2027 at a CAGR of 8.5%. Factors like flexibility and adaptability of lab automation systems, digital transformation for laboratories and growing demand for the automated molecular diagnostics testing systems are likely to drive the market.
Given the market potential, the latest launch is expected to significantly strengthen BD’s business worldwide.
Of late, BD has witnessed a few notable developments across its businesses.
The company, this month, announced receipt of the FDA’s Emergency Use Authorization 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.
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.
In August, the company reported impressive third-quarter fiscal 2021 results where its segmental performances, along with solid geographical revenues, were impressive.
Shares of BD have gained 4% in the past year compared with the
industry’s 31.6% growth and the S&P 500's 29.2% rise. Image 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 Quick Quote HSIC - Free Report) , IDEXX Laboratories, Inc. ( IDXX Quick Quote IDXX - Free Report) and Intuitive Surgical, Inc. ( ISRG Quick Quote 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 sports a Zacks Rank #1.