We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
BD's (BDX) Buyout of Venclose to Improve Patient Outcome
Read MoreHide Full Article
Becton, Dickinson and Company (BDX - Free Report) , popularly known as BD, recently announced its acquisition of Venclose, Inc. However, the terms of the transaction have not been disclosed.
It should be noted that the impacts of this buyout are expected to be immaterial to BD's fiscal 2022 financial results.
For investors’ note, Venclose is a provider of solutions for the treatment of chronic venous insufficiency (“CVI”), which results from malfunctioning valves and can lead to varicose veins (twisted and enlarged veins).
The latest buyout is expected to significantly strengthen BD's existing venous disease portfolio, thereby boosting its Peripheral Intervention arm on a global scale.
Significance of the Buyout
Per current estimates, CVI impacts up to 40% of women and 17% of men in the United States, thereby representing a growing therapeutic need within the healthcare system.
Venclose’s provision of CVI treatment via its innovative Radio Frequency (“RF”) ablation technology platform has been developed for versatility, efficiency and simplicity. It should be noted that RF ablation is the predominant treatment of CVI and is widely accepted by physicians. RF ablation catheters can potentially reduce post-operative pain and bruising in patients, unlike the alternative laser treatment therapy for CVI.
The technology of the Venclose System has been created to aid in providing a patient-centric approach to care.
Per management, the Venclose buyout is expected to enable BD to offer a more robust portfolio of solutions to physicians treating the full range of venous conditions. Further, the Venclose RF Ablation System strategically complements the company’s portfolio of venous disease technologies.
Industry Prospects
Per a report by Allied Market Research, the global varicose vein treatment market was valued at $376.64 million in 2017 and is anticipated to reach $589.06 million by 2025 at a CAGR of 5.7%. Factors like the rising incidence of varicose vein problem, rise in elderly population and technological advancements are likely to drive the market.
Given the market potential, the latest acquisition is expected to significantly strengthen BD’s business worldwide.
Recent Developments
Of late, BD has witnessed a few notable developments across its businesses.
In November, the company reported its fourth quarter of fiscal 2021 results, where it recorded robust overall and segmental revenues.
BD, in October, announced the formation of a public-private partnership with the Biomedical Advanced Research and Development Authority (part of the U.S. Health and Human Services Office of the Assistant Secretary for Preparedness and Response) to support the development of a range of COVID-19 combination diagnostic tests for core laboratories, hospitals and at the point of care.
The same month, the company started shipping the first over-the-counter COVID-19 rapid antigen test to use computer vision technology in a smartphone to interpret testing results.
Price Performance
Shares of the company have gained 3.2% in the past year compared with the industry’s 11.1% rise and the S&P 500 composite’s 23.4% growth.
Image Source: Zacks Investment Research
Zacks Rank & Key Picks
Currently, BD carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader medical space are Chemed Corporation (CHE - Free Report) , Thermo Fisher Scientific Inc. (TMO - Free Report) and AMN Healthcare Services (AMN - Free Report) .
Chemed, carrying a Zacks Rank #2 (Buy), reported third-quarter 2021 adjusted earnings per share (EPS) of $5.06, which beat the Zacks Consensus Estimate by 13.5%. Revenues of $538.7 million outpaced the consensus mark by 1.3%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Chemed has an estimated long-term growth rate of 7.7%. The company surpassed estimates in the trailing four quarters, the average surprise being 5.59%.
Thermo Fisher reported third-quarter 2021 adjusted EPS of $5.76, which surpassed the Zacks Consensus Estimate by 23.3%. Third-quarter revenues of $9.33 billion outpaced the Zacks Consensus Estimate by 12%. It currently carries a Zacks Rank #2.
Thermo Fisher has an estimated long-term growth rate of 14%. The company surpassed estimates in the trailing four quarters, the average surprise being 9.02%.
AMN Healthcare reported third-quarter 2021 adjusted EPS of $1.73, which surpassed the Zacks Consensus Estimate by 29.1%. Third-quarter revenues of $877.8 million outpaced the Zacks Consensus Estimate by 12.3%. It currently sports a Zacks Rank #1.
AMN Healthcare has an estimated long-term growth rate of 16.2%. The company surpassed estimates in the trailing four quarters, the average surprise being 19.51%.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
BD's (BDX) Buyout of Venclose to Improve Patient Outcome
Becton, Dickinson and Company (BDX - Free Report) , popularly known as BD, recently announced its acquisition of Venclose, Inc. However, the terms of the transaction have not been disclosed.
It should be noted that the impacts of this buyout are expected to be immaterial to BD's fiscal 2022 financial results.
For investors’ note, Venclose is a provider of solutions for the treatment of chronic venous insufficiency (“CVI”), which results from malfunctioning valves and can lead to varicose veins (twisted and enlarged veins).
The latest buyout is expected to significantly strengthen BD's existing venous disease portfolio, thereby boosting its Peripheral Intervention arm on a global scale.
Significance of the Buyout
Per current estimates, CVI impacts up to 40% of women and 17% of men in the United States, thereby representing a growing therapeutic need within the healthcare system.
Venclose’s provision of CVI treatment via its innovative Radio Frequency (“RF”) ablation technology platform has been developed for versatility, efficiency and simplicity. It should be noted that RF ablation is the predominant treatment of CVI and is widely accepted by physicians. RF ablation catheters can potentially reduce post-operative pain and bruising in patients, unlike the alternative laser treatment therapy for CVI.
The technology of the Venclose System has been created to aid in providing a patient-centric approach to care.
Per management, the Venclose buyout is expected to enable BD to offer a more robust portfolio of solutions to physicians treating the full range of venous conditions. Further, the Venclose RF Ablation System strategically complements the company’s portfolio of venous disease technologies.
Industry Prospects
Per a report by Allied Market Research, the global varicose vein treatment market was valued at $376.64 million in 2017 and is anticipated to reach $589.06 million by 2025 at a CAGR of 5.7%. Factors like the rising incidence of varicose vein problem, rise in elderly population and technological advancements are likely to drive the market.
Given the market potential, the latest acquisition is expected to significantly strengthen BD’s business worldwide.
Recent Developments
Of late, BD has witnessed a few notable developments across its businesses.
In November, the company reported its fourth quarter of fiscal 2021 results, where it recorded robust overall and segmental revenues.
BD, in October, announced the formation of a public-private partnership with the Biomedical Advanced Research and Development Authority (part of the U.S. Health and Human Services Office of the Assistant Secretary for Preparedness and Response) to support the development of a range of COVID-19 combination diagnostic tests for core laboratories, hospitals and at the point of care.
The same month, the company started shipping the first over-the-counter COVID-19 rapid antigen test to use computer vision technology in a smartphone to interpret testing results.
Price Performance
Shares of the company have gained 3.2% in the past year compared with the industry’s 11.1% rise and the S&P 500 composite’s 23.4% growth.
Image Source: Zacks Investment Research
Zacks Rank & Key Picks
Currently, BD carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader medical space are Chemed Corporation (CHE - Free Report) , Thermo Fisher Scientific Inc. (TMO - Free Report) and AMN Healthcare Services (AMN - Free Report) .
Chemed, carrying a Zacks Rank #2 (Buy), reported third-quarter 2021 adjusted earnings per share (EPS) of $5.06, which beat the Zacks Consensus Estimate by 13.5%. Revenues of $538.7 million outpaced the consensus mark by 1.3%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Chemed has an estimated long-term growth rate of 7.7%. The company surpassed estimates in the trailing four quarters, the average surprise being 5.59%.
Thermo Fisher reported third-quarter 2021 adjusted EPS of $5.76, which surpassed the Zacks Consensus Estimate by 23.3%. Third-quarter revenues of $9.33 billion outpaced the Zacks Consensus Estimate by 12%. It currently carries a Zacks Rank #2.
Thermo Fisher has an estimated long-term growth rate of 14%. The company surpassed estimates in the trailing four quarters, the average surprise being 9.02%.
AMN Healthcare reported third-quarter 2021 adjusted EPS of $1.73, which surpassed the Zacks Consensus Estimate by 29.1%. Third-quarter revenues of $877.8 million outpaced the Zacks Consensus Estimate by 12.3%. It currently sports a Zacks Rank #1.
AMN Healthcare has an estimated long-term growth rate of 16.2%. The company surpassed estimates in the trailing four quarters, the average surprise being 19.51%.