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BD's (BDX) New Tie-Up to Develop Detection Kit for Monkeypox

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Becton, Dickinson and Company (BDX - Free Report) , popularly known as BD, recently announced a partnership with CerTest Biotec. The tie up is aimed at developing a molecular diagnostic test for the monkeypox virus.

It is worth mentioning that as part of the collaboration, the to-be-developed assay will leverage the BD MAX open system reagent suite to validate the CerTest VIASURE Monkeypox CE/IVD molecular test on the BD MAX System. The assay will be available for BD MAX users worldwide and is expected to aid in advancing the understanding of the disease’s global spread.

It should also be noted that, as with all CerTest tests, the Monkeypox PCR (polymerase chain reaction) Detection Kit for the BD MAX System will be offered in a lyophilized (freeze-dried) format. Apart from this, the test will come in a tube that will fit into the test-specific position on the BD MAX ExK TNA extraction strip supplied by BD.

The latest collaboration is expected to significantly strengthen BD’s foothold in the global Integrated Diagnostic Solutions business, which is a part of the broader Life Sciences arm.

Rationale Behind the Tie Up

Per BD’s management, the BD MAX open system reagent suite has been designed to enable labs to speedily respond to unexpected challenges in the evolving health care situations. Management believes that via the latest partnership with CerTest and their capability to rapidly transfer assays on the BD MAX System, the BD MAX System’s global users will be able to access a test for the detection of the monkeypox virus.

CerTest’s management believes that the ability of both partners to rapidly develop molecular assays as well its experience working with the BD MAX System will likely enable it to fast-track the development of an assay and further build its collaboration with BD.

Industry Prospects

Per a report by MarketsandMarkets, the global molecular diagnostics market is anticipated to reach $30.2 billion by 2027 from $23.2 billion in 2022 at a CAGR of 5.4%. Factors like the emergence of new viruses, technological advancements in molecular diagnostics and the growing awareness of early disease diagnosis are likely to drive the market.

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

Notable Developments in Life Sciences Arm

This month, BD announced its plans to unveil a new cell sorting technology — BD FACSDiscover S8 Cell Sorter — at the recently concluded International Society for Advancement of Cytometry CYTO 2022 conference.

Last month, BD announced the U.S. launch of its new, fully automated, high-throughput infectious disease molecular diagnostics platform, BD COR MX instrument. The instrument, which has received the FDA’s 510(k) clearance, is a new analytic instrument option for the BD COR System.

The same month, BD announced the expansion of its strategic partnership with Babson Diagnostics to move blood sample collection into new care settings, including enabling patients to collect blood samples at home for diagnostic testing.

Price Performance

The BD stock has gained 3.9% over the past year against the industry’s 7.7% fall and the S&P 500's 6.6% decline.

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Zacks Rank & Stocks to Consider

Currently, BD carries a Zacks Rank #4 (Sell).

Some better-ranked stocks in the broader medical space are AMN Healthcare Services, Inc. (AMN - Free Report) , HealthEquity, Inc. (HQY - Free Report) and Masimo Corporation (MASI - Free Report) .

AMN Healthcare, carrying a Zacks Rank #2 (Buy) at present, has an estimated long-term growth rate of 1.1%. AMN’s earnings surpassed the Zacks Consensus Estimate in all the trailing four quarters, the average beat being 15.6%.

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

AMN Healthcare has gained 5.2% against the industry’s 64.1% fall in the past year.

HealthEquity, carrying a Zacks Rank #2 at present, has an estimated long-term growth rate of 20.3%. HQY’s earnings surpassed estimates in two of the trailing four quarters and missed the same in the other two, the average beat being 1.4%.

HealthEquity has lost 18.1% compared with the industry’s 64.1% fall over the past year.

Masimo, carrying a Zacks Rank #2 at present, has an earnings yield of 3.3% against the industry’s negative yield. MASI’s earnings surpassed estimates in the trailing four quarters, the average beat being 4.4%.

Masimo has lost 35.9% compared with the industry’s 18.9% fall over the past year.