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BD (BDX) Ties Up With LabCorp to Boost Patient Outcome

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Becton, Dickinson and Company (BDX - Free Report) , popularly known as BD, recently entered into a collaboration with Laboratory Corporation of America Holdings (LH - Free Report) or LabCorp. The tie-up is aimed at creating a framework to develop, manufacture, market and commercialize flow cytometry-based companion diagnostics (CDx) intended to match patients best available treatments for cancer and other diseases.

The agreement is expected to create a framework for BD and LabCorp Drug Development to collaborate on flow cytometry-based CDx opportunities with pharmaceutical partners. Following the tie-up, the two companies will likely bring together capabilities that comprise an end-to-end solution for CDx development for the pharmaceutical industry.

The latest partnership is a significant stepping stone for BD, which is likely to strengthen its foothold in the global flow cytometry-based companion diagnostic space.

Rationale Behind the Collaboration

Presently, selecting the optimal first-line therapy for patients with cancer by using CDx can be critical to ensure the best outcomes for the patients, besides saving time and cost.

Per BD’s management, there is clearly an urgent need for high sensitivity and multiplexing capabilities in the current companion diagnostic space. This is where flow cytometry, which itself is an emerging technology in the field, can come into play. Management also believes that this partnership will pave the way for BD to pursue opportunities within the pharmaceutical industry to develop new CDx that has the potential to improve patient outcomes.

Meanwhile, LabCorp’s management feels that flow cytometry is a reliable and powerful tool for analyzing cells to better understand the disease, which has tremendous untapped potential as a companion diagnostic in oncology and other therapeutic areas. Management also feels that the partnership will ultimately enable both players to introduce innovative new CDx to the market to aid in identifying patients who could benefit from suitable treatments.

Industry Prospects

Per a report by Research and Markets, the global flow cytometry market was valued at $4,942.02 million in 2021 and is anticipated to reach $7,587.63 million by 2027 at a CAGR of approximately 7.5%. Factors like increasing research and development activities in the healthcare industry, growing prevalence of chronic and immunological ailments and cancer due to gene mutations are likely to drive the market.

Given the market potential, the latest collaboration is expected to significantly strengthen BD’s Biosciences business of the broader Life Sciences arm worldwide.

Recent Developments in Life Sciences Arm

This month, BD reported its third-quarter fiscal 2022 results, wherein the company’s Biosciences business unit continued to record strong demand for reagents. This was driven by BD’s antibody and dye strategy and continued adoption of its e-commerce platform.  Strong instrument growth was driven by recent product launches and strategic procurement of critical components that enabled higher instrument placements.

Last month, BD and CerTest Biotec announced their newly developed molecular polymerase chain reaction test for the monkeypox virus had been made commercially available outside of the United States for use in research applications by laboratories. BD announced a partnership with CerTest with the aim of developing a molecular diagnostic test for the monkeypox virus in June.

Also, in July, BD received the CE Mark for the BD MAX Respiratory Viral Panel, the new molecular diagnostic combination test for SARS-CoV-2, Influenza A + B and Respiratory Syncytial Virus from the company.

Comparison With Peers

This month, BD’s peer, Bruker Corporation (BRKR - Free Report) , reported second-quarter 2022 results, wherein the company recorded solid top line driven by robust performances across all geographies and the BSI and BEST businesses. The company delivered robust bookings and backlog growth in the second quarter. Revenue recognition from one gigahertz class NMR system and the continued uptake of the timsTOF platform were Bruker’s added advantages.

Last month, Bruker announced three new customer orders for GHz systems, which will incorporate novel, compact 1.0 GHzNMR magnets for structural biology applications and clinical research in single-story laboratories.

Another renowned name in the flow cytometry space, Thermo Fisher Scientific Inc. (TMO - Free Report) , launched its Applied Biosystems HIV-1 Genotyping Kit with Integrase this month. The kit is a research use only assay that examines positive samples of human immunodeficiency virus to identify genetic variants that resist common antiretrovial therapeutics.

The same month, Thermo Fisher expanded its dry powder media manufacturing facility in Grand Island, NY. TMO expects to meet the increasing global demand for cell culture media used in the manufacturing of new vaccines and biologics via this latest expansion.

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