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BD's (BDX) Novel Blood Collection System MiniDraw Gets FDA Nod

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Becton, Dickinson and Company (BDX - Free Report) , popularly known as BD, announced that the FDA granted 510(k) clearance for its novel blood collection device, MiniDraw. This revolutionary device is likely to reshape the landscape of diagnostic testing by offering a less invasive and more convenient method for obtaining lab-quality blood samples.

The FDA clearance for MiniDraw includes low-volume blood collection for crucial tests like lipid panels, selected chemistry tests, and hemoglobin and hematocrit testing. These tests play a vital role in diagnosing and monitoring chronic conditions.

Price Performance

Shares of BDX have lost 8.2% year to date against the industry’s 7.7% growth. The S&P 500 has increased 20.3% in the said time frame.

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Less Invasive, More Convenient: Revolutionizing Blood Collection

The MiniDraw system allows healthcare professionals to obtain lab-quality blood samples through a less invasive fingerstick method, eliminating the need for traditional venous blood draws. The design not only reduces the volume of blood required for testing but also opens up new, more accessible locations for blood collection, including retail pharmacies, broadening access to essential diagnostic testing.

With MiniDraw, blood collection can be seamlessly integrated into physician's offices without the need for specialized phlebotomists. This will not only enhance efficiency but also contribute to improved patient compliance with testing regimens.

By enabling blood collection at non-traditional sites, like local pharmacies, BD aims to promote health equity and accessibility, making preventative care and chronic condition management more attainable.

Partnership With Babson Diagnostics

The collaboration between BD and Babson Diagnostics, announced in 2020 and expanded in May 2022, underscores a commitment to innovation in blood testing. The partnership aims to advance the Babson BetterWay blood testing ecosystem, combining the capabilities of the MiniDraw Collection System with Babson's proprietary automated sample handling and analytical technologies. Together, they offer a game-changing solution that requires only a fraction of the sample volume of traditional methods without compromising on quality or accuracy.

Industry Prospects

Per a report by Allied Market Research, the global vascular access devices market was estimated to be $4.8 billion in 2021 and is anticipated to reach $7.9 billion by 2031 at a CAGR of 5.2%. Factors like prevalence of infectious diseases & non-communicable diseases and an increase in the number of approvals for technologically advanced products are likely to drive the market.

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

Zacks Rank & Stocks to Consider

Currently, BD carries a Zacks Rank #5 (Strong Sell).

Some better-ranked stocks in the broader medical space are DaVita Inc. (DVA - Free Report) , Biodesix (BDSX - Free Report) and Integer Holdings Corporation (ITGR - Free Report) .

DaVita, sporting a Zacks Rank #1 (Strong Buy) at present, has an estimated long-term growth rate of 18.3%. DVA’s earnings surpassed estimates in each of the trailing four quarters, delivering an average surprise of 36.55%. You can see the complete list of today’s Zacks #1 Rank stocks here.

DaVita’s shares have risen 42.7% year to date compared with the industry’s 3.9% growth.

Biodesix, carrying a Zacks Rank #2 (Buy) at present, has an estimated growth rate of 32.3% for 2024. BDSX’s earnings surpassed estimates in three of the trailing four quarters and missed the same in one, delivering an average surprise of 9.76%.

Biodesix’s shares have lost 34.8% year to date compared with the industry’s 9.4% decline.

Integer Holdings, sporting a Zacks Rank of 1 at present, has an estimated long-term growth rate of 15.8%. ITGR’s earnings surpassed estimates in each of the trailing four quarters, delivering an average surprise of 11.9%.

Integer Holdings’ shares have rallied 30.6% year to date against the industry’s 3.5% decline.

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