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BD's (BDX) Tie-Up to Offer AI-Based Digital System for Pap Test
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Becton, Dickinson and Company (BDX - Free Report) , popularly known as BD, recently announced a strategic collaboration agreement with Techcyte. The tie-up aims to offer an artificial intelligence (AI)-based algorithm that guides cytologists and pathologists to efficiently and effectively identify evidence of cervical cancer and pre-cancer using whole-slide imaging.
The Techcyte platform is compatible with liquid-based cytology preparations, including BD SurePath Liquid-based Pap Test vial. It also aims to be compatible with several of the most-used whole-slide imagers currently available in the market.
The Techcyte system is CE-marked for clinical use in Europe. Techcyte, a well-known name in AI-based digital diagnostics, intends to seek the FDA’s approval for clinical use and CE certification to the IVDR (In Vitro Diagnostic Regulation).
The BD and Techcyte IVDD solution will be commercially available in Europe in the first half of 2024. The availability in the United States is subject to the FDA’s approval for clinical use.
The latest partnership is expected to significantly strengthen BD’s foothold in the global Integrated Diagnostic Solutions business, which is part of its broader Life Sciences arm.
Rationale Behind the Collaboration
Per BD’s estimates, cervical cancer proves to be fatal to more than 340,000 women annually globally. It is also the fourth most-frequently observed cancer in women. However, BD believes that its high mortality rate could be reduced via a comprehensive approach that includes effective screening.
BD also believes that although the guidance within healthcare is shifting to recommending human papillomavirus (HPV) screening as the primary test for cervical cancer, Pap tests will likely continue to play an important diagnostic role. This is so because programs are currently transitioning to the new standard of care and looking for pre-cancer and cancer when a high-risk HPV infection is detected.
The agreement is expected to allow BD to deliver a complete solution that aims to reduce the potential for human error and enable greater throughput, so that labs can achieve their results with greater standardization, reproducibility and efficiency from a Pap test (also known as a Pap smear).
Per BD’s management, the solution will likely address the shortage of expert cytologists by leveraging new AI-based digital technology to make the testing process efficient and upgrade the traditional Pap test.
Techcyte’s management believes that its digital workflow, supported by an AI-based algorithm, will likely aid lab professionals in delivering consistent results for their patients.
Industry Prospects
Per a report by MarketsandMarkets, the global HPV testing and Pap test market was valued at $4.9 billion in 2022 and is anticipated to reach $9.2 billion by 2027 at a CAGR of 13.2%. Factors like the increased focus on cervical cancer and rising HPV cases are likely to drive the market.
Given the market potential, the latest association is expected to significantly strengthen BD’s business worldwide.
Recent Developments in Life Sciences Arm
This month, BD announced a collaboration agreement with Hamilton to develop automated applications together with robotics-compatible reagent kits to enable greater standardization and reduce human error when conducting large-scale single-cell multiomics experiments.
Last month, BD received the FDA’s 510(k) clearances for the BD MiniDraw Capillary Blood Collection System.
In November 2023, BD reported its fourth-quarter fiscal 2023 financial results, wherein it registered solid top-line and bottom-line results, along with improvements in the overall base revenues. Robust growth in the Life Sciences segment’s base business and both geographic regions was recorded. Strength in BD’s Life Sciences segment’s business units during the reported quarter was also seen.
Price Performance
Shares of BD have lost 7.1% in the past year against the industry’s 8.3% rise and the S&P 500's 20% growth.
Image Source: Zacks Investment Research
Zacks Rank & Stocks to Consider
Currently, BD carries a Zacks Rank #4 (Sell).
Some better-ranked stocks in the broader medical space are DaVita Inc. (DVA - Free Report) , Merit Medical Systems, Inc. (MMSI - Free Report) and Integer Holdings Corporation (ITGR - Free Report) .
DaVita, sporting a Zacks Rank #2 (Buy), has an estimated long-term growth rate of 17.3%. DVA’s earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 36.6%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
DaVita’s shares have gained 26.8% compared with the industry’s 3.9% rise in the past year.
Merit Medical, carrying a Zacks Rank of 2 at present, has an estimated long-term growth rate of 11.5%. MMSI’s earnings surpassed estimates in each of the trailing four quarters, with the average being 14.4%.
Merit Medical has gained 9.9% compared with the industry’s 8.3% rise in the past year.
Integer Holdings, carrying a Zacks Rank of 2 at present, has an estimated long-term growth rate of 15%. ITGR’s earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 11.9%.
Integer Holdings’ shares have rallied 48.7% compared with the industry’s 1.4% rise in the past year.
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BD's (BDX) Tie-Up to Offer AI-Based Digital System for Pap Test
Becton, Dickinson and Company (BDX - Free Report) , popularly known as BD, recently announced a strategic collaboration agreement with Techcyte. The tie-up aims to offer an artificial intelligence (AI)-based algorithm that guides cytologists and pathologists to efficiently and effectively identify evidence of cervical cancer and pre-cancer using whole-slide imaging.
The Techcyte platform is compatible with liquid-based cytology preparations, including BD SurePath Liquid-based Pap Test vial. It also aims to be compatible with several of the most-used whole-slide imagers currently available in the market.
The Techcyte system is CE-marked for clinical use in Europe. Techcyte, a well-known name in AI-based digital diagnostics, intends to seek the FDA’s approval for clinical use and CE certification to the IVDR (In Vitro Diagnostic Regulation).
The BD and Techcyte IVDD solution will be commercially available in Europe in the first half of 2024. The availability in the United States is subject to the FDA’s approval for clinical use.
The latest partnership is expected to significantly strengthen BD’s foothold in the global Integrated Diagnostic Solutions business, which is part of its broader Life Sciences arm.
Rationale Behind the Collaboration
Per BD’s estimates, cervical cancer proves to be fatal to more than 340,000 women annually globally. It is also the fourth most-frequently observed cancer in women. However, BD believes that its high mortality rate could be reduced via a comprehensive approach that includes effective screening.
BD also believes that although the guidance within healthcare is shifting to recommending human papillomavirus (HPV) screening as the primary test for cervical cancer, Pap tests will likely continue to play an important diagnostic role. This is so because programs are currently transitioning to the new standard of care and looking for pre-cancer and cancer when a high-risk HPV infection is detected.
The agreement is expected to allow BD to deliver a complete solution that aims to reduce the potential for human error and enable greater throughput, so that labs can achieve their results with greater standardization, reproducibility and efficiency from a Pap test (also known as a Pap smear).
Per BD’s management, the solution will likely address the shortage of expert cytologists by leveraging new AI-based digital technology to make the testing process efficient and upgrade the traditional Pap test.
Techcyte’s management believes that its digital workflow, supported by an AI-based algorithm, will likely aid lab professionals in delivering consistent results for their patients.
Industry Prospects
Per a report by MarketsandMarkets, the global HPV testing and Pap test market was valued at $4.9 billion in 2022 and is anticipated to reach $9.2 billion by 2027 at a CAGR of 13.2%. Factors like the increased focus on cervical cancer and rising HPV cases are likely to drive the market.
Given the market potential, the latest association is expected to significantly strengthen BD’s business worldwide.
Recent Developments in Life Sciences Arm
This month, BD announced a collaboration agreement with Hamilton to develop automated applications together with robotics-compatible reagent kits to enable greater standardization and reduce human error when conducting large-scale single-cell multiomics experiments.
Last month, BD received the FDA’s 510(k) clearances for the BD MiniDraw Capillary Blood Collection System.
In November 2023, BD reported its fourth-quarter fiscal 2023 financial results, wherein it registered solid top-line and bottom-line results, along with improvements in the overall base revenues. Robust growth in the Life Sciences segment’s base business and both geographic regions was recorded. Strength in BD’s Life Sciences segment’s business units during the reported quarter was also seen.
Price Performance
Shares of BD have lost 7.1% in the past year against the industry’s 8.3% rise and the S&P 500's 20% growth.
Image Source: Zacks Investment Research
Zacks Rank & Stocks to Consider
Currently, BD carries a Zacks Rank #4 (Sell).
Some better-ranked stocks in the broader medical space are DaVita Inc. (DVA - Free Report) , Merit Medical Systems, Inc. (MMSI - Free Report) and Integer Holdings Corporation (ITGR - Free Report) .
DaVita, sporting a Zacks Rank #2 (Buy), has an estimated long-term growth rate of 17.3%. DVA’s earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 36.6%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
DaVita’s shares have gained 26.8% compared with the industry’s 3.9% rise in the past year.
Merit Medical, carrying a Zacks Rank of 2 at present, has an estimated long-term growth rate of 11.5%. MMSI’s earnings surpassed estimates in each of the trailing four quarters, with the average being 14.4%.
Merit Medical has gained 9.9% compared with the industry’s 8.3% rise in the past year.
Integer Holdings, carrying a Zacks Rank of 2 at present, has an estimated long-term growth rate of 15%. ITGR’s earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 11.9%.
Integer Holdings’ shares have rallied 48.7% compared with the industry’s 1.4% rise in the past year.