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Becton Sells 50.1% Stake in Respiratory Business to Apax

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Leading global medical technology company, Becton, Dickinson and Co. (BDX - Free Report) or BD, announced the launch of a JV with Apax Partners, christened Vyaire Medical. The JV would be a standalone, global respiratory solutions company and will have an estimated annual revenue of over $800 million. Becton also sold a 50.1% stake in its Respiratory Solutions business to funds advised by Apax Partners, a private equity firm. The company plans to use net proceeds for share repurchases. BD will retain a 49.9% minority interest in the new company.

The new JV, Vyaire Medical includes all business lines within BD's Respiratory Solutions business. This consists of Ventilation, Respiratory Diagnostics, Vital Signs and AirLife. BD said its Respiratory Solutions facilities will be transferred to the new company, including locations in California, Minnesota, Mexico, Brazil, Germany and China. The new company will employ more than 5,000 associates around the world.

Based in Franklin Lakes, NJ, Becton, Dickinson, popularly known as BD, is a medical technology company engaged principally in the development, manufacture and sale of medical devices, instrument systems and reagents.

An innovative product pipeline is the key growth driver at BD. A huge number of regulatory approvals both in the U.S. and international markets are facilitating expansion of the company’s product portfolio.

The company also has a partnership with Central Admixture Pharmacy Services (CAPS). Under this collaboratyion, BD Intelliport Medication Management System customers will be allowed to buy a portfolio of the frequently used CAPS pre-filled anesthesia syringes.

We believe that such partnerships and collaborations will lend BD a competitive edge and eventually boost its overall results. Although the Zacks Consensus Estimate for the full year remained unchanged at $8.56 over the last seven days, it reflects year-over-year growth of almost 19.6%.

Key Picks

A few notable stocks in the medical product sector are Quidel Corp. (QDEL - Free Report) , NuVasive, Inc. (NUVA - Free Report) and GW Pharmaceuticals plc (GWPH - Free Report) .

Quidel is expected to record earnings growth of 20%, higher than the industry average of 14.8% over the next five years. It has a four-quarter average earning surprise of 59.39%.

NuVasive has a trailing four-quarter average earning surprise of 18.98%. For the past five years, the stock saw a 16.6% earnings growth compared to the industry average of 5%.

GW Pharmaceuticals has a four-quarter average earning surprise of 41.67%.  

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