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BD Stock Up Post Tie-Up to Expand Hazardous Drug Contamination Testing

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Key Takeaways

  • BDX partnered with ChemoGLO to improve hazardous drug contamination testing in healthcare settings.
  • The deal supports growth in BDX's MDS unit by combining rapid testing with in-depth contamination analysis.
  • ChemoGLO expects the joint solution to deliver detailed contamination reports within three to five days.

Yesterday, Becton, Dickinson and Company (BDX - Free Report) , popularly known as BD, announced a collaboration with ChemoGLO, a notable name in hazardous drug detection and decontamination. The partnership is aimed at advancing hazardous drug contamination testing in healthcare settings to improve the safety of healthcare workers.

The latest collaboration is a significant stepping stone for BD to boost its Medication Delivery Solutions (MDS) business unit of the BD Medical segment and strengthen its foothold in the niche space.

Trend of BD Stock Following the News

Following the announcement, shares of the company gained nearly 0.1% till yesterday’s closing.

Historically, the company has gained a high level of synergies from its various deals. We expect market sentiment on the stock to remain positive around this announcement, too.

BD currently has a market capitalization of $55.54 billion. It has an earnings yield of 7.7%, higher than the industry’s 5.8%. In the last reported quarter, BDX delivered an earnings surprise of 1%.

Rationale Behind BDX’s Latest Tie-Up

Per BDX, the collaboration is expected to enable facilities to combine BD HD Check System’s rapid, point-of-care qualitative results with ChemoGLO's liquid chromatography-tandem mass spectrometry analysis and deliver a comprehensive quantitative report on an expanded panel of hazardous drugs within three to five days after receipt of samples.

BD’s management believes that the BD HD Check System will likely allow facilities to rapidly identify potential contamination and, through its collaboration with ChemoGLO, gain deeper insights into exposure risks.

Per ChemoGLO’s management, the partnership with BD is expected to combine speed and precision to help facilities act faster and more confidently to safeguard their teams.

Industry Prospects in Favor of BD

Per a report by Global Market Insights, the global drug screening market is expected to grow from $15.4 billion in 2025 to $52.2 billion in 2034 at a CAGR of 14.5%. Factors like growing concern of substance abuse and growth in stringent policies requirement across various employment sectors are likely to drive the market.

Given the market potential, the latest milestone is expected to provide a significant boost to BD's business.

BDX’s Notable Developments

Last month, BD announced that Duncan Regional Hospital has become the first hospital in the United States to implement BD Alaris EMR (Electronic Medical Record) Interoperability with the MEDITECH electronic health record.

The same month, BD reported its fourth-quarter fiscal 2025 results, wherein its MDS business unit’s performance reflected strong growth led by Vascular Access Management.

BD’s Share Price Performance

Shares of the company have lost 11.1% in the past year against the industry’s 8% rise and the S&P 500’s gain of 15.3%.

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Image Source: Zacks Investment Research

BDX’s Zacks Rank & Key Picks

Currently, BD carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the broader medical space are Solventum Corporation (SOLV - Free Report) , Intuitive Surgical, Inc. (ISRG - Free Report) and Cardinal Health, Inc. (CAH - Free Report) .

Solventum, carrying a Zacks Rank #2 (Buy) at present, has an estimated long-term growth rate of 1.6%. SOLV’s earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 10.4%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Solventum’s shares have gained 21.9% compared with the industry’s 1.4% rise in the past year.

Intuitive Surgical, sporting a Zacks Rank of 1 at present, has an estimated long-term growth rate of 15.7%. ISRG’s earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 16.3%.

Intuitive Surgical has rallied 4.5% against the industry’s 0.4% decline in the past year.

Cardinal Health, carrying a Zacks Rank of 2 at present, has an estimated long-term growth rate of 13.9%. CAH’s earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 9.4%.

Cardinal Health’s shares have gained 62.1% compared with the industry’s 8% growth in the past year.

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