In a bid to strengthen its Medical Management Solutions (MMS) segment, Becton, Dickinson and Company (BDX - Free Report) , popularly known as BD, recently collaborated with Indiana-based Helmer Scientific to introduce a refrigerated solution using BD’s new Pyxis ES refrigerator. Notably, the solution is the first of its kind that has been integrated into an automated dispensing system.
Post the announcement, the New Jersey-based medical technology company’s share price dropped a marginal 0.3% to $227.72. However, in the past three months, BD rallied an impressive 3.9%, significantly outperforming the industry’s decline of 0.6%. We believe such favorable developments will provide cushion to the stock.
Notably, Helmer Scientific offers secure medical grade refrigerator, freezer and blood bank storage for clinics, labs, pharmacies, hospitals, research centers and universities.
The stock currently carries a Zacks Rank #3 (Hold).
MMS in Focus
The Pyxis ES system is a significant contributor to MMS. The platform provides automated medication dispensing systems supporting decentralized medication management.
Revenues in the last reported quarter grew 0.5% at the MMS unit. Per management, the upside was driven by strong Pyxis ES adoption in the United States as well as international growth.
Coming back to the news, notifications from the BD Pyxis ES can be seen on the BD HealthSight viewer platform, a unique combination of connective technologies, analytics and expert services.
The Helmer Access Technology along with the new BD Pyxis ES refrigerator provides storage for refrigerated medications that require temperature monitoring.
Per research by MarketsandMarkets, the global medication management systems market, which was expected to reach a value of $845.1 million by 2014, is poised see a CAGR of 13% to 15% in the 2014 to 2019 period.
Hence it can be concluded that BD’s move has been a timely and strategic one.
A few better-ranked stocks in the broader medical space are Abiomed, Inc. (ABMD - Free Report) , Varian Medical (VAR - Free Report) and Intuitive Surgical Inc. (ISRG - Free Report) .
Abiomed has an expected long-term earnings growth rate of 27%. The stock sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Intuitive Surgical has an expected long-term earnings growth rate of 12.1%. The stock sports a Zacks Rank #1.
Varian Medical has a projected long-term earnings growth rate of 8%. The stock carries a Zacks Rank #1.
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