Becton, Dickinson and Co. (BDX) announced that it received Food and Drug Administration (FDA) approval to market its blood collection device, BD Vacutainer Rapid Serum Tube, in the U.S. Unlike standard tubes, the Serum tubes are ready for analysis in five minutes.
The Serum tube contains a gel additive that speeds up the clotting process, thereby enabling the tube to be put in a centrifuge for analysis five minutes after it is filled. On the other hand, standard tubes require 30 minutes of clotting before they are ready for use.
The new approval would boost demand for Serum tubes that will eventually drive revenues for the BD Diagnostics segment. BD Diagnostics is one of the three Becton’s operating segments that manufacture Serum tubes. Becton’s other two operating segments are: BD Medical and BD Biosciences.
Becton develops, manufactures and markets medical devices, supplies, laboratory equipment and diagnostic products globally. The company is a world leader in safety needle products.
Becton competes with players like Baxter International (BAX), Johnson & Johnson (JNJ) and Abbott Laboratories (ABT), all of which have large resources. However, we believe that the company’s sound business model and product line should weather the current economic turbulence, and would be able to withstanding competitive pressure. Based on the company’s performance in the fiscal third quarter, we have a Neutral recommendation on Becton stock.
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