Back to top

Image: Bigstock

BD's FDA Nod for Phoenix Test Boosts Diagnostic Systems

Read MoreHide Full Article

Becton, Dickinson and Company (BDX - Free Report) , also known as BD, recently announced the FDA 510(k) clearance of its Phoenix CPO detect test. This will allow hospitals to identify infections caused by carbapenemase-producing organisms (CPOs) and help them contain the spread of antimicrobial resistance (AMR). The development will also likely boost BD’s Diagnostic Systems.

Per management, all versions of Phoenix will be available starting January 2019.

More on Phoenix CPO Detect Test

It is a new phenotypic test, representing a significant advance over conventional ones in rapid detection of CPOs. Notably, the test can detect the presence of CPOs in under 36 hours, compared to conventional phenotypic methods which may take up to 96 hours.

It gives laboratories an accurate and cost-effective method to quickly identify CPO-caused infections and support patient management.

This complements BD’s diagnostics portfolio which also boasts BD Phoenix M50, an automated microbiology system used for susceptibility testing.

BD Diagnostic Systems at a Glance

BD Diagnostic Systems provides products and instruments for detecting a broad range of infectious diseases, healthcare-associated infections and cancer.

In the recently reported fourth quarter of fiscal 2018, BD Diagnostic Systems grew 8.2% year over year. It grew 9.6%, from fiscal 2017.

Per management, growth was driven by BD’s instrumented microbiology platforms, TB, and IDAST, strong Kiestra installations and BD MAX molecular platform.

Market Prospects

Research by Market Watch shows that the global infectious disease diagnostics market is expected to exceed more than $21 billion by 2022 at a CAGR of 10%.

Hence BD’s latest development has been a well-timed one.

Price Performance

Over the past year, shares of BD have rallied 6.3% compared with the industry’s rise of 4.2%. The current level is also higher than the S&P 500 index’s increase of 5.6%.

The stock carries a Zacks Rank #3 (Hold).

Key Picks

A few better-ranked stocks in the broader medical space are Stryker Corporation (SYK - Free Report) , Masimo Corporation (MASI - Free Report) and Veeva Systems (VEEV - Free Report) .

Stryker has a long-term expected earnings growth rate of 10% and a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Masimo’s long-term earnings growth rate is projected at 14.6%. The stock carries a Zacks Rank #2.

Veeva Systems’ long-term earnings growth rate is estimated at 19.3%. The stock carries a Zacks Rank #2.

3 Medical Stocks to Buy Now

The greatest discovery in this century of biology is now at the flashpoint between theory and realization. Billions of dollars in research have poured into it. Companies are already generating revenue, and cures for a variety of deadly diseases are in the pipeline.

So are big potential profits for early investors. Zacks has released an updated Special Report that explains this breakthrough and names the best 3 stocks to ride it.

See them today for free >>

Published in