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BD (BDX) Receives FDA EUA for Combination Rapid Antigen Test

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Becton, Dickinson and Company (BDX - Free Report) , popularly known as BD, received emergency use authorization (“EUA”) from the FDA for a new, rapid antigen test, which can simultaneously identify SARS-CoV-2, influenza A and influenza B in a single test.

Interestingly, the new test takes around 15 minutes to run on the BD Veritor Plus System and helps to distinguish between SARS-CoV-2, influenza A and influenza B by offering definitive positive or negative individual display readouts for all three.

For investors’ notice, the BD Veritor System is a little larger than a cell phone, equipped with one-button functionality, workflow flexibility and is simple to use, thereby, making it an ideal solution for settings having no laboratory personnel.

The latest test is expected to be a meaningful addition to BD’s fight against the global pandemic, thus, boosting the company’s Life Sciences business.

Significance of the New Test

It is important to mention here that the symptoms of COVID-19 and the flu are very similar. Therefore, a rapid combination test that can help differentiate between the three viral infections can save time as well as resources. The test is for those individuals, who are suspected of having either of the three viral infections within six days of symptom onset. Notably, BD plans to introduce the test in the summer for the 2021-2022 flu season.

 




The new test mirrors the same, simple workflow as other rapid tests on the BD Veritor Plus System. The company will continue to provide both individual tests for SARS-CoV-2 and influenza A+B along with the new combination tests that can enable healthcare providers to run the test most suitable for their patients.

Industry Prospects

Per a report published on Research And Markets, the global rapid test kit market was valued at $23.44 billion in 2020 and is expected to witness a CAGR of 8.1% by 2026. Factors like the unrelenting spread of the pandemic and the growing prevalence of various infectious diseases are expected to drive the market.

Given the market potential, the announcement seems to have been timed well.

Recent Developments

This month, BD collaborated with ImageMover to provide a companion mobile app, which will aid in a smoother running of SARS-CoV-2 antigen testing results done on the BD Veritor Plus System at regular testing locations (schools and businesses).

The collaboration will help in facilitating test results for streamlined reporting, thereby, resulting in substantially lower manual documentation. Notably, the ImageMover app is readily available for BD Veritor Plus System customers.

In February, the company collaborated with Scanwell Health, a renowned name in smartphone-enabled at-home medical tests. The partnership is aimed at creating an at-home rapid test for SARS-CoV-2 using BD’s antigen test and the Scanwell Health mobile app.

Price Performance

Shares of the company have gained 8.8% in the past year compared with the industry’s growth of 51.3%.

Zacks Rank & Key Picks

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

Some better-ranked stocks from the broader medical space are Surmodics, Inc. (SRDX - Free Report) , IDEXX Laboratories, Inc. (IDXX - Free Report) and Cantel Medical Corp. , each currently carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Surmodics’ long-term earnings growth rate is estimated at 10%.

IDEXX’s long-term earnings growth rate is estimated at 15.8%.

Cantel Medical’s long-term earnings growth rate is estimated at 19%.

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