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BD Stock Falls After Acquisition of Edwards' Critical Care Group
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Becton, Dickinson, and Company (BDX - Free Report) , popularly known as BD, completed its acquisition of Edwards Lifesciences Corporation (EW - Free Report) Critical Care product group, renaming it BD Advanced Patient Monitoring.
BD had announced a $4.2 billion deal to acquire Edwards Lifesciences' Critical Care product group in June. The acquisition strengthens BD’s portfolio of advanced monitoring solutions with AI-enabled clinical decision tools. The acquired business also has a strong innovation pipeline that is poised to drive innovation in healthcare by integrating data from its infusion systems and monitoring technologies. BD Advanced Patient Monitoring will operate under BD’s Medical segment, with Katie Szyman as the worldwide president.
The acquisition will also enhance BD’s portfolio of smart connected care solutions, particularly in advanced patient monitoring technologies. EW’s Critical Care is a leader in hemodynamic monitoring and AI-driven clinical decision tools, serving over 10,000 hospitals globally. With $900 million in 2023 revenues and approximately 4,500 employees, the business should expand BD's innovation potential and global reach.
Shares of BDX were down 2.3% on Sept. 4 following the news.
Significance of the Acquisition for BD
The acquisition positions BD at the forefront of healthcare technology by combining advanced monitoring solutions with AI-driven decision support tools, enhancing patient care in critical environments like operating rooms and ICUs. By integrating Edwards Lifesciences' gold-standard technologies and BD's existing infusion systems, the company is set to explore future innovations in closed-loop hemodynamic monitoring and fluid administration. The move also reflects BD’s broader vision of leveraging AI, robotics, and smart connected care to redefine healthcare delivery.
BD Advanced Patient Monitoring's portfolio features the gold-standard Swan Ganz pulmonary artery catheter, minimally invasive sensors, non-invasive cuffs and tissue oximetry sensors. BD Advanced Patient Monitoring technologies are often used simultaneously with the BD Alaris Infusion System in the operating room or intensive care units. These smart technologies leverage machine learning and AI-based algorithms to provide advanced clinical decision support, helping clinicians assess current and future patient conditions.
More on the Acquisition
The completion of the acquisition is unlikely to have a significant impact on BD's fiscal 2024 guidance, provided with the third-quarter earnings release.
Following the acquisition, BD Advanced Patient Monitoring will function as an independent business unit within BD’s Medical segment. This move aligns with BD's focus on smart connected care solutions. The unit will continue its operations from Irvine, CA.
Market Prospects Favoring BDX
Per a report in Future Market Insights, the global digital patient monitoring systemis estimated to be worth $122.7 billion in 2024. It is anticipated to reach $398.6 billion by 2034 at a CAGR of 12.5%.
The robust growth is likely to be driven by the increasing integration of cutting-edge technologies like AI, machine learning and IoT in healthcare. These technologies enable accurate health assessments and personalized treatment plans by analyzing data from wearable medical devices. This technology-driven approach supports tailored care, such as customized medication schedules and rest periods. The growing demand for accurate, rapid diagnostics further drives the adoption of advanced digital monitoring systems, fostering market growth.
BDX Stock Price Performance
Shares of BD have declined 3.1% year to date against the industry’s 3.5% growth. The S&P 500 has witnessed a 15.8% rise in the same time frame.
Image Source: Zacks Investment Research
Zacks Rank & Key Picks
Currently, BD carries a Zacks Rank #3 (Hold).
Some top-ranked stocks in the broader medical space are Universal Health Services (UHS - Free Report) and Quest Diagnostics (DGX - Free Report) . While Universal Health Services sports a Zacks Rank #1 (Strong Buy), Quest Diagnostics carries a Zacks Rank #2 (Buy) at present.
Universal Health Services has an estimated long-term growth rate of 19%. UHS’ earnings surpassed estimates in each of the trailing four quarters, with the average being 14.58%.
Universal Health Services has gained 41.1% compared with the industry's 34.8% growth year to date.
Quest Diagnostics has an estimated long-term growth rate of 6.20%. DGX’s earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 3.31%.
Quest Diagnostics shares have risen 3.7% year to date compared with the industry’s 10.2% growth.
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BD Stock Falls After Acquisition of Edwards' Critical Care Group
Becton, Dickinson, and Company (BDX - Free Report) , popularly known as BD, completed its acquisition of Edwards Lifesciences Corporation (EW - Free Report) Critical Care product group, renaming it BD Advanced Patient Monitoring.
BD had announced a $4.2 billion deal to acquire Edwards Lifesciences' Critical Care product group in June. The acquisition strengthens BD’s portfolio of advanced monitoring solutions with AI-enabled clinical decision tools. The acquired business also has a strong innovation pipeline that is poised to drive innovation in healthcare by integrating data from its infusion systems and monitoring technologies. BD Advanced Patient Monitoring will operate under BD’s Medical segment, with Katie Szyman as the worldwide president.
The acquisition will also enhance BD’s portfolio of smart connected care solutions, particularly in advanced patient monitoring technologies. EW’s Critical Care is a leader in hemodynamic monitoring and AI-driven clinical decision tools, serving over 10,000 hospitals globally. With $900 million in 2023 revenues and approximately 4,500 employees, the business should expand BD's innovation potential and global reach.
Shares of BDX were down 2.3% on Sept. 4 following the news.
Significance of the Acquisition for BD
The acquisition positions BD at the forefront of healthcare technology by combining advanced monitoring solutions with AI-driven decision support tools, enhancing patient care in critical environments like operating rooms and ICUs. By integrating Edwards Lifesciences' gold-standard technologies and BD's existing infusion systems, the company is set to explore future innovations in closed-loop hemodynamic monitoring and fluid administration. The move also reflects BD’s broader vision of leveraging AI, robotics, and smart connected care to redefine healthcare delivery.
BD Advanced Patient Monitoring's portfolio features the gold-standard Swan Ganz pulmonary artery catheter, minimally invasive sensors, non-invasive cuffs and tissue oximetry sensors. BD Advanced Patient Monitoring technologies are often used simultaneously with the BD Alaris Infusion System in the operating room or intensive care units. These smart technologies leverage machine learning and AI-based algorithms to provide advanced clinical decision support, helping clinicians assess current and future patient conditions.
More on the Acquisition
The completion of the acquisition is unlikely to have a significant impact on BD's fiscal 2024 guidance, provided with the third-quarter earnings release.
Following the acquisition, BD Advanced Patient Monitoring will function as an independent business unit within BD’s Medical segment. This move aligns with BD's focus on smart connected care solutions. The unit will continue its operations from Irvine, CA.
Market Prospects Favoring BDX
Per a report in Future Market Insights, the global digital patient monitoring systemis estimated to be worth $122.7 billion in 2024. It is anticipated to reach $398.6 billion by 2034 at a CAGR of 12.5%.
The robust growth is likely to be driven by the increasing integration of cutting-edge technologies like AI, machine learning and IoT in healthcare. These technologies enable accurate health assessments and personalized treatment plans by analyzing data from wearable medical devices. This technology-driven approach supports tailored care, such as customized medication schedules and rest periods. The growing demand for accurate, rapid diagnostics further drives the adoption of advanced digital monitoring systems, fostering market growth.
BDX Stock Price Performance
Shares of BD have declined 3.1% year to date against the industry’s 3.5% growth. The S&P 500 has witnessed a 15.8% rise in the same time frame.
Image Source: Zacks Investment Research
Zacks Rank & Key Picks
Currently, BD carries a Zacks Rank #3 (Hold).
Some top-ranked stocks in the broader medical space are Universal Health Services (UHS - Free Report) and Quest Diagnostics (DGX - Free Report) . While Universal Health Services sports a Zacks Rank #1 (Strong Buy), Quest Diagnostics carries a Zacks Rank #2 (Buy) at present.
You can see the complete list of today’s Zacks #1 Rank stocks here.
Universal Health Services has an estimated long-term growth rate of 19%. UHS’ earnings surpassed estimates in each of the trailing four quarters, with the average being 14.58%.
Universal Health Services has gained 41.1% compared with the industry's 34.8% growth year to date.
Quest Diagnostics has an estimated long-term growth rate of 6.20%. DGX’s earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 3.31%.
Quest Diagnostics shares have risen 3.7% year to date compared with the industry’s 10.2% growth.