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BDX Stock Declines Despite Launching BD IO Vascular Access System

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Becton, Dickinson and Company (BDX - Free Report) , popularly known as BD, recently launched the new BD Intraosseous (IO) Vascular Access System.

The BD IO system is likely to enable access to rapid delivery of fluids or medication in critical emergency situations. The procedure involves inserting a needle into the bone marrow cavity when intravenous (IV) access is challenging or delayed.

Likely Trend of BDX Stock Following the News

Following the announcement, shares of the company moved nearly 1.3% south to $233.6 at yesterday’s close. For the past six months, BDX shares have lost 2.1% compared with the industry’s decline of 3.7%. The S&P 500 increased 12.5% in the same time frame.

Meanwhile, BDX currently has a market capitalization of $68.39 billion. In the last reported quarter, BDX delivered an earnings surprise of 5.7%.

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More on BDX’s IO System

Intraosseous infusion is the procedure of injecting fluids, blood products, and medications directly into the bone marrow. The intraosseous infusion devices allow for the administered fluids and medications to go completely into the vascular system. The IO route of medication and fluid is an alternative to the intravascular route. These devices are utilized when a patient's intravenous access is damaged, and they require an urgent administration of life-saving drugs and fluids.

IO access provides a non-collapsible, stable space for the safe administration of any medication or fluids that can also be administered through an IV. IO placement is considered a relatively safe procedure, with a significantly less chance of serious complications. In critical situations, such as patients with low or no palpable blood pressure, the placement of an IO is more to be successfully placed compared to placement of a peripheral IV or central venous catheter.

The BD IO System can quickly provide access to the circulatory system for adult and pediatric patients and is built for rapid intervention in varied emergent care environments.  The BD IO System is the only IO device on the market that can be placed after the extension set is attached and the only one with integrated passive needle tip safety designed to protect care providers and patients against needlestick injuries.

Clinicians can choose from five different needle lengths to serve a wide range of patients and stabilize the device on the curves of the surrounding anatomy using the BD IO System. In contrast to competing drills that are not rechargeable, the BD IO System’s powered driver's rechargeable battery allows it to last up to 12 times longer than other devices on the market. With its special multi-light battery indicator, physicians can be sure the drill is powered for the surgery because it gives an instant indication of battery status.

Favorable Industry Prospects for BDX

Per a reportby Grand View Research, the global intraosseous infusion devices market size was valued at $920.3 million in 2023 and is expected to grow at a CAGR of 25.2% from 2024 to 2030.

Factors that are driving the market growth are the increase in the prevalence of chronic diseases, a rise in number of emergency care cases and surge in incidence of conditions such as serious burns, severe accidents, cardiovascular ailments, which fuel the hospitalization chances.

BDX’s Notable Developments 

In October, BD announced the commercial launch of the first in a family of high-throughput, robotics-compatible reagent kits, BD OMICS-One XT Library Preparation Reagent Kits. The automated solution from the BD and Hamilton collaboration will likely enable automation to ensure greater consistency and increased efficiency of large-scale, single-cell discovery studies.

In September, the company announced the commercial release of the BD Neopak XtraFlow Glass Prefillable Syringe and the latest capacity expansion of the BD Neopak Glass Prefillable Syringe platform to serve the growing market for biologic therapies.

On the third quarter of fiscal 2024 earnings call in August, management stated that the company recently launched the next-generation female external catheter, PureWick Flex. Management also confirmed that BD is currently gearing up for the launch of the next-generation Pyxis in the second half of next year.

BDX’s Zacks Rank & Other Stocks to Consider

BDX carries a Zacks Rank #2 (Buy) at present.

Some other top-ranked stocks in the broader medical space are Addus HomeCare (ADUS - Free Report) ,  Quest Diagnostics (DGX - Free Report)  and RadNet (RDNT - Free Report) . While Addus HomeCare sports a Zacks Rank #1 (Strong Buy), Quest Diagnostics and RadNet carry a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Addus HomeCare has an estimated long-term growth rate of 12.1%. ADUS’ earnings surpassed estimates in each of the trailing four quarters, with the average being 11.5%.

Addus HomeCare shares have rallied 85.5% compared with the industry's 16.9% growth year to date.

Quest Diagnostics has an estimated long-term growth rate of 6.8%. DGX's earnings surpassed estimates in each of the trailing four quarters, with the average being 3.3%.

Quest Diagnostics has gained 42% compared with the industry's 14.9% growth year to date.

RadNet’s earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 98.2%.

RDNT's shares have surged 93.7% year to date compared with the industry’s 14.8% growth.

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