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Becton, Dickinson Ultra-Fine Needle to Improve Diabetic Care

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Becton, Dickinson and Company (BDX - Free Report) , commonly known as BD, recently launched BD Ultra-Fine micro pen needle 6mm x 32G for use with pen injection devices. The needles offer comfortable injection experience, enhancing customer satisfaction. Notably, this device is slated for distribution this month.

BD has widened the needle length options for diabetic people. Interestingly, most insurance plans, including Medicare part D, cover BD Ultra-Fine micro 6mm pen needles. People with diabetes require injecting insulin into the subcutaneous fat of their abdomen, thigh, upper arm or buttocks. With BD’s latest needle, diabetic people are less likely to inject their insulin dose into a muscle accidently.

According to the company, the needles are rigorously tested to ensure performance and maintain high-quality standards.

This medical technology company is consistently trying to improve performance of its Diabetes Care unit under its BD Medical segment. BD saw Diabetes Care revenue growth of 2.7% in the last reported third quarter. We expect BD to see higher growth at the segment in the days ahead.

 

According to a report by bccResearch, the global diabetes market should reach a worth of $155 billion by 2021, at a CAGR of 4.4% from 2016 to 2021. Also, as per a report by Markets And Markets, the global human insulin market is expected to value $39.13 billion by 2020, growing at a CAGR of 8.1% from 2015 to 2020. Considering the huge potential of the market, we believe the latest development is a strategic fit.

Over the last year, BD has outperformed the broader industry in terms of share price. The company has returned 9.7%, comparing favorably with the broader industry’s gain of 8.3%.

Estimate Revision trend

The estimate revision trend has been favorable for the company. For the current year, nine estimates moved north compared with one movement in the opposite direction over the last two months. As a result, the Zacks Consensus Estimate for the full year has increased to $9.46 per share from $9.45.

Zacks Rank & Key Picks

BD carries a Zacks Rank #3 (Hold). A few better-ranked medical stocks are Edwards Lifesciences Corporation (EW - Free Report) , Amedisys, Inc. (AMED - Free Report) and IDEXX Laboratories, Inc. (IDXX - Free Report) . Edwards Lifesciences sports a Zacks Rank #1 (Strong Buy), while Amedisys and IDEXX carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Edwards Lifesciences has a long-term expected earnings growth rate of 15.2%. The stock has rallied roughly 19.8% over the last six months.

Amedisys has a long-term expected earnings growth rate of 18.2%. The stock has gained 2.2% over the last six months.

IDEXX has a long-term expected earnings growth rate of 19.8%. The stock has gained around 6.9% over the last six months.

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