Becton, Dickinson and Company BDX, more commonly known as BD, recently announced the receipt of FDA clearance for two Vertebral Balloon Systems (VBS). Notably, the products are developed by CareFusion, which was taken over by BD in Mar 2015. BD expects to fully roll out the products within a year.
The new products are 13-gauge AVAmax VBS and 11-gauge AVAflex VBS. The spine augmentation devices are designed to reduce and stabilize spinal fractures and consequently offer instant and extended respite from pain.
The balloon of the new 13-gauge AVAmax VBS will be the smallest straight-line vertebral balloon. It will be available in lengths of 10mm, 15mm and 20mm. Meanwhile, the 11-gauge AVAflex VBS will be the smallest curved balloon in the market with the advantage of a smaller access point.
According to a research report by MarketsandMarkets, the global spinal implants and spinal devices market is projected to reach a valuation of nearly $15.73 billion by 2020. Hence we believe BD’s continued focus on launching innovative spinal products will help the company gain a stronger foothold in a growing market.
However, it must be noted that one of BD’s peers, Medtronic MDT has a significant presence in the market. The company’s KYPHON Express II Balloon Kyphoplasty Platform (launched in 2014) is also used to treat patients suffering from painful vertebral compression fractures.
We note that the CareFusion takeover has opened up significant opportunities for BD. The company recently rolled out an intravenous (IV) medication management solution, which incorporates technologies from CareFusion. The solution will reduce uncalled for errors associated with IV medication.
Zacks Rank & Stocks to Consider
Currently, BD carries a Zacks Rank #3 (Hold). Better-ranked stocks in the medical sector are Masimo MASI and Natus Medical BABY. Both the stocks sport a Zacks Rank #1 (Strong Buy).
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