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Becton, Dickinson and Company BDX, also known as BD, recently completed the acquisition of Texas-based TVA Medical. Financial terms of the deal have been kept under wraps.
Post the announcement, shares of BD inched down 0.04% to $244.55.
Per management, the transaction is not expected to be accretive to BD’s financial results in fiscal 2018 or 2019.
In the past year, the company’s shares have rallied 24.5% compared with the industry’s rise of 8.2%.
The stock carries a Zacks Rank #3 (Hold).
Coming back to the news, TVA Medical develops minimally invasive vascular access solutions for patients with chronic kidney disease who require hemodialysis.
The recent integration is likely to boost BD’s core Medical segment. Additionally, the buyout will enable BD to provide TVA’s flagship everlinQ endoAVF system. The everlinQ endoAVF, which received a De Novo marketing clearance from the FDA, is used for hemodialysis without relying on open surgery.
The acquisition will allow BD to serve physicians and patients by providing minimally invasive procedures for patients with chronic kidney disease.
Management opines that there are more than 440,000 patients with End-Stage Renal Disease (ESRD) who depend on hemodialysis in the United States.
Moreover, per research by MarketsandMarkets, the U.S. market for minimally invasive surgical devices is projected to reach $21.47 billion by 2021 from $13.89 billion in 2016, at a CAGR of 9.1%.
Benefits of minimally invasive surgeries compared with traditional open surgeriesa well asreduction in healthcare costs and timedrive growth in the market.
Hence, BD’s latest move is a timely and strategic one.
MedTech’s Minimally-Invasive Breakaway
Minimally-invasive surgery involves fewer incisions to reduce trauma for patients. Of late, the U.S. MedTech space has been witnessing increased usage of the surgical procedure.
BD is one of the major global MedTech players that has been raking huge profits from its minimally invasive procedures. The company’s flagship V. Mueller and Snowden-Pencer laparoscopic instruments are among the most advanced surgical instruments available in the market.
Intuitive Surgical’s ISRG coveted da Vinci platform deserves a special mention here. The system is powered with robotic technology that enables surgeonsto make smaller and precise movements.
Also, Stryker Corporation’s SYK robotic-arm assisted Mako surgery platform facilitates advanced joint replacement surgery solutions.
Want More From the Industry?
A better-ranked stock from the Medical Dental Supplies space is Henry Schein, Inc. HSIC.
Henry Schein's gains in the United States as well as overseas raise optimism. The stock carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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