Becton, Dickinson and Company BDX, popularly known as BD, recently announced a partnership with Mayo Clinic Platform. The tie-up is aimed at accessing de-identified patient data from Mayo Clinic Platform_Discover to perform detailed post-market surveillance on its products. The latest collaboration is expected to drive innovation, and unlock a faster and more efficient path to market, with the ultimate objective being better patient care.
It is worth mentioning that this tie-up puts BD in the bracket of the first companies that have entered into an innovative tie-up with Mayo Clinic Platform in order to access the latter’s clinical data collection.
The latest collaboration is expected to significantly boost BD’s global business.
Rationale Behind the Tie Up
Mayo Clinic Platform_Discover is an enabling product by Mayo Clinic Platform and represents one of the most solid de-identified data sets available from 10 million patients. This includes images, lab test results, echocardiograms and clinical notes. On the back of various tools and techniques, BD will analyze real-world data to generate deeper insight into patient experience. This is expected to help the company advance and boost innovation around both existing products and unmet needs.
Per BD’s management, randomized control trials have been considered the gold standard in assessing safety and efficacy for medical devices. However, industry and academic experts examining the strict parameters around clinical trials are seeing added value in leveraging insights from real-world data to truly understand whether patients' needs are met.
Leveraging real-world evidence by using datasets, like those from Mayo Clinic Platform, can be effective in understanding the numerous parameters that would not generally be captured in a clinical trial. This, in turn, would aid in understanding patients' care pathways and acknowledge the needs of diverse patients to provide better solutions for improved outcomes and experiences.
Mayo Clinic Platform’s management believes that its next-generation analytical tools and curated de-identified patient data create a dynamic and privacy-protected environment for discovery. This can be useful for companies like BD to derive key insights as they develop solutions for their customers and patients at a faster rate.
Per a report by Data Bridge Market Research, the global medical device vigilance market is expected to reach $89.72 billion by 2028, growing at a CAGR of approximately 6.9% between 2021 and 2028. Factors like increasing launches of recall systems for medical devices and the growing number of post-market surveillance programs for the same are likely to drive the market.
Given the market potential, the latest collaboration is expected to significantly strengthen BD’s business worldwide.
This month, BD announced a partnership with CerTest Biotec, which is aimed at developing a molecular diagnostic test for the monkeypox virus.
Also this month, BD, along with Frazier Healthcare Partners, announced a definitive agreement for the former to acquire Parata Systems for $1.525 billion. The transaction is expected to close by the end of the first half of BD's fiscal year 2023 upon the satisfaction of customary closing conditions, including the receipt of regulatory clearances.
Again, in June, BD announced its plans to unveil a new cell sorting technology — BD FACSDiscover S8 Cell Sorter — at the International Society for Advancement of Cytometry CYTO 2022 conference.
The BD stock has lost 1.7% over the past year compared with the industry’s 13.3% fall and the S&P 500's 12.3% decline.
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Zacks Rank & Key Picks
Currently, BD carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader medical space are AMN Healthcare Services, Inc. AMN, Omnicell, Inc. OMCL and Masimo Corporation MASI.
AMN Healthcare, sporting a Zacks Rank #1 (Strong Buy) at present, has an estimated long-term growth rate of 1.1%. AMN’s earnings surpassed the Zacks Consensus Estimate in all the trailing four quarters, the average beat being 15.6%.
You can see the complete list of today’s Zacks #1 Rank stocks here.
AMN Healthcare has gained 5.1% against the industry’s 53.9% fall in the past year.
Omnicell, carrying a Zacks Rank #2 (Buy) at present, has an estimated long-term growth rate of 20%. OMCL’s earnings surpassed estimates in three of the trailing four quarters and missed the same in the other, the average beat being 13.4%.
Omnicell has lost 23.9% compared with the industry’s 60.8% fall over the past year.
Masimo, carrying a Zacks Rank #2 at present, has an earnings yield of 3.8% against the industry’s negative yield. MASI’s earnings surpassed estimates in the trailing four quarters, the average beat being 4.4%.
Masimo has lost 45.2% compared with the industry’s 30.5% fall over the past year.
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