USA — Becton Dickinson, a leading global medical device maker, has experienced a remarkable surge in its stock value hitting an all-time high after receiving a game-changing U.S. Food and Drug Administration (FDA) clearance for the market return of its drug infusion system, Alaris.
The clearance marks a pivotal moment for the company, allowing it to resume full commercial operations with an enhanced and updated Alaris System, offering a comprehensive and innovative infusion solution.
The company recalled some of the Alaris pumps more than three years ago due to concerns they could lead to quicker or slower than intended – or accidental – delivery of medicine.
With the new 510(k) clearance in hand, Becton Dickinson is set to capitalize on the renewed opportunity to sell its Alaris infusion system, which was previously limited to medical necessity.
This transformative development has been met with enthusiasm from investors, driving Becton Dickinson’s stock price up by 6.1% to an unprecedented high of US$287.32, surpassing its previous record in February 2020.
Tom Polen, the Chairman, CEO, and President of Becton Dickinson, expressed excitement about the prospects of the updated Alaris System.
He highlighted that the new system addresses all open recalls, boasting the latest hardware, an upgraded software version, and vital cybersecurity updates, promising increased safety and efficiency in patient care.
Anticipating the positive impact of the FDA clearance, Becton Dickinson plans to commence shipping the Alaris devices and recognizing revenue in its fiscal year 2024.
While no material incremental revenue contribution is expected in the current fiscal year 2023 ending September 30, the company remains bullish about the long-term potential of its Alaris infusion system.
Beyond its recent stock market triumph, Becton Dickinson’s impressive performance can be attributed to its global prominence as a major player in the medical supplies and equipment industry.
With a market capitalization of approximately US$73.67 billion and a price-to-earnings (P/E) ratio of 48.67, the company stands as an attractive investment prospect.
Moreover, the PEG ratio of 2.11 suggests promising growth prospects, further solidifying Becton Dickinson’s position in the market, according to beststocks.com.
As a renowned corporation, Becton Dickinson specializes in the development, manufacturing, and distribution of a diverse range of medical products, catering to healthcare institutions, physicians, researchers, laboratories, pharmaceutical companies, and the general public worldwide.
Its extensive BD Medical segment offers an array of essential medical supplies, including intravenous catheters, central lines, dialysis catheters, vascular care items, needle-free connectors, drug transfer devices, and much more.
The company’s dedication to safety is evident through its sharps disposal systems, which protect healthcare workers from needlestick injuries.
Furthermore, Becton Dickinson’s product portfolio extends to anesthesia needles, enteral syringes, and trays for surgical procedures, catering to various medical needs.
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