{"id":179,"date":"2021-05-13T08:23:27","date_gmt":"2021-05-13T08:23:27","guid":{"rendered":"http:\/\/tech3.mypagedemo.com\/cm-plus\/?p=179"},"modified":"2021-05-13T08:23:30","modified_gmt":"2021-05-13T08:23:30","slug":"bd-grows-q2-revenue-despite-covid-19-test-dip-spins-off-diabetes-business","status":"publish","type":"post","link":"https:\/\/tech3.mypagedemo.com\/cm-plus\/bd-grows-q2-revenue-despite-covid-19-test-dip-spins-off-diabetes-business.html","title":{"rendered":"BD grows Q2 revenue despite COVID-19 test dip, spins off diabetes business"},"content":{"rendered":"<h3>Dive Brief:<\/h3>\n<ul>\n<li>Becton Dickinson on Thursday\u00a0<a href=\"https:\/\/investors.bd.com\/news-releases\/news-release-details\/bd-announces-second-fiscal-quarter-results-reaffirms-fiscal-2021\">reported<\/a>\u00a0fiscal second-quarter revenues of\u00a0$4.9 billion,\u00a0an increase of 15.4% over the prior-year period driven by coronavirus testing sales of $480 million, far below Evercore ISI analyst expectations of $550 million.<\/li>\n<li>Resurgences of COVID-19 infections during the quarter in\u00a0the U.S.\u00a0negatively impacted BD&#8217;s surgery and peripheral intervention units. Still, BD\u00a0reiterated its fiscal 2021 guidance and\u00a0expects revenues to grow 12% to 14% on a reported basis for the full year, which assumes no significant change in utilization or procedure volumes related to coronavirus.<\/li>\n<li>BD also\u00a0<a href=\"https:\/\/investors.bd.com\/news-releases\/news-release-details\/bd-announces-intent-spin-diabetes-care-business-enhance-focus\">announced<\/a>\u00a0on Thursday that it will spin off its diabetes care unit, which had fiscal 2020 revenues of $1.1 billion. The transaction for the separate publicly traded company\u00a0is expected to be completed in the first half of calendar year 2022 and will not impact BD&#8217;s ability to fulfill its orders related to vaccinations.<\/li>\n<\/ul>\n<div class=\"hybrid-ad-wrapper hide-small show-large\">\n<div class=\"hybrid-ad-inner-wrapper\">\n<div class=\"hide-small show-large\">\n<div data-container-ad-unit-id=\"\/21662595662\/medtechdive\/medtechdivehybrid2-desktop\"><\/div>\n<\/div>\n<\/div>\n<\/div>\n<h3>Dive Insight:<\/h3>\n<p>BD continues to benefit from\u00a0global sales of syringes relating to COVID-19 vaccination efforts.\u00a0The company&#8217;s medical segment brought in\u00a0second-quarter revenue of $2.3 billion, an increase of 7.4% versus the prior-year period, fueled by medication delivery solutions (MDS) growth.<\/p>\n<p>CFO Chris Reidy\u00a0told investors MDS growth was 8.1%, helped by U.S.\u00a0sales of catheters and medication delivery devices as well as international revenue growth due to a favorable comparison to the prior-year quarter, which was impacted by pandemic-related declines in\u00a0China.<\/p>\n<p>BD&#8217;s interventional segment,\u00a0driven by the surgery and peripheral intervention businesses, reported flat revenue in the second quarter on a currency-neutral basis. However,\u00a0Reidy\u00a0told investors the results were &#8220;better than expected&#8221; given the resurgences of COVID-19 infections during the quarter, adding that the company &#8220;did see recovery in elective procedures as the quarter progressed and this trend has continued into April.&#8221;<\/p>\n<p>On the coronavirus testing front, Reidy\u00a0said COVID-19 diagnostics revenues totaled $480 million, with\u00a0BD&#8217;s Veritor\u00a0Plus rapid antigen test bringing in $290 million.<\/p>\n<p>&#8220;The market&#8217;s overall demand for symptomatic COVID\u00a0diagnostic testing was lower,&#8221; the CFO acknowledged.<\/p>\n<p>SVB Leerink analysts in a Thursday note said BD&#8217;s COVID-19 diagnostic testing underperformed in the quarter which was &#8220;not entirely surprising given other COVID testing players&#8217; results.&#8221;\u00a0Coronavirus-related sales at other diagnostic companies such as\u00a0<a href=\"https:\/\/www.medtechdive.com\/news\/abbott-misses-wall-street-as-covid-19-test-sales-softer-than-expected\/598690\/\">Abbott Laboratories<\/a>\u00a0and\u00a0<a href=\"https:\/\/www.medtechdive.com\/news\/quidel-shakes-wall-street-with-bearish-covid-19-test-forecast\/598934\/\">Quidel<\/a>\u00a0have fallen short of analyst expectations in recent financial updates.<\/p>\n<p>Growth in BD&#8217;s Integrated Diagnostic Solutions unit was &#8220;unfavorably impacted&#8221; by the lack of a traditional influenza season in early 2021. However, CEO Tom Polen\u00a0told investors Thursday that combination COVID-influenza\u00a0tests &#8220;are going to be important in the next flu season.&#8221;<\/p>\n<p>The company\u00a0<a href=\"https:\/\/investors.bd.com\/news-releases\/news-release-details\/bd-announces-fda-emergency-use-authorization-combination-covid\">announced<\/a>\u00a0in late March that it was granted an FDA emergency use authorization for a rapid antigen test that can detect SARS-CoV-2, influenza A and influenza B.<\/p>\n<p>The company last month also\u00a0<a href=\"https:\/\/investors.bd.com\/news-releases\/news-release-details\/bd-receives-emergency-use-authorization-asymptomatic-screening\">received an EUA<\/a>\u00a0for its Veritor Plus rapid antigen test to be used for COVID-19 screening through serial testing of asymptomatic individuals. BD is also continuing to develop an at-home Veritor\u00a0diagnostic that works with smartphones and digitally shares results.<\/p>\n<p>Polen\u00a0over the past year has emphasized that BD&#8217;s\u00a0troubled Alaris\u00a0infusion pump system has been his top priority.\u00a0On Thursday, he touted the fact that BD last week filed a new\u00a0<a href=\"https:\/\/news.bd.com\/2021-04-26-BD-Announces-FDA-510-k-Submission-for-BD-Alaris-TM-System?_ga=2.162349877.82498225.1619439744-1380392708.1609795289\">510(k) submission<\/a>\u00a0for Alaris, which over the past year has been plagued by multiple software and hardware recalls.<\/p>\n<p>The medtech originally planned to file the FDA application by the fourth quarter of 2020, but challenges from the COVID-19 pandemic forced the company to push back the timeline. Polen\u00a0told investors on Thursday that the 510(k) submission is comprehensive,\u00a0bringing Alaris\u00a0up to date for all changes to the pump, including addressing open recall issues through a new version of software that will provide clinical, operational and cybersecurity updates.<\/p>\n<p>&#8220;We believe it would be prudent to think about Alaris&#8217; clearance sometime during the second\u00a0half of our fiscal year 2022,&#8221; the CEO added.<\/p>\n<p>BD reported that second-quarter revenues for its Diabetes Care unit were comparable to the prior-year period, which benefited from increased\u00a0U.S.\u00a0orders from retailers and distributors in response to the COVID-19 pandemic.<\/p>\n<p>Polen\u00a0said that by spinning off BD&#8217;s diabetes unit into a separate public company the medtech\u00a0will be able to leverage its global leadership position in insulin delivery and &#8220;unleash&#8221;\u00a0the market&#8217;s high-growth potential &#8220;through the more efficient allocation&#8221; of capital and by allowing each company to pursue their strategic goals.<\/p>\n<p>&#8220;This transaction allows us to focus on our prioritized core businesses,&#8221; added Polen, who said management expects the spinoff to strengthen its mid-single-digit revenue growth and double-digit total return growth profile.<\/p>\n<p>Devdatt Kurdikar, currently worldwide president of BD Diabetes Care, will become CEO of the spinoff.<\/p>\n<p>SVB Leerink analysts noted that BD&#8217;s diabetes care business has played a &#8220;leading role in driving the adoption of insulin syringes\/pens combined with pen needles as the leading modality for insulin injection.&#8221;\u00a0The analysts also pointed to BD as the &#8220;leading producer&#8221; of diabetes injection devices, making approximately 8 billion injection devices annually and serving about 30 million patients.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Dive Brief: Becton Dickinson on Thursday\u00a0reported\u00a0fiscal second-quarter revenues of\u00a0$4.9 billion,\u00a0an increase of 15.4% over the prior-year period driven by coronavirus testing sales of $480 million, far below Evercore ISI analyst expectations of $550 million. Resurgences of COVID-19 infections during the quarter in\u00a0the U.S.\u00a0negatively impacted BD&#8217;s surgery and peripheral intervention units. Still, BD\u00a0reiterated its fiscal 2021 [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":180,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[1],"tags":[],"featured_image_src":{"landsacpe":["https:\/\/tech3.mypagedemo.com\/cm-plus\/wp-content\/uploads\/2021\/05\/531a41c64692edb462207c9b51d475df.jpg",770,364,false],"list":["https:\/\/tech3.mypagedemo.com\/cm-plus\/wp-content\/uploads\/2021\/05\/531a41c64692edb462207c9b51d475df-463x348.jpg",463,348,true],"medium":["https:\/\/tech3.mypagedemo.com\/cm-plus\/wp-content\/uploads\/2021\/05\/531a41c64692edb462207c9b51d475df-300x142.jpg",300,142,true],"full":["https:\/\/tech3.mypagedemo.com\/cm-plus\/wp-content\/uploads\/2021\/05\/531a41c64692edb462207c9b51d475df.jpg",770,364,false]},"_links":{"self":[{"href":"https:\/\/tech3.mypagedemo.com\/cm-plus\/wp-json\/wp\/v2\/posts\/179"}],"collection":[{"href":"https:\/\/tech3.mypagedemo.com\/cm-plus\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/tech3.mypagedemo.com\/cm-plus\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/tech3.mypagedemo.com\/cm-plus\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/tech3.mypagedemo.com\/cm-plus\/wp-json\/wp\/v2\/comments?post=179"}],"version-history":[{"count":1,"href":"https:\/\/tech3.mypagedemo.com\/cm-plus\/wp-json\/wp\/v2\/posts\/179\/revisions"}],"predecessor-version":[{"id":181,"href":"https:\/\/tech3.mypagedemo.com\/cm-plus\/wp-json\/wp\/v2\/posts\/179\/revisions\/181"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/tech3.mypagedemo.com\/cm-plus\/wp-json\/wp\/v2\/media\/180"}],"wp:attachment":[{"href":"https:\/\/tech3.mypagedemo.com\/cm-plus\/wp-json\/wp\/v2\/media?parent=179"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/tech3.mypagedemo.com\/cm-plus\/wp-json\/wp\/v2\/categories?post=179"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/tech3.mypagedemo.com\/cm-plus\/wp-json\/wp\/v2\/tags?post=179"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}