FRANKLIN LAKES, N.J. - BD (Becton, Dickinson and Company) (NYSE: BDX) and Quest Diagnostics (NYSE: NYSE:DGX) have announced a global collaboration to develop flow cytometry-based companion diagnostics (CDx), aimed at enhancing treatment selection for cancer patients and those with other diseases.
This partnership is expected to provide pharmaceutical companies with a comprehensive solution for CDx development, from exploratory panel development to the manufacturing and distribution of diagnostic kits approved by the FDA.
Companion diagnostics are essential tools in personalized medicine, helping to determine the most effective treatment for patients based on their unique biological markers. While current CDx technologies include methods such as immunohistochemistry and next-generation sequencing, flow cytometry offers a new approach by analyzing individual cells to provide insights into a patient's immune response.
The collaboration combines BD's long-standing expertise in flow cytometry with Quest Diagnostics' experience in biomarker development and assay validation. Steve Conly, worldwide president of Biosciences at BD, emphasized the shared commitment to advancing personalized medicine through this technology.
William Finger, Vice President and General Manager of Pharma Services for Quest Diagnostics, highlighted the potential of the partnership to deliver novel CDx solutions that could improve patient outcomes and reduce healthcare costs.
Quest Diagnostics brings its BioPharma services to the table, offering a range of drug development services, including laboratory testing for clinical trials and post-launch surveillance. BD, with a global presence and over 70,000 employees, continues to focus on enhancing medical discovery and the delivery of care.
The announcement of this partnership is based on a press release statement.
In other recent news, Becton, Dickinson, and Company (BD) have shown notable progress in multiple areas. The medical technology firm exceeded its greenhouse gas emissions reduction targets for fiscal year 2023, achieving an 18% reduction in Scope 1 and Scope 2 emissions. This accomplishment aligns with BD's commitment to reach net-zero emissions by 2050.
BD also reported a successful second fiscal quarter in 2024, with robust revenue growth and margin performance. This success was largely attributed to the Alaris system, which saw first-half sales surpass those of the previous fiscal year. The company's recent acquisition of Edwards Lifesciences (NYSE:EW)' Critical Care division for $4.2 billion is expected to enhance BD's portfolio of smart connected care solutions.
Goldman Sachs (NYSE:GS) initiated coverage on BD stock with a Buy rating, anticipating above-market revenue growth driven by new product launches. The investment bank also projected a shift in BD's earnings momentum, leading to a 10% earnings growth through fiscal year 2027.
InvestingPro Insights
In light of BD's (Becton, Dickinson and Company) recent collaboration with Quest Diagnostics to advance flow cytometry-based companion diagnostics, a look at BD's financial position and market sentiment reveals a company with a robust track record and a promising outlook. BD has not only raised its dividend for 53 consecutive years, but it is also expected to see net income growth this year. This information, drawn from InvestingPro Tips, underscores the company's financial stability and potential for continued success in its industry.
From a valuation standpoint, BD's market capitalization stands at $68.59 billion, with a high earnings multiple reflected in a P/E ratio of 52. Adjusted for the last twelve months as of Q2 2024, the P/E ratio is 33.26, which may suggest a premium valuation relative to earnings. However, this could also be indicative of investor confidence in the company's growth prospects and market position. Additionally, BD's revenue growth for the same period was 4.82%, a steady increase that aligns with the company's expansion efforts in the healthcare equipment and supplies sector.
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