Becton, Dickinson and Company ( BDX Quick Quote BDX - Free Report) , popularly known as BD, recently announced that it has increased its manufacturing capacity and domestic supply via its latest Nebraska-based manufacturing capacity. The latest facility is expected to bolster the U.S. government's access to safety injection devices.
For investors’ note, the new syringe and needle manufacturing lines represent the public-private partnership between BD and the Department of Health and Human Services' Assistant Secretary for Preparedness and Response (“ASPR”). In fact, in July 2020, ASPR's Biomedical Advanced Research and Development Authority had invested approximately $42 million in a $70-million capital project to further expand BD's operations and manufacturing lines in Holdrege, NE.
The latest addition to BD’s syringe and needle manufacturing line is expected to significantly strengthen its foothold in the niche space across the world.
Significance of the Latest Addition
The new manufacturing lines is expected to contribute to BD's existing needle and syringe supply capabilities domestically. This latest addition marks a significant manufacturing milestone for the company as the United States prepares to head into the flu vaccination season, where the critical requirement for these essential devices continues.
Per management, the unrelenting spread of the pandemic has highlighted the need to secure the nation's supply continuity of these critical injection devices. Hence, BD is expecting to uphold its commitment to ensure that all of its customers, including the U.S. government, have the supplies required to vaccinate against the COVID-19 virus and simultaneously manage routine preventative health care needs, such as the seasonal flu.
The addition to domestic manufacturing is also likely to meet patients’ and health care providers’ needs as well as create employment in the United States. BD is also working toward ensuring that the global community is prepared for future pandemic vaccination.
Industry Prospects Per a report by HNY Research published on Business Growth Reports, the global syringes and needles market was valued at $1156.53 million in 2020 and is anticipated to grow at a CAGR of approximately 4.2% between 2020 and 2027. Factors like high adoption of prefilled needles, increasing prevalence of diabetics and rising incidence of trauma cases are likely to drive the market.
Given the market potential, the latest facility addition is expected to significantly strengthen BD’s business worldwide.
Of late, BD has witnessed a few notable developments across its businesses.
This month, the company received the FDA’s 510(k) clearance for expanded indications for the Rotarex Atherectomy System.
In August, BD announced the launch of BD COR System, a new and fully-automated high-throughput diagnostic system utilizing robotics and sample management software algorithms.
The same month, the company announced receipt of the FDA’s Emergency Use Authorization (“EUA”) for the BD Veritor At-Home COVID-19 Test. The test is an over-the-counter rapid antigen test that utilizes the Scanwell Health mobile app to deliver reliable results in 15 minutes.
Comparison With Peers
PerkinElmer, Inc. ( PKI Quick Quote PKI - Free Report) , this month, announced that the FDA has issued an EUA for the PKamp Respiratory SARS-CoV-2 RT-PCR Panel 1 assay. The single-test assay can immediately be utilized by qualified laboratories for the simultaneous qualitative detection and differentiation of SARS-CoV-2, influenza A, influenza B and respiratory syncytial virus isolated from nasopharyngeal swabs, anterior nasal swabs and mid-turbinate swabs.
Another key peer of BD,
Hologic, Inc. ( HOLX Quick Quote HOLX - Free Report) , announced its broad European launch of the Novodiag system — a fully automated molecular diagnostic solution for on-demand testing of infectious diseases and antimicrobial resistance — this month. Quidel Corporation ( QDEL Quick Quote QDEL - Free Report) , another key player in the fight against the pandemic, announced in early September that it will make its non-prescription QuickVue At-Home OTC COVID-19 Test available to consumers soon.