BD Reports – Sometimes boring is good!
This morning Becton Dickinson (NYSE:BDX) reported results for their first fiscal quarter. As Diabetic Investor reported previously BD was likely to benefit from the growing use of insulin as a therapy option. Today Edward J. Ludwig, Chairman and Chief Executive Officer stated; "BD is off to a solid start to fiscal 2009. In particular, we continue to see strength in our Biosciences and Diagnostics segments and strong sales of insulin delivery products."
Diabetic Investor looks for this trend to continue as more physicians prescribe injectable therapy options for their growing base of type 2 patients. Besides increased usage of insulin physicians are also taking a closer a look at other injectable therapy options such as Byetta. As Diabetic Investor reported yesterday besides Byetta, physicians will likely have another GLP-1 option before the year is over when liraglutide from Novo Nordisk (NYSE:NVO) comes to market.
Provided there is no hick up with either Byetta or liraglutide, GLP-1 therapy could become the dominate treatment option for type 2 diabetes given the concern over weight and cardiovascular risk profile of competing type 2 therapy options. Roche also has a long acting GLP-1 in their pipeline which like Byetta and liraglutide is delivered via injection. Lastly for all the talk about the possibility of a non-injectable GLP-1 it’s highly unlikely this will occur anytime in the near future.
If BD has an Achilles heel it may be the growing use of pens as the preferred delivery device, in particular pre-filled disposable pens. Unlike the syringe market where BD holds a dominate position, the pen needle market is more competitive. Given the current economic situation and the growing popularity of pens it stands to reason that co or off branded pen needles would be preferred to more expensive branded products. Still Diabetic Investor wouldn’t count BD out of this market given their vast experience in the insulin delivery market and strong formulary position.
The business of syringes and pen needles may not be that sexy or exciting but as we see by today’s results it can be a strong contributor to a company’s bottom line. Sometimes boring is good.
