BD sees continued success via launch of diabetes-based products on market

November 22, 2016 – 6:25 PM | By Omar Ford | No comments yet

By Omar Ford, Staff Writer

Becton Dickinson & Co. (BD) is developing a wearable insulin patch pump, which would help the Franklin Lakes, N.J.-based company expand its $1 billion diabetes care division. The device would take BD’s current diabetes offerings beyond insulin syringes, pen needles and lancets. Last week, the company revealed the product during analyst day. BD said it hopes to launch its insulin patch pump for patients with type 2 diabetes in its 2018 fiscal year.

Diabetes continues to be a huge burden and a growing market. The company said that direct medical costs from diabetes are more than $600 billion world, with more than 415 million patients.

“We recognize that as a condition there are huge opportunities for improvement in terms of the care and compliance[for diabetes],” said Tom Polen, executive vice president, medical for BD. “In fact, two-thirds almost of diabetes patients using insulin are not within glycemic control. There is a big opportunity for us as we see ahead, particularly around insulin delivery devices connected as smart devices into a digital health ecosystem.”

BD’s insulin patch pump will feature adjustable basal and bolus insulin rates and will be small enough to fit in the palm of a patient’s hand. However, BD won’t be the first company to offer such a product. Other companies with these devices include Insulet Corp., Unilife Corp., and Valeritas Inc.

In addition, BD plans to launch a new pen needle product each year through 2021.

MOVEMENT IN THE SPACE

Diabetes management and treatment has become a strong market opportunity for health care companies. The diabetes device monitoring and treatment market is expected to reach about $35.5 billion by the year 2024, according to data from Grand View Research Inc. The space offers up a tremendous amount of opportunity and promise for companies.

Recently, Google’s former life sciences division, Verily, along with Paris-based, Sanofi SA, put up $500 million to launch Onduo, a Cambridge, Mass.-based company focused on combining devices with services to tackle diabetes. (See Medical Device Daily, Sept. 13, 2016.)

If Onduo is successful, it could help support Sanofi’s diabetes business, which managed to score about $7 billion in sales last year.

September was perhaps the biggest month for movement in the diabetes treatment and management market fueled by a couple of FDA approvals.

In late September, Dublin-based Medtronic plc. obtained an FDA approval for its Minimed 670g hybrid closed loop system designed to adjust insulin levels with little or no input from the user by measuring glucose levels every five minutes (See Medical Device Daily, Sept. 29, 2016.)

Just prior to the artificial pancreas receiving the nod from the FDA, Abbott Laboratories Freestyle Libre Pro CGM gained approval. While Abbott’s nod from the FDA is for a device that will only be used by doctors, rather than patients, as a way of spotting patterns and trends within a patient’s glucose levels.

Rick Wise, an analyst with Stifel Financial Corp. said that BD’s patch pump will help it remain relevant in the ever-changing space.

“The patch pump launch will potentially position BD in a market undergoing significant, rapid change as multiple large and small companies compete to provide more automated, less burdensome management solutions to more than 400 million diabetic patients, Wise said.

The first visible signs of BD seeking a stronger position in the market can be traced back to a partnership with Medtronic that began last year. The two revealed collaboration to introduce a new insulin pump infusion set with BD Flowsmart technology. (See Medical Device Daily, June 9, 2015.) Medtronic will sell the infusion set, while BD will manufacture the product. During its analyst day, BD said the Minimed Pro-Set launched on a limited basis this year but will move into full global commercialization next year.

LIFE AFTER CAREFUSION ACQUISITION

BD has been moving upward in all of its business segments since it acquired San Diego-based Carefusion Inc. for $12.2 billion two years ago. (See Medical Device Daily, Oct. 7, 2014.)

The combination of the two companies’ complementary product portfolios offered integrated medication management solutions and smart devices, from drug preparation in the pharmacy, to dispensing on the hospital floor, administration to the patient and subsequent monitoring.

During BD’s analyst day, the company laid-out initial plans for FY17 to FY19 targeting baseline organic revenue growth of 5 percent “plus” and earnings per share growth of 10 percent “plus.” Analyst said this would be a positive step-up from fiscal year 2017 revenue growth guidance of 4.5 to 5 percent highlight management’s optimism that growth could accelerate in fiscal year 2018 and beyond.

“We believe management did an excellent job articulating how the strategic transformation and investments made over the past few years translate to 5 percent plus and 10 percent plus of annual revenue and earnings per share growth, respectively, through 2019,” said Doug Schenkel, an analyst with Cowan & Co. LLC. “Importantly, we note that management is focused on delivering strong growth beyond 2019 as well.”

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