NEW YORK – Becton Dickinson said Thursday that currency-neutral base revenues in the fiscal third quarter from its BD Life Sciences segment were essentially flat year over year as growth in the BD Biosciences (BDB) business was offset by a decline in COVID-related testing in Integrated Diagnostics Solutions (IDS).
For the three months ended June 30, the Franklin Lakes, New Jersey-headquartered company reported total revenues of $4.88 billion compared to $4.64 billion a year ago, a 5 percent increase as reported or 6 percent on a currency-neutral basis. The company beat the Wall Street revenue estimate of $4.84 billion.
Overall, the company reported 7 percent growth in its base business in Q3 as the Life Sciences segment was buoyed by year-over-year increases in both the BD Medical and BD Interventional segments. The base business grew 8 percent on a currency-neutral basis and 6 percent on a currency-neutral and organic basis, excluding revenue from acquisitions.
BD Life Sciences Q3 revenues were $1.23 billion, a 6 percent decline as reported, with currency-neutral, base revenues ticking up a fraction of a percent. The base business performance reflected high-single-digit growth in BDB that was offset by a decline in IDS revenues due to a comparison to higher prior-year flu/COVID respiratory testing revenues and the impact of US distributor de-stocking in specimen management, BD said.
Within IDS, the tough respiratory testing comparison was partially offset by double-digit growth in the company's microbiology platform driven by continued adoption of the BD Kiestra IdentifA and Total Modular Track products and strong demand for blood culture and pathogen identification/antibiotic susceptibility testing reagents, the company said. In addition, the company saw continued strong growth from molecular in vitro diagnostic assays running on the BD Cor System and the incremental BD Max System installed base.
Growth in the BDB business unit reflected double-digit growth in cancer reagents leveraging the company's growing installed base of FACSLyric analyzers, adoption of FACSDuet sample prep automation, and continued strong growth in research reagents, BD said.
During the quarter, BD announced the worldwide launch of the BD FACSDiscover S8 Cell Sorter, which the company claims is the world's first spectral cell sorter with high-speed, real-time cell imaging. BD also launched the aforementioned BD FACSDuet system, which is designed to automate clinical flow cytometry and improve standardization and reproducibility in cellular diagnostics, the company said.
In addition, during the quarter the company received US Food and Drug Administration 510(k) clearance for the BD Kiestra MRSA imaging application that uses AI to interpret bacterial growth.
Earlier this week, the firm also said that it received FDA 510(k) clearance for its combination COVID-19, influenza A/B, and respiratory syncytial virus molecular test, for which the company had previously garnered FDA Emergency Use Authorization.
Meanwhile, Q3 revenues in the BD Medical segment grew 11 percent as reported or 12 percent on a currency-neutral basis to $2.43 billion, while BD Interventional Revenues grew 7 percent as reported or 8 percent on a currency-neutral basis to $1.22 billion.
BD reported third quarter net income attributable to common shareholders of $392 million, or $1.36 per share, compared to $338 million, or $1.18 per share, a year ago. The firm reported adjusted EPS of $2.96, besting analysts' average estimate of $2.91.
The firm finished fiscal Q3 with $923 million in cash and cash equivalents, $101 million in restricted cash, and $8 million in short-term investments.
The company raised its full-year base organic revenue growth guidance while maintaining its adjusted EPS guidance. BD said it now expects fiscal year 2023 revenues of $19.3 billion compared to a previously announced range of $19.2 billion to $19.3 billion. Base organic revenue growth is now expected to be 5.5 percent to 5.8 percent compared to a prior range of 5.25 percent to 5.75 percent. Its guidance for adjusted EPS of $12.10 to $12.32 is unchanged from its previous forecast.
In midmorning Thursday trading on the New York Stock Exchange, shares of BD were flat at $276.11.