Becton, Dickinson and Company BDX, popularly known as BD, recently announced the first patient treated under an Investigational Device Exemption, aiming to secure FDA Premarket Approval for its GalaFLEX LITE Scaffold. The trial focuses on evaluating the scaffold's ability to reduce the recurrence of capsular contracture (“CC”) in breast revision surgeries.

By advancing this innovative solution, BD is working to address unmet needs in breast reconstruction procedures. The trial reflects the company’s commitment to developing advanced surgical materials that can improve patient recovery, safety and satisfaction.

Likely Trend of the BDX Stock Following the News

Following the announcement, shares of the company closed flat at $230.23 on Friday. In the past six months, BDX’s shares have lost 2.8% compared with the industry’s 2.8% growth. The S&P 500 lost 0.8% in the same time frame.

However, this news could boost the BDX stock in the long run as this shows the company is innovating in a growing surgical market. If the GalaFLEX LITE scaffold proves successful, it can lead to higher demand from surgeons and hospitals seeking better patient outcomes in breast surgeries. This could open up a new revenue stream, strengthen BD’s position in advanced surgical materials and improve profitability over time, all of which can positively influence investor confidence and the stock price.

Meanwhile, BDX currently has a market capitalization of $66.11 billion. The company delivered an earnings surprise of 15.1% in the last reported quarter.

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Details on BDX’s STANCE Study

Implant-based breast surgeries are among the most common plastic surgeries in the United States, with CC being the leading complication, affecting 10% to 20% of patients. CC occurs when scar tissue around the implant hardens, causing pain and implant displacement, often requiring revision surgery with a high risk of recurrence.

BD’s pivotal STANCE study evaluates whether the bioabsorbable GalaFLEX LITE Scaffold can reduce CC recurrence and implant malposition compared with standard revision surgery without a supportive matrix. The randomized, multi-center trial will enroll at least 250 patients across 40 sites, with a 2:1 ratio of patients receiving the scaffold versus standard care, aiming to demonstrate its safety and effectiveness in improving surgical outcomes.

More on BD’s GalaFLEX LITE Scaffold

GalaFLEX LITE Scaffold is an advanced, bioabsorbable surgical mesh, which is designed to provide temporary support to soft tissue during the healing process. Made from P4HB, a naturally derived polymer, the scaffold gradually dissolves in the body over time, leaving behind strengthened, regenerated tissue. It is specifically engineered to be lightweight yet strong, offering the necessary reinforcement without adding long-term foreign material.

In breast implant revision surgeries, the GalaFLEX LITE Scaffold is used to help prevent complications like CC and implant malposition by supporting tissue integration and reducing mechanical stress. Its bioabsorbable nature minimizes long-term risks and eliminates the need for additional procedures to remove the scaffold, making the mesh an innovative solution in the field of reconstructive and aesthetic surgery.

BDX’s Zacks Rank & Stocks to Consider

BDX carries a Zacks Rank #3 (Hold) at present.

Some better-ranked stocks in the broader medical space are Masimo MASI, Boston Scientific BSX and Cardinal Health CAH. At present, Masimo sports a Zacks Rank #1 (Strong Buy), whereas Boston Scientific and Cardinal Health carries a Zacks Rank #2 (Buy) each. You can see the complete list of today’s Zacks #1 Rank stocks here.

Masimo’s shares have rallied 30.1% in the past year. Estimates for MASI’s 2024 earnings per share (EPS) have increased 1.2% to $4.10 in the past 30 days. MASI’s earnings beat estimates in each of the trailing four quarters, the average surprise being 17.1%. In the last reported quarter, it posted an earnings surprise of 16.6%.

Estimates for Boston Scientific’s 2025 EPS have jumped 2.9% to $2.85 in the past 30 days. Shares of the company have surged 56.7% in the past year compared with the industry’s growth of 12.5%. BSX’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 8.25%. In the last reported quarter, it delivered an earnings surprise of 7.69%.

Estimates for Cardinal Health’s fiscal 2025 EPS have increased 1.5% to $7.94 in the past 30 days. Shares of the company have gained 15.2% in the past year against the industry’s 4.1% decline. CAH’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 9.6%. In the last reported quarter, it delivered an earnings surprise of 10.3%.

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This article originally published on Zacks Investment Research (zacks.com).

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