Author: Roboticulized.com

• Third fiscal quarter revenues of $4.9 billion grew 26.9% on a reported basis. On a currency-neutral basis, revenues increased 22.0%.
• BD’s COVID-19 testing revenues were $300 million, including BD Veritor Plus System revenues of $212 million.
• Third fiscal quarter GAAP diluted earnings per share (EPS) increased 77.3% year-over-year to $1.72.
• Adjusted diluted EPS increased 24.5% year-over-year to $2.74.
• Citing the base business momentum, BD raised its fiscal 2021 revenue growth and adjusted EPS guidance ranges.

BD (Becton, Dickinson and Company) (NYSE: BDX), a leading global medical technology company, today reported quarterly revenues of $4.9 billion for the third fiscal quarter ended June 30, 2021. This represents a year-over-year increase of 26.9% on a reported basis and 22.0% on a currency-neutral basis. The increase is primarily driven by the strong base business performance as overall healthcare utilization levels continued to recover from the initial impact of COVID-19.

“Our strong third quarter results reflect continued momentum across our base business,” said Tom Polen, Chairman, CEO and President of BD. “Solid execution by our teams has strengthened our foundation, while increased investment in R&D and tuck-in M&A are enhancing our innovation pipeline. We look forward to updating you on our innovation-driven BD 2025 strategy, which leverages our core strengths and market leadership positions to deliver long-term growth and value for all stakeholders at our Investor Day on November 12.”

Third Fiscal Quarter 2021 Operating Results
As reported, diluted EPS for the third fiscal quarter were $1.72, compared with $0.97 in the prior-year period, which represents an increase of 77.3%.  Adjusted diluted EPS were $2.74, compared with $2.20 in the prior-year period, which represents an increase of 24.5%, or 25.9% on a currency-neutral basis.

Segment Results
Third fiscal quarter revenue growth across the segments was primarily driven by strong base business performances as overall healthcare utilization levels continued to recover from the initial impact of COVID-19.

BD Medical revenues for the third fiscal quarter of $2.4 billion increased 11.9% over the prior-year period on a reported basis and 7.7% on a currency-neutral basis.  BD Medical revenues reflect growth in the Medication Delivery Solutions, Pharmaceutical Systems and Diabetes Care units, which was partially offset by an expected decline in the Medication Management Solutions unit.  Medication Delivery Solutions revenue growth reflects strong demand in the U.S. for catheters and vascular care products, as well as strong global demand for syringes resulting from COVID-19 vaccination efforts.  In Medication Management Solutions, revenue growth in dispensing was more than offset by the expected decline in infusion solutions sales due to a global surge in demand for infusion pumps in the prior period driven by the COVID-19 pandemic.  Diabetes Care revenue growth benefited from an easy comparison to the prior year, the timing of revenues, and slightly better than expected market demand. Pharmaceutical Systems revenues reflect continued strong demand for prefillable products.

BD Life Sciences revenues for the third fiscal quarter of $1.4 billion, increased 50.7% over the prior-year period on a reported basis, and 43.4% on a currency-neutral basis. Integrated Diagnostic Solutions (IDS) revenue growth included $300 million in sales related to COVID-19 diagnostic testing on the BD Veritor^TM Plus and BD Max^TM Systems versus $98 million in the prior year. IDS revenue growth reflects a continued recovery in demand for specimen management products and microbiology. Biosciences revenue growth  reflects continued strong demand for instruments and research reagents.

BD Interventional revenues for the third fiscal quarter of $1.1 billion increased 38.4% over the prior-year period on a reported basis and 34.6% on a currency-neutral basis with growth in all three business units. Performance in Surgery and Peripheral Intervention reflects a continued recovery in elective volumes versus the prior-year period. Urology and Critical Care growth was driven by continued strong demand for acute urology products and the unit’s targeted temperature management portfolio.

Geographic Results
U.S. revenues of $2.6 billion increased 21.5% over the prior-year period. Revenues outside of the U.S. of $2.3 billion increased 33.5% over the prior-year period on a reported basis and 22.6% on a currency-neutral basis.

Capital Allocation
BD is committed to a balanced capital allocation strategy that includes both organic investments and tuck-in acquisitions, a competitive dividend, and share repurchases, while maintaining full investment grade credit ratings.

During the third quarter of fiscal year 2021, BD repurchased approximately 4.1 million shares at a total cost of $1.0 billion, or an average cost of approximately $242 per share.

Recent Business Highlights
BD continues to advance an innovation-driven growth strategy. Highlights include:

• In late July, BD announced the remediation for the February 4, 2020 BD Alaris System recall through a new version of software, software version 12.1.2 and associated ancillary software, to remediate the affected software; however, this software update has not been reviewed or cleared by the FDA. Customers can begin scheduling remediation immediately at no cost.
• BD hit a milestone for orders totaling 2 billion injection devices in support of global COVID-19 vaccination efforts, now supplying more than 40 countries for pandemic vaccination campaigns.
• BD announced an industry-first CE marked assay for HPV Screening from at-home self-collected vaginal samples.
• The company announced plans to build a new €165 million manufacturing facility in Zaragoza, Spain to support ongoing strong growth of its pre-filled drug delivery business.
• BD launched an industry first ready-to-use iodine-based surgical irrigation system.
• The company leveraged artificial intelligence to transform microbiology urine testing.
• BD advanced its leadership in cybersecurity preparedness and transparency, becoming the first medical technology company authorized as a Common Vulnerability and Exposures (CVE®) Numbering Authority.
• BD announces expanded 510(k) clearance for its at-home system for ascites. BD’s PeritX Peritoneal Catheter System is the first and only at-home system indicated for malignant and non-malignant ascites drainage in the United States.
• The company launched a reimagined digital marketplace for flow cytometry. The new online portal effectively aggregates, customizes and streamlines purchasing of essential reagents to accelerate bold research and clinical innovation.

Recent Tuck-In Acquisition Strategy Highlights

• BD announced the acquisition of Velano Vascular, adding an innovative needle-free blood draw technology to reduce pain and discomfort of multiple needlesticks. Through the acquisition of Velano Vascular, BD has taken a large step forward in transforming the patient experience through a vision of a “One-Stick Hospital Stay.”
• BD announced the acquisition of Tepha, Inc. Tepha’s proprietary resorbable polymer technology platform has the additional innovation potential to accelerate the growth of BD’s surgical mesh portfolio and drive the company into potential new areas within soft tissue repair, reconstruction and regeneration. We believe the acquisition of Tepha also provides strategic vertical integration of an important supply chain component for BD’s existing Phasix Mesh products.
• BD acquired ZebraSci, a pharmaceutical services company that expands BD’s Pharmaceutical Systems business beyond injectable device design and manufacturing to include best-in-class testing for drug-device combination products.

Recent Environmental, Social and Governance Highlights
As a purpose-driven company working to create positive societal impact, BD has a long-standing commitment to Advancing the World of Health by expanding access to quality health care and supporting healthy and resilient communities throughout the world. We view sustainability as a portfolio of complementary initiatives and actions that help us achieve our long-term goals.

• BD highlighted its five-year environmental, social and governance (ESG) achievements in its 2020 Sustainability Report, setting the foundation for the company’s 2030+ strategy. For further information, visit https://www.bd.com/en-us/company/sustainability-at-bd.
• BD was named a 2021 DiversityInc Noteworthy Company for the second consecutive year, in recognition of hiring, retaining and promoting women, minorities, people with disabilities, LGBTQ+ and veterans.
• BD was named a Best Place to Work for Disability Inclusion for the third year in a row, earning a score of 90 on the Disability Equality Index® (DEI), the nation’s most comprehensive annual benchmarking tool measuring tangible actions towards disability inclusion and equality.
• As part of the company’s Responsible Sourcing program, BD launched its updated Expectations for Suppliers document, which outlines specific standards for suppliers regarding social responsibility, environmental stewardship, ethical practices, human rights and governance.

Assumptions and Outlook for Full Year Fiscal 2021
BD has updated its outlook for fiscal 2021 which reflects numerous assumptions about many factors that could affect its business based on the information management has reviewed as of this date, which includes observations and assumptions regarding the continued impact of the COVID-19 pandemic. The company’s outlook continues to assume no major system-wide hospital restrictions on elective procedures related to the COVID-19 pandemic. However, in recent weeks the company started to see some impact on elective procedures from the COVID-19 delta variant in some states in the U.S. and assumes some continuation of this in its outlook. Management will discuss its outlook and several of its assumptions on its third fiscal quarter earnings call.

The company now expects fiscal year 2021 revenues to grow approximately 16.5% to 17.0% on a reported basis, an increase from the prior guidance of 12% to 14%. Foreign currency is now expected to contribute approximately 250 to 300 basis points to revenue growth, compared to 200 basis points previously. BD now expects fiscal year 2021 currency-neutral revenue growth of about 14.0% versus its prior guidance of 10% to 12%.

The company now expects fiscal year 2021 adjusted diluted EPS to be between $12.85 and $12.95, an increase from the prior guidance of between $12.75 and $12.85. The current adjusted EPS guidance range represents growth of approximately 26% to 27% over fiscal 2020 adjusted diluted EPS of $10.20. The company now expects the impact to adjusted EPS from foreign currency to be negligible, compared to a contribution of approximately 100 basis points previously. The company previously expected adjusted EPS growth of 25% to 26%, or 24% to 25% on a currency-neutral basis.

“We were very pleased to be able to raise our full year 2021 adjusted diluted EPS guidance,” said Christopher Reidy, BD’s EVP, chief financial officer and chief administrative officer. “The positive momentum of our base business, combined with a lower tax rate, allows us to continue to reinvest while overcoming lower COVID-19 testing profit contribution.”

Adjusted diluted EPS for fiscal 2021 excludes potential charges or gains that may be recorded during the fiscal year, such as, among other things, the non-cash amortization of intangible assets, acquisition-related charges, spin-off related charges, and certain tax matters. BD does not attempt to provide reconciliations of forward-looking non-GAAP EPS guidance to the comparable GAAP measure because the impact and timing of these potential charges or gains is inherently uncertain and difficult to predict and is unavailable without unreasonable efforts.  In addition, the company believes such reconciliations would imply a degree of precision and certainty that could be confusing to investors.  Such items could have a substantial impact on GAAP measures of BD’s financial performance.

Conference Call and Presentation Materials
A conference call regarding BD’s third quarter results will be broadcast live on BD’s website, www.bd.com/investors at 8:00 a.m. (ET) Thursday, August 5, 2021.  The accompanying slides will be available on BD’s website, www.bd.com/investors at 6:00 a.m. (ET).  The conference call will be available for replay on BD’s website, www.bd.com/investors, or at 1-855-859-2056 (domestic) and 1-404-537-3406 (international) through the close of business on Thursday, August 12, 2021, confirmation number 9447085.

Non-GAAP Financial Measures/Financial Tables
This news release contains certain non-GAAP financial measures. These include revenue growth rates on a currency-neutral basis and adjusted diluted earnings per share.  These non-GAAP financial measures are not in accordance with generally accepted accounting principles in the United States. BD management believes that the use of non-GAAP measures to adjust for items that are considered by management to be outside of BD’s underlying operational results or that affect period to period comparability helps investors to gain a better understanding of our performance year-over-year, to analyze underlying trends in our businesses, to analyze our base operating results, and understand future prospects. Management uses these non-GAAP financial measures to measure and forecast the company’s performance, especially when comparing such results to previous periods or forecasts. We believe presenting such adjusted metrics provides investors with greater transparency to the information used by BD management for its operational decision-making and for comparison for other companies within the medical technology industry. Although BD’s management believes non-GAAP results are useful in evaluating the performance of its business, its reliance on these measures is limited since items excluded from such measures may have a material impact on BD’s net income, earnings per share or cash flows calculated in accordance with GAAP. Therefore, management typically uses non-GAAP results in conjunction with GAAP results to address these limitations.  BD strongly encourages investors to review its consolidated financial statements and publicly filed reports in their entirety and cautions investors that the non-GAAP measures used by BD may differ from similar measures used by other companies, even when similar terms are used to identify such measures. Non-GAAP measures should not be considered replacements for, and should be read together with, the most comparable GAAP financial measures.

Reconciliations of these and other non-GAAP measures to the comparable GAAP measures are included in the attached financial tables. Within the attached financial tables presented, certain columns and rows may not add due to the use of rounded numbers. Percentages and earnings per share amounts presented are calculated from the underlying amounts.

Current and prior-year adjusted diluted earnings per share results exclude, among other things, the impact of purchase accounting adjustments, integration and restructuring costs, spin-off related charges, certain transaction gains, certain legal defense and product remediation costs, certain regulatory costs, certain asset impairments, the impact of the extinguishment of debt and the dilutive impact of shares issued in May 2020.

We also provide these measures, as well as revenues, on a currency-neutral basis after eliminating the effect of foreign currency translation, where applicable.  We calculate foreign currency-neutral percentages by converting our current-period local currency financial results using the prior period foreign currency exchange rates and comparing these adjusted amounts to our current-period results.  Reconciliations of these amounts to the most directly comparable GAAP measures are included in the tables at the end of this release.

Palo Alto Networks (NYSE: PANW), the global cybersecurity leader, and Envision Virgin Racing, the leading team in the current ABB FIA Formula E World Championship standings have announced today a multiyear partnership. Through this partnership the companies aim to raise awareness around their like-minded missions to build a safe and sustainable future.

Palo Alto Networks helps address the world’s greatest cybersecurity challenges with continuous innovations in cloud security, network security and security analytics. The company leads the way in providing cybersecurity solutions and trusted intelligence that help complex organizations securely advance in an increasingly connected society.

With this new partnership, Palo Alto Networks will become an official partner of both Envision Virgin Racing and its innovative ‘Race Against Climate Change’ sustainability programme, created to help amplify the fight against climate change and accelerate the adoption of zero emission vehicles.

This will include the enhancement and optimisation of Envision Virgin Racing’s cybersecurity solutions, which are fundamental to the digital safety of the team. In addition, Envision Virgin Racing driver Robin Frijns, who is now second in the driver standing and a firm contender for the championship title, will also become an official ambassador of Palo Alto Networks.

As one of the founding teams of the FIA Formula E World Championship, Envision Virgin Racing — owned by world-leading greentech company Envision Group — boasts an impressive record both on and off the track. Aside from securing 11 wins and 33 podiums, Envision Virgin Racing is the first carbon neutral Formula E team (PAS 2060). It is also one of a handful to achieve the FIA’s Three Star Sustainability Accreditation, and the only team to partner with the UK government to support their ‘Together For Our Planet’ initiative and the UN’s COP26 global summit.

The partnership between the two companies will officially commence at the Formula E Season 7 Berlin E-Prix 14-15 August 2021, where the team’s race cars will also sport Palo Alto Networks branding.

Commenting on the announcement, James Mercer, commercial director at Envision Virgin Racing, said: “Both Envision Virgin Racing and Palo Alto Networks are at the forefront of new technologies that help us build a better future, and we are delighted to be joining forces with them.

“Envision Virgin Racing is driving new EV technologies that converge more and more with our daily activities, and the work that Palo Alto Networks does sits at the very centre of it, ensuring that we are all operating in a safe and happy environment,” added Mercer.

Zeynep Inanoglu Ozdemir, chief marketing officer of Palo Alto Networks, added: “True partnerships are based on a shared aspiration to create great impact in the world. Envision Virgin Racing’s commitment to its Race Against Climate Change for a better future aligns with our vision of a world where each day is safer than the one before. We value this partnership and the opportunity to amplify each other’s mission, as we both continue to make progress on emerging challenges.”

Aligned to the vision of the National Education Policy 2020 of transforming assessment for student development, Macmillan Education, the renowned global curriculum company, launched two assessment solutions: a competency-based assessment, MY MIDAS and an adaptive personalized learning solution for student development called MY MIDAS PLUS.

MY MIDAS is an assessment for learning and does timely identification of areas of strength and improvement so that students develop conceptual understanding before moving to the next level of learning. In short, students find out not just what they know, but also what they don’t know. The assessment consists of multiple-choice questions tagged to the Bloom’s taxonomy, in core subjects of English, Maths, EVS and Science for grades 3 to 8. Harnessing technology, MY MIDAS will generate actionable learning insights to help school management define a way forward and serve as critical feedback for teachers to intervene.

MY MIDAS PLUS is an adaptive and personalized learning solution for schools to move ahead on their journey of ‘assessment of, for and as learning’ during the full academic year. Running on an AI enabled platform from Genius corner, MY MIDAS PLUS will empower schools with real-time consolidated reports of students/cohorts with powerful visualisations. These can be used to drive up proficiency levels, through differentiated teaching for individual student benefit. MY MIDAS PLUS will be a lighthouse for parents to direct students’ efforts in the right direction. Since it is an online assessment solution, it can be taken from anywhere on a computing device.

Mr. Rajesh Pasari, MD Macmillan Education India, commented, “We are extremely proud to be launching our new assessment solutions MY MIDAS and MY MIDAS PLUS with our platform partner, Genius Corner. Following NEP 2020, learning will become more outcome focussed, schools could begin with a diagnosis of learning through MY MIDAS followed by remediation and learning ownership through MY MIDAS PLUS. With school leaders committed to student development, we are positive that there will be a strong uptake for MY MIDAS and MY MIDAS PLUS across India.”

Mr. Vishal Khatter, Founder and CEO Genius Corner, said, “Genius Corner platform for MY MIDAS and MY MIDAS PLUS uses ‘Assessment For and As Learning’ through Artificial Intelligence algorithms to provide actionable intelligence to educators. The platform is built on the AAA (Assess, Analyze and Act) framework and brings all the stakeholders – School Managements, Teachers, Students, and Parents, together for the common objective of improved learning through personalized learning modules. It ensures that there is a continuity of learning at home, and students have access to the learning ecosystem even after the school hours.”

There is widespread recognition that assessment and evaluation frameworks are key to building stronger school systems. It is important to view assessment and evaluation not as ends in themselves, but as important tools to attain learning outcomes.