Becton, Dickinson and Company (NYSE:BDX) is included among the 12 Best Income Stocks to Buy Now. RBC Sees Durable Growth Profile at Becton Dickinson (BDX), Raises Target On December 17, RBC Capital raised its price target on Becton, Dickinson and Company (NYSE:BDX) to $210 from $202 and kept a Sector Perform rating on the shares. The call came as part of a broader research note looking ahead to 2026 for Medical Supplies & Devices. RBC expects the sector to carry positive momentum into next year. The firm ...

Financial Data and Key Metrics Changes - Revenue for the first quarter of 2025 was $18,500,000, representing a 12% increase year-over-year and a 5% sequential growth from the fourth quarter of 2024 [4] - Gross margin decreased to 67.6% from 68.3% in the prior year, primarily due to excess and obsolete inventory adjustments [13] - Net loss for the first quarter was $11,300,000 compared to $5,700,000 in the prior year, largely affected by the previous year's sale of the Nivas product line [15] Business Line Data and Key Metrics Changes - Revenue from OviTex grew 15% year-over-year, while OviTex PRS revenue grew 2% [12] - OviTex unit sales increased by 29% for the quarter, while PRS unit sales declined slightly by 3% [12] - The company reached over 69,000 OviTex hernia implantations since inception, with OviTex IHR and Liquefix each generating over $1,000,000 in sales since their launch in 2024 [9] Market Data and Key Metrics Changes - The European business saw a 17% growth over the first quarter of 2024, indicating strong international demand [5] - The hernia market is shifting away from plastic mesh towards more natural repair products, which positions the company favorably [8] Company Strategy and Development Direction - The company is focused on expanding its commercial organization, with plans to increase the number of territory managers and account specialists [6] - The introduction of larger sizes of OviTex PRS products aims to simplify complex procedures and improve operational efficiency for surgeons [9] - The company is committed to bringing new and complementary products to market, enhancing its product portfolio [9] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to achieve its 2025 revenue guidance of $85,000,000 to $88,000,000, representing growth of 23% to 27% over 2024 [5][16] - The management highlighted the importance of stability and strength in the sales force, emphasizing a long-term growth strategy rather than short-term gains [25][26] Other Important Information - The company is currently facing a 10% tariff on products shipped from New Zealand, which is expected to negatively impact gross margin by 50 to 100 basis points [11] - The company is working to mitigate tariff impacts by adjusting shipping strategies [11] Q&A Session Summary Question: What are the key factors for continuing sequential growth through the end of the year? - Management noted that historical revenue patterns indicate a larger step up from Q1 to Q2, with continued traction from sales representatives driving growth [21][22] Question: Any changes in competitive hiring dynamics? - Management indicated that the hiring environment has stabilized, with a strong sales force and high morale contributing to retention [27][28] Question: Clarification on tariff impact on gross margin? - Management explained that the tariff impact will gradually affect gross margin starting in Q2, with a projected negative effect of 50 to 100 basis points [38][39] Question: How is the bundling situation with GPOs playing out? - Management emphasized the need to increase the number of surgeons using their products in facilities to justify their market position [45][46] Question: Updated expectations on growth rates for PRS and OviTex? - Management expects continued good growth from both products, with PRS anticipated to grow faster due to its higher average selling price [51][54]

Financial Data and Key Metrics Changes - Revenue for Q1 2025 was $18.5 million, representing a 12% increase year-over-year and a 5% increase sequentially from Q4 2024 [4][12] - Gross margin decreased to 67.6% from 68.3% in the prior year, primarily due to excess and obsolete inventory adjustments [13] - Net loss for Q1 2025 was $11.3 million compared to $5.7 million in the prior year, largely affected by the previous year's gain from the sale of the Nivas product line [14] Business Line Data and Key Metrics Changes - Revenue from OviTex grew 15% year-over-year, while OviTex PRS revenue grew 2% [12] - Unit sales of OviTex increased by 29% for the quarter, while PRS unit sales declined slightly by 3% [12] - The company has seen strong demand for both OviTex and OviTex PRS, with revenue for each growing approximately 152% [4] Market Data and Key Metrics Changes - The European business experienced a 17% growth over Q1 2024, indicating a strong international opportunity [5] - The hernia market is shifting away from plastic mesh towards more natural repair products, which positions the company favorably [7][29] Company Strategy and Development Direction - The company is reaffirming its 2025 revenue expectation of $85 million to $88 million, representing growth of 23% to 27% over 2024 [5][15] - The new territory manager and account specialist structure is yielding positive results and is expected to enhance sales effectiveness [6] - The company is committed to bringing new and complementary products to market, including larger sizes of OviTex PRS [9] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the commercial organization and its ability to drive growth, emphasizing the importance of stability and strength in the sales force [24] - The company is positioned well for continued growth, particularly as the industry moves away from plastic mesh [17] - Management acknowledged the impact of tariffs on gross margin but expects only a modest effect [11][38] Other Important Information - The company has trained 25 new sales team members year-to-date, which is expected to contribute positively to sales [6] - The company is actively working to mitigate the impact of tariffs by adjusting shipping strategies [11] Q&A Session Summary Question: Revenue cadence through the back half of the year - Management noted that historical revenue patterns suggest a larger increase from Q1 to Q2, a smaller increase from Q2 to Q3, and a larger increase from Q3 to Q4 [21][22] Question: Competitive hiring dynamics - Management indicated that the competitive hiring environment has stabilized, with a focus on maintaining morale and a strong sales force [26] Question: Clarification on tariff impact on gross margin - Management explained that the tariff impact would gradually affect gross margin starting in Q2 and continuing into Q3 [37][38] Question: Bundling situation at GPOs - Management emphasized the importance of increasing the number of surgeons using their products in each facility to justify their market position [44][46] Question: Updated expectations on growth rates for PRS and OviTex - Management expects continued good growth from both products, with PRS anticipated to grow faster due to its higher average selling price [50][51]