BD (BDX) Acquires GSL Solutions for Medication Management

Becton, Dickinson and Company BDX, popularly known as BD, recently acquired GSL Solutions, Inc. (“GSL”). The latter is a privately-held company that specializes in developing of smart medication devices for the storage and monitoring of controlled substances and patient specific medications that enhance the security, efficacy and compliance of medication storage.

For investors’ notice, GSL is the fourth tuck-in acquisition that BD completed in fiscal 2021. Terms of the transaction are kept undisclosed. BD expects this buyout to be immaterial.

This acquisition is expected to boost BD Medical segment, thereby improving the company’s advanced medication management capabilities to further cater to the needs of retail pharmacies including those in outpatient settings.

More on the Acquisition

This strategic takeover offers innovative technologies to retail pharmacies and builds upon recent purchases that boosted BD’s traditional hospital pharmacy connected medication management solutions. Market consolidation, higher numbers of prescriptions written and constantly evolving regulations for controlled substances are increasing the need for correct, automated tracking of prescription medications and narcotics. This acquisition will pave the way for a new portfolio of BD products and services for retail and outpatient pharmacy customers to meet their current and future needs.

GSL leverages innovative technology to create secure medication management systems that provide retail pharmacists with end-to-end solutions that reduce the administrative burden while ensuring compliance and patient satisfaction. The acquisition will ensure that pharmacies run with more efficiency and profitability, thereby reducing the wait time for patients.

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Another Notable Acquisition

In November 2020, BD closed the acquisition of the Medical Business assets of CUBEX LLC. The latter is a privately-held company that designs cloud-based software offerings for advanced medication management. This acquisition widens the scope of BD’s medication management portfolio into the care continuum space and offers deeper integration with electronic health records (EHRs). This should further boost the BD Medical segment.

Market Prospects

Per a Mordor Intelligence report, the Medication Management System market is projected to witness a CAGR of 9.1% during the 2020-2025 period. Hence, this acquisition is well-timed.

Price Performance

Over the past year, shares of this currently Zacks Rank #3 (Hold) company have gained 6.8% compared with the industry’s growth of 32.4%.

Stocks to Consider

Some better-ranked stocks from the broader medical space are Align Technology ALGN, Abbott Laboratories ABT and Hologic HOLX. While Align Technology currently sports a Zacks Rank #1 (Strong Buy), the other two presently carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Align Technology has a projected long-term earnings growth rate of 19%.

Abbott has a projected long-term earnings growth rate of 14.1%.

Hologic has an estimated long-term earnings growth rate of 15.4%.

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