BD Stock Might See Short-term Decline After Warning on Tamponade Tubes

Becton, Dickinson and Company BDX, popularly known as BD, along with its subsidiary C.R. Bard Urology and Critical Care, recently issued an urgent update regarding the use of its esophagogastric balloon tamponade tubes. These medical devices are used in emergency situations to control bleeding from enlarged veins in the esophagus and stomach by inflating balloons that apply pressure to the bleeding area.

The warning comes considering one reported death and two serious injuries tied to complications during the device's preparation and use. The FDA has since highlighted BD’s updated instructions, alerting healthcare professionals to potential hazards and reinforcing proper usage procedures.

Likely Trend of BDX Stock Following the News

Following the announcement, shares of the company traded flat till Thursday’s closing. Shares of the company have lost 23.4% in the year-to-date period compared with the industry’s 0.8% decline. The S&P 500 has lost 0.3% in the same time frame.

However, this news could negatively impact BD’s stock price in the short term due to concerns over product safety, potential litigation risk, and heightened regulatory scrutiny. Investor sentiment may waver as the reported deaths and injuries raise questions about quality control and oversight. However, the long-term impact will depend on how swiftly and transparently BD resolves the issue and restores trust.

BD currently has a market capitalization of $49.59 billion. It has an earnings yield of 8.1%, which is higher than the industry’s 5.3%. In the last reported quarter, BDX delivered an earnings surprise of 2.1%.

FDA Flags Risk After Reports of Injury and Death

The FDA’s safety communication followed BD’s discovery of an issue with the esophagogastric balloon tamponade tubes, particularly during the pre-use phase. Users reported difficulties in removing the plastic plugs from the rubber lumens that are required to inflate the gastric and esophageal balloons. In several cases, attempts to remove the plugs damaged the device, rendering it unusable and necessitating an immediate replacement.

The consequences of such delays can be critical. The FDA warned that these complications could hinder timely diagnosis or treatment, potentially worsening hypotension and its short- and long-term effects, such as additional surgical intervention or even death. The FDA also emphasized the need for vigilance and precise adherence to updated device handling protocols to mitigate these risks.

BD's Response: Updated Instructions

In response to these serious incidents, BD initiated outreach to affected customers, starting with a letter sent on April 17 and a more detailed follow-up on May 19. These communications outlined revised preparation steps aimed at preventing device damage during plug removal. Customers were instructed to remove the plugs before device use and set them aside. A specific method was also advised: inserting one jaw of a 5" straight smooth jaw hemostat between the plug and rubber lumen, then rotating the tool around the plug’s circumference to safely detach it.

Post-removal, BD emphasized that users must test the balloons for air leaks before deploying the device. The company is reinforcing training across healthcare facilities and reviewing product handling instructions to reduce the chance of recurrence. While no product recall has been formally announced, these precautionary steps are critical to ensuring patient safety during emergency procedures.

BDX’s Zacks Rank & Key Picks

Currently, BD carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the broader medical space that have announced quarterly results are CVS Health Corporation CVS, Integer Holdings Corporation ITGR and AngioDynamics ANGO.

CVS Health, carrying a Zacks Rank of 2 (Buy), reported first-quarter 2025 adjusted earnings per share (EPS) of $2.25, beating the Zacks Consensus Estimate by 31.6%. Revenues of $94.59 billion outpaced the consensus mark by 1.8%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

CVS Health has a long-term estimated growth rate of 11.4%. CVS’s earnings surpassed estimates in each of the trailing four quarters, with an average surprise of 18.1%.

Integer Holdings reported first-quarter 2025 adjusted EPS of $1.31, beating the Zacks Consensus Estimate by 3.2%. Revenues of $437.4 million surpassed the Zacks Consensus Estimate by 1.3%. It currently sports a Zacks Rank #1.

Integer Holdings has a long-term estimated growth rate of 18.4%. ITGR’s earnings surpassed estimates in three of the trailing four quarters and missed once, the average surprise being 2.8%.

AngioDynamics, currently sporting a Zacks Rank #1, reported a third-quarter fiscal 2025 adjusted EPS of 3 cents against the Zacks Consensus Estimate of a 13-cent loss. Revenues of $72 million beat the Zacks Consensus Estimate by 2%.

ANGO has an estimated fiscal 2026 earnings growth rate of 27.8% compared with the S&P 500 Composite’s 10.5% growth. The company surpassed earnings estimates in each of the trailing four quarters, with the average surprise being 70.9%.

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

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