Becton Dickinson Acquires Tepha

Medical technology giant Becton, Dickinson and Company (BDX) has snapped up its long-standing partner Tepha, Inc., to accomplish its goal of driving innovation in soft tissue repair and regeneration.

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Tepha, Inc. is a leading developer and producer of proprietary resorbable polymer technology. The financial terms of the deal have been kept under wraps.

The addition of Tepha’s proprietary resorbable polymer technology will enhance the growth prospects of BDX’s surgical mesh portfolio. It will also unleash new opportunities for the company within soft tissue repair, reconstruction, and regeneration.

Furthermore, the deal is a good strategic fit and will lead to the vertical integration of a key supply chain component for BDX’s existing Phasix Mesh products.

Notably, Tepha marks the sixth acquisition completed by the company so far this fiscal year. The deal is not expected to have any significant impact on 2021 earnings. (See BDX stock charts on TipRanks)

Kevin Kelly, worldwide President for BD Surgery, commented, “This strategic acquisition advances BD’s category leadership in surgical mesh and enables future innovations to provide new solutions to physicians and their patients.”

He further added, “The acquisition — including its current and potential applications — will help ensure BD can continually provide physicians with the latest technology to treat their patients.”

Bank of America Securities analyst Bob Hopkins recently decreased the price target on BDX from $277 to $265 (6.2% upside potential).

Consensus among analysts on Wall Street is a Moderate Buy based on 2 Buy and 3 Hold ratings. The average analyst price target of $269 implies 7.9% upside potential to current levels.