NEW YORK (Reuters) – Shares of Becton Dickinson hit an all-time high on Monday and were last up 6.1% after the medical device maker received U.S. Food and Drug Administration clearance late on Friday for the market return of its drug infusion system.
Becton’s stock rose as high as $287.32, topping the previous intra-day record of $279.38 hit in February 2020.
The 510(k) clearance enables the company to resume selling its Alaris infusion system.
The company recalled some of the Alaris pumps more than three years ago due to concerns they could lead to quicker or slower than intended – or accidental – delivery of medicine.
“Alaris has been off the market for more than three years, and while BD didn’t see its market share collapse, it will take more than a year to get the sales close to pre-recall levels, in our view,” Morningstar analyst Alex Morozov wrote in a research note on Monday.
Raymond James analysts upgraded Becton Dickinson’s stock, while Jefferies and Stifel hiked their price targets on the shares to $325. The stock was last trading at $281.01.
Becton Dickinson said it expects to begin shipping the devices and recognizing revenue in its fiscal year 2024. It said it does not expect any material incremental revenue contribution from the Alaris infusion system for the rest of fiscal year 2023, which ends Sept. 30.
(Reporting by Caroline Valetkevitch, Lance Tupper and Manas Mishra; Editing by Bill Berkrot)
