Becton Official: Company 'Well Prepared' For Flu Outbreak
28 April 2009 - 5:39PM
Dow Jones News
Becton Dickinson & Co. (BDX) is "well prepared" to respond
to the swine flu with testing and immunization-delivery products, a
company official said Tuesday.
The medical-products maker saw soft sales of flu-testing
products in its recent fiscal quarter due to a mild flu season in
the U.S. But the rise of swine flu cases and potential for a
broader outbreak could quickly change that equation.
"We're very well prepared for this," Gary M. Cohen, an executive
vice president at Becton, said on a call with analysts. "We should
know soon whether it should have any impact on product demand."
The products swine flu could affect include rapid flu tests and
immunization devices that would be used with injectable anti-viral
drugs, Cohen said. There is already an increased demand for such
products in Mexico, which seems to have a strong link to the flu
outbreak, although the impact from that is minimal for Becton,
Cohen said.
Vincent A. Forlenza, the company's president, cautioned on the
call that "it's too early to really predict" what will happen with
the flu situation.
Cohen noted that Becton has long been planning around the
possibility of a pandemic, previously because of fears about avian
flu. The plans include work-force policies to ensure continuing
operations and to produce products that may be most in demand.
"Those activities are now engaged," Cohen said, while noting
that the company has two significant facilities in Mexico.
Becton shares were recently down 2.8% to $63.15 following an
announcement of lower-than-expected sales in the company's fiscal
second quarter, although the sales shortfall did not hurt
earnings.
-By Jon Kamp, Dow Jones Newswires; 617-654-6728;
jon.kamp@dowjones.com