Becton, Dickinson and Company
Diversified medical device stock Becton, Dickinson and Company (BDX) has exposure to pharma, but its bread and butter is in the business of manufacturing and distributing consumable medical products like needles, syringes, and scalpels. The firm's exposure to staid (even boring) surgical instruments has given Becton some protection from economic conditions in the past, something that can't be said for peers who only develop high-tech, hit-or-miss medical devices.
Becton's exposure to pharma is centered around delivery systems, such as the syringes that deliver other firms' drugs. That means that Becton enjoys the tailwinds from increased pharmaceutical usage and an aging population, without caring who's manufacturing those drugs; big pharma or generic, Becton can still sell its syringes.And because Becton is the largest medical device maker of its kind, the firm has already established a robust distribution network that ensures medical facilities across the world have a steady supply of its offerings. Just over half of Becton Dickinson's business is located overseas. Becton saw steady growth throughout most of the recession, proving the defensiveness of its positioning to investors - a short interest ratio of 10.3 looks overplayed at this point. Any positive catalyst could easily spark a buying frenzy as shorts try to exit their positions. To see this week's short squeezes in action, check out the of of Pharmaceutical Short Squeezes portfolio on Stockpickr.
Twitter and become a fan on Facebook. At the time of publication, author had no positions in stocks mentioned. This article is commentary by an independent contributor, separate from TheStreet's regular news coverage.
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