utah778/iStock via Getty Images
MedTech companies Becton, Dickinson (NYSE:BDX) and STERIS (NYSE:STE) rose on Monday after an Illinois grand jury found that rival disinfection provider Sotera Health (SHCD) Not responsible for causing cancer in women.
Sotera (SHCD) stock hit a one-month high after a jury in court in Cook County, Illinois, announced its decision late Friday.
The ruling comes more than two months after another jury awarded $363 million in damages noting that the company’s Sterigenics unit was liable for carcinogenicity due to carcinogenic emissions. ethylene oxide (EO) from one of the company’s plants.
BD (BDX) and STERIS (STE) also faces similar lawsuits related to EO emissions. However, Evercore ISI said that it had previously arranged a small sell-side call after the legal win for Sotera (SHCD), suggesting that “comfort in these circumstances is not physical and is a sign of being proactive with the investment community.”
The company doesn’t think there’s a need for a provision to reflect the overhang, the analysts added, arguing, “all in all, based on what we know, it looks like the ETO issue is overblown.” excessive for BDX.”
STERIS (STE), which also dominates the medical disinfection services market, is also facing EO lawsuits, but not to the extent of Sotera (SHCD), Needham argued, but downgraded the stock later legal step back in September.
