Yahoo Finance GE HealthCare's (GEHC) New Launch to Enhance Precision Care
GE HealthCare Technologies Inc. GEHC recently announced its advancements in its ultrasound business with the launch of its next-level LOGIQ ultrasound portfolio. This includes the new LOGIQ Totus, which highlights the company’s progress in advancing precision care.
The LOGIQ E10 Series, LOGIQ Fortis and LOGIQ Totus are currently available in key countries worldwide. GE HealthCare was scheduled to demonstrate the next-generation LOGIQ portfolio at the European Congress of Radiology, held between Feb 28 and Mar 3, 2024, in Vienna.
The latest launch is expected to strengthen GE HealthCare’s capabilities in advancing artificial intelligence (AI) tools and boost its Ultrasound business.
Few Words About LOGIQ
The enhanced LOGIQ portfolio’s innovative new features and advanced AI tools are designed to address the evolving requirements of healthcare providers with easy imaging, efficient workflow and Verisound digital and AI solutions, including reporting, fleet management, AI and collaboration tools.
PIUR IMAGING’s ‘PIUR tUS inside’ is one of the first integrated LOGIQ AppAPI partners. The solution’s feature that prepares clinicians with a tool to diagnose thyroid medical conditions precisely is currently available in European markets that comply with CE marking, with additional regulatory approvals pending.
Significance of the Launch
Per GE HealthCare’s estimates, there is an increasing global shortage of radiologists, with an estimated 13 radiologists per 100,000 population in Europe. Its projections of shortages in specialties, including radiology, in the United States range from 10,300 to 35,600 physicians by 2034. Management feels these shortages are likely to fuel clinician challenges due to increased demand, thereby leading to higher rates of burnout.
Per management, the enhanced LOGIQ portfolio is expected to enable the company to deliver precision care with products and solutions that aid clinicians optimize care with ease and efficiency. Management also believes that the comprehensive portfolio of advanced solutions within the LOGIQ portfolio will likely enhance clinical confidence with its features and AI tools to ensure next-level, patient-centered care for a broad spectrum of patients in a variety of clinical settings and address the most pressing challenges and burdens faced by clinicians.
Industry Prospects
Per a report by MarketsandMarkets, the global ultrasound market was valued at $8.5 billion in 2023 and is anticipated to reach $11.6 billion by 2028 at a CAGR of 6.3%. Factors like the increasing patient population, the rising prevalence of chronic diseases and the growing focus on non-invasive procedures are likely to drive the market.
Given the market potential, the latest launch is expected to provide a significant boost to GE HealthCare’s business globally.
Notable Developments
Last month, GE HealthCare announced its fourth-quarter 2023 results, wherein it registered a solid uptick in its revenues both on a reported and organic basis.
In January, GE HealthCare announced its latest innovation in electrophysiology (EP), the Prucka 3 with CardioLab EP Recording system, to help clinicians diagnose and treat cardiac arrhythmias.
Price Performance
Shares of GE HealthCare have gained 20.9% in the past year against the industry’s 8.2% decline. The S&P 500 has witnessed 24.8% growth in the said time frame.
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Zacks Rank & Key Picks
Currently, GE HealthCare carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader medical space are DaVita Inc. DVA, Cardinal Health, Inc. CAH and Cencora, Inc. COR.
DaVita, sporting a Zacks Rank #1 (Strong Buy), has an estimated long-term growth rate of 12.1%. DVA’s earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 35.6%. You can see the complete list of today’s Zacks #1 Rank stocks here.
DaVita’s shares have gained 58.3% compared with the industry’s 18.9% rise in the past year.
Cardinal Health, flaunting a Zacks Rank of 1 at present, has an estimated long-term growth rate of 14.2%. CAH’s earnings surpassed estimates in each of the trailing four quarters, with the average being 15.6%.
Cardinal Health has gained 51.9% compared with the industry’s 3.2% rise in the past year.
Cencora, carrying a Zacks Rank of 2 (Buy) at present, has an estimated long-term growth rate of 9.8%. COR’s earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 6.7%.
Cencora’s shares have rallied 51.5% compared with the industry’s 3.6% rise in the past year.
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