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Philips (PHG) Showcases New AI-Based Solutions at the RSNA

Koninklijke Philips PHG recently released its latest portfolio of smart diagnostic systems and transformative workflow solutions powered by AI at the Radiological Society of North America’s (RSNA) annual meeting in 2022.

Radiology plays an important role in guiding patients to the right treatment procedure. However, with massive increasing staff shortages and workloads, radiologists are finding it extremely difficult to manage and interpret the huge volume of data captured to provide quality care for each patient.

In a recent survey commissioned by Philips, 24% of radiology specialists stated that managing the sheer volume of data is the biggest issue faced by them in the healthcare industry, while nearly 65% stated that the staff is unable to handle the data overload efficiently.

In order to deal with these issues Philips has launched new solutions such as the Philips Imaging Orchestrator – ROCC (Radiology Operations Command Center) and Philips Ultrasound Collaboration Live. These solutions will help to virtualize radiology, and help in solving the staff shortage issue.

Philips is also launching other solutions such as the Philips Advanced Visualization Workspace to automate reporting procedures.

Koninklijke Philips N.V. Price and Consensus

Koninklijke Philips N.V. Price and Consensus
Koninklijke Philips N.V. Price and Consensus

Koninklijke Philips N.V. price-consensus-chart | Koninklijke Philips N.V. Quote

Philips Investing Heavily in AI Solutions to Boost Prospects

Philips has been unable to meet the rising demand for its various products such as image guided therapy, ultrasound and hospital patient Monitoring system products and connected care business solutions with proper supply due to the severe global shortage of chips, which has disrupted the manufacturing of life-saving medical devices and the supply chain system.

The chip shortage is happening at a time when black swan events such as the Covid-19 pandemic is still prevalent, while wars between nations like Russia and Ukraine are posing a severe threat to people’s lives.

Headwinds caused primarily due to global supply chain challenges, COVID lockdowns in China the Russia-Ukraine war impacted Philips’ top-line growth negatively in the third quarter of 2022, which grew in the low single digits. Additionally, adjusted EBITDA was hurt by lower sales volume as the rising inflation reduced demand for its products in high-margin businesses like patient monitoring, ultrasound and image-guided therapy systems, even though there is a positive review in the market regarding Philips’ new solutions.

Due to the current macro-economic scenario, growth prospects are sluggish in the healthcare market worldwide, as evident from the negative share price movement of Philips and its peers operating in the broader medical sector, including Aclaris Therapeutics ACRS, Abeona Therapeutics ABEO and Agenus AGEN.

Philips currently has a Zacks Rank # 4 (Sell). Shares of PHG have plunged 60.9% in the year-to-date period compared with the Zacks Medical-Products industry and the Medical sector’s decline of 44.8% and 18.6%, respectively.

You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

ACER’s shares have fallen 48.7% in the year-to-date period compared with the Zacks Medical - Drugs industry’s decline of 30.3%.

Abeona’s stock has tanked 54.2% in the year-to-date period compared with the Zacks Medical - Biomedical and Genetics industry’s decline of 19.6%.

Agenus’ shares have slumped 16.7% in the year-to-date period compared with the Zacks Medical - Biomedical and Genetics industry’s decline of 19.5%.

However, the pandemic exposed various issues in healthcare and highlighted how new trending technologies like AI and virtual care solutions are required to support patients in these trying times effectively.

Effective crisis management has given rise to healthcare companies like Philips integrating the benefits of the cloud and software as a service (SaaS) in the healthcare industry.

The development of Philips’ latest AI-based products will aid in providing diagnosis faster and through virtual sessions to patients who have no access to hospitals.

The development of its AI-based solutions separates the company’s services from its peers and is likely to aid the company in winning market share, as the healthcare industry bounces back in the long run.

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Koninklijke Philips N.V. (PHG) : Free Stock Analysis Report

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