Avery Dennison Medical Solutions, a business unit of Avery Dennison Corporation (AVY) has decided to team up with the producer of mobile health applications and patient monitoring systems, Preventice, Inc. The synergy will be producing a new version of Metria that will be patch-based wearable sensors for clinical monitoring of a patient’s physiological characteristics.
The Metria solution provides continuous link between patients and health care providers using mobile, cloud-based and sensor technology of Proteus Biomedical, Inc. These wearable sensors monitor the patients’ health conditions, track them and bring them to the health care facilities. These sensors help in preventing disease before its onset.
The new version of the solution will be incorporated within the Preventice Care Platform and used for remote monitoring in hospitals and health care systems in the U.S. These mobile health applications also help in improving the doctor-patient relationship as they remain connected constantly and can share all valuable information.
About Preventice, Inc.
Preventice, Inc. is a privately owned leading developer of mobile health applications and remote monitoring systems connecting mobile, home-based, and on-premise technologies to deliver continuous patient care anywhere. The solutions of Preventice help in creating constant connection between health care providers, life science companies and their patients along with sharing critical information.
Avery’s Other Partnership in Medical Solutions
Earlier in 2011, Avery entered into a collaboration with the leader in intelligent medicine and mobile health products, Proteus Biomedical, Inc. The team focused on producing patch-based wearable sensors for consumer, home health care and remote medical applications.
The Metria solution is a revolutionary application in the field of medical sciences. The strategic alliances of Avery with the leading companies will help it in emerging as a leader in the burgeoning areas of consumer and remote patient monitoring.
However, Avery is struggling with higher raw material costs and low volumes. It is trying to combat them by implementing price increases and cost reduction initiatives. The company may face intense competition from its peers like Bemis Company Inc. (BMI) and 3M Co. (MMM) if it tries to pass on the higher raw material prices to the customers by increasing the prices.
The stock retains a short-term Zacks #3 Rank (Hold). We have a long-term Underperform recommendation on Avery.Read the Full Research Report on AVY
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