Henry Schein, Inc. HSIC recently entered into a cooperative contract with OMNIA Partners to expand in the field of Point-of-Care testing, personal protective equipment (PPE), and essential medical supplies. OMNIA Partners is claimed to be the nation’s largest purchasing organization for public and private sector procurement.
The partnership is expected to broaden Henry Schein’s access to the abovementioned fields within academic and public health settings. However, the financial terms of the deal were not disclosed.
The Deal Details
Henry Schein noted that the product and supplies from this partnership will be available through the Henry Schein Medical University Health business. The company has entered into a master distribution agreement with the University of California. This master agreement is for the distribution of medical supplies to the University of California and all eligible public agencies registered with OMNIA Partners.
According to Henry Schein, this master agreement will help increase savings and support, and provide easy access to COVID-19 testing and services. This will therefore help the company better serve its ”Medical” customers involved in university health, K-12 education, local and state government health care, and first-aid services. Further, this master deal will also offer the supplies of medical, laboratory, equipment and treatment room, pharmaceutical, vaccine, flu, education, and training and simulation products to help fulfill the needs of student health centers, physical therapy, occupational therapy, sports medicine, athletic training, lab, and pharmacy customers.
According to Henry Schein, this cooperative contract with OMNIA Partners will help streamline the procurement process for the company’s customers within its Medical wing. This collaboration aims to help HSIC customers receive comprehensive options for the procurement of the medical products and supplies they need to maintain the health and wellness of the public, as well as students and staff.
Image Source: Zacks Investment Research
Additional benefits from this contract include support from sales and service specialists, and expanded access to Henry Schein Medical’s product portfolio.
Recent Notable Developments
In December 2021, Henry Schein’s orthodontics business, Henry Schein Orthodontics, launched Studio Pro 4.0 — a web-based treatment planning software for Reveal Clear Aligners. Reveal is the clear solution that helps practitioners meet their patients' clear aligner demands. It features direct integrations with many leading intraoral scanners as well as direct connections with practice management software. Henry Schein Orthodontics provides a variety of orthodontic products to dental markets all over the world.
In June 2021, Henry Schein achieved a $53.4-million national stockpile contract from the U.S. Department of Health and Human Services (HHS). The contract terms require the company to provide storage and innovative logistic support for 80,000 pallets of personal protective equipment (PPE) and COVID-related products to healthcare professionals.
In May 2021, the company acquired a 70% ownership position in eAssist Dental Solutions (eAssist). This acquisition will assist the company in fulfilling its mission of providing best-of-breed solutions that help dental offices run more efficiently and profitably, allowing them to focus more on patient care.
Share Price Performance
The stock has underperformed its industry over the past year. It has risen 9% compared with the industry’s 13.5% growth
Zacks Rank and Key Picks
Henry Schein currently carries a Zacks Rank #3 (Hold).
A few better-ranked stocks from the broader medical space are Chemed Corporation CHE, Laboratory Corporation of America Holdings, or LabCorp LH and Medpace Holdings, Inc. MEDP.
Chemed has a long-term earnings growth rate of 7.7%. The company surpassed earnings estimates in three of the trailing four quarters and missed in one, delivering a surprise of 5.6%, on average. It currently carries a Zacks Rank #2 (Buy).
Chemed has outperformed its industry over the past year. CHE has gained 3.7% against a decline of 35.6% for the industry.
LabCorp reported third-quarter 2021 adjusted EPS of $6.82, which surpassed the Zacks Consensus Estimate by 42.9%. Revenues of $4.06 billion outpaced the Zacks Consensus Estimate by 13.4%. It currently carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
LabCorp has an estimated long-term growth rate of 10.6%. LH surpassed estimates in the trailing four quarters, the average surprise being 25.7%.
Medpace reported third-quarter 2021 adjusted EPS of $1.29, surpassing the Zacks Consensus Estimate by 20.6%. Revenues of $295.57 million beat the Zacks Consensus Estimate by 1.2%. It currently carries a Zacks Rank #1.
Medpace has an estimated long-term growth rate of 16.4%. MEDP surpassed estimates in the trailing four quarters, the average surprise being 11.9%.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Laboratory Corporation of America Holdings (LH) : Free Stock Analysis Report
Henry Schein, Inc. (HSIC) : Free Stock Analysis Report
Chemed Corporation (CHE) : Free Stock Analysis Report
Medpace Holdings, Inc. (MEDP) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research