MedTech Bigwigs in Spotlight as AI Revolutionizes Healthcare
Recently, many medical device companies are adopting artificial intelligence (AI) capabilities to aid therapeutic and diagnostic applications. AI-driven solutions are rapidly being used to detect & diagnose the virus through personalized information and learning. In fact, with the help of AI and robotics, healthcare providers can save more lives and cure diseases that are currently undiagnosable or incurable.
Per a report by Grand View Research, the global AI in cancer diagnostics market size was $93.2 million in 2021 and is expected to expand at a CAGR of 28.0% by 2030. Early detection of cancer is possible through AI for screening and diagnosis of cancer, which is expected to boost market growth.
In line with this, Medtronic plc, MDT, the renowned medical-device company, is meaningfully increasing its investments into AI and other technologies to help the healthcare industry catch up with other industries.
This month, Medtronic announced that Cosmo Pharmaceuticals and NVIDIA intend to integrate NVIDIA's AI technologies into Medtronic’s GI Genius intelligent endoscopy module. Medtronic’s latest partnership with Nvidia and Cosmo Pharmaceuticals provides the GI Genius AI Access platform intended to boost AI innovation for healthcare.
Within Medtronic’s Medical Surgical Portfolios, the company is gaining from the positive sales momentum with the rollout of its differentiated Hugo robotic system in many international markets. The company started its U.S. IDE trial for the urology indication. We are also impressed by Medtronic’s strong prospects within Touch Surgery Enterprise, the AI-powered surgical video and analytics platform.
The latest move of the company positions it well to capitalize on the growth prospects in the AI market.
Currently, Medtronic carries a Zacks Rank #3 (Hold). Shares of the company have gained 10.4% in the past six months against the industry’s fall of 2.8%.
Peers Developments Within AI
This month, Henry Schein, Inc. HSIC, a joint venture with Internet Brands — Henry Schein One — recently announced the integration of AI solutions into Dentrix Ascend. This is a cloud-based practice management software by Henry Schein One. The AI solutions include Dentrix Ascend Detect AI, which is powered and manufactured by VideaHealth, and Dentrix Ascend Voice, powered by Bola AI.
Dentrix Ascend Detect AI uses artificial intelligence to provide automated x-ray scans and AI-enabled detections. The FDA-cleared technology is fully integrated into the Dentrix Ascend imaging workflow. This helps dentists and hygienists confirm a patient’s condition faster, which saves time and elevates patient care.
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Currently, Henry Schein carries a Zacks Rank #2 (Buy). Shares of the company have lost 6% in a year compared with the industry’s fall of 27.8%.
The same month, Syneos Health, Inc. SYNH signed a strategic multi-year agreement with Microsoft to increase AI usage across its clinical and commercial activities for biopharma customers. Under the deal, the company plans to collaborate with Microsoft Research and leverage developments from OpenAI.
Under this AI-enabled platform, SYNH can process and analyze data to fast-track timelines, optimize resource allocation and unlock clinical trial efficiencies.
Currently, Syneos Health carries a Zacks Rank #3. Shares of the company have lost 6% in a year compared with the industry’s fall of 27.8%.
Further, Stryker Corporation SYK has significant exposure to robotics, AI for health care and medical mechatronics. Mako is Stryker’s robotic-arm-assisted surgery platform that can be used for total knee, hip and partial knee replacement procedures. The platform is currently the leading player in the robotic-assisted surgery market, with its installations touching record levels in most of the quarters in the past three years. In the United States, approximately 50% of knee replacements were done using Mako, while almost 30% of hip replacement procedures were done using this platform. Stryker is progressing well with the development of Mako technology for application in spine- and shoulder-related procedures. A launch is expected in the second half of 2024.
SYK’s focus on the expansion of Mako in new patient populations will likely enable the robotic-platform’s growth momentum to continue in 2023. Moreover, continued software upgrades and the addition of technologies to work along with the platform should boost adoption.
Stryker currently carries a Zacks Rank #3. Stryker’s shares have lost 8.3% this year compared with the industry’s decline of 43%. The S&P 500 has declined 17.5% in the same period.
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