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Omnicell, Inc. OMCL recently announced that its cloud-based solutions and technology-enabled services have been adopted by its long-term sole source partner, Aultman Health Foundation. Notably, the selection is aimed at enhancing safety and efficiency in central pharmacy and point-of-care dispensing at Aultman.
Omnicell’s central pharmacy software platform will aid Aultman to streamline medication processes from the time a medication is received from the wholesaler to when it is dispensed to a patient.
The latest adoption of Omnicell’s medication management solutions is expected to contribute strongly to its top line.
Rationale Behind the Adoption
Per studies, pharmacists spend the majority of their time on non-clinical activities which adversely impact patient care, employee satisfaction and turnover. Also, medication management is expensive and error-prone, primarily due to manual and disjointed processes that affect safety and operational challenges, leading to clinician burnout.
Omnicell is continuously working toward transforming the pharmacy care delivery model through its Autonomous Pharmacy, which combines hardware, software and services. This aids in improving quality, reducing costs, and increasing human efficiencies.
Aultman is expected to leverage technology to automate critical workflows in central pharmacy with the addition of Omnicell’s Central Pharmacy Dispensing Service to optimize the technology, improving overall operational efficiency. Further, Omnicell’s XT Automated Dispensing Systems are expected to enable Aultman to enhance safety and efficiency in patient care.
Per a report by Research And Markets, the global medication management system market is expected to reach $5.7 billion by 2026, growing at a CAGR of 20.1% between 2020 and 2026. Factors like rising investments by hospitals in order to enhance workflow, technological advancements and awareness about decreasing medication errors are expected to drive the market.
Given the market potential, the increasing adoption of Omnicell’s services is expected to significantly strengthen its position globally.
Of late, Omnicell has been witnessing a slew of developments in its business.
The company, in March, announced that its Cincinnati, OH-based existing partner, Christ Hospital Health Network, is adopting its Central Pharmacy Dispensing Service. This adoption will automate critical workflows in Central Pharmacy, optimize technology and contribute to overall operational efficiency.
Omnicell, during its fourth-quarter 2020 earnings call in February, confirmed that it had signed two new long-term sole source agreements during the quarter. The first deal, with SolutionHealth, is a 10-year sole source agreement to expand Omnicell's footprint across its Southern New Hampshire network. The second deal is with West Virginia-based academic medical center, WVU Medicine. Notably, the center has strengthened its partnership with Omnicell to optimize safety and improve workflow efficiency through a new five-year agreement that will extend Omnicell Solutions throughout its four hospital systems.
In January, Omnicell announced strong market demand for its new CareScheduler digital solution, developed by EnlivenHealth, enabling pharmacies to efficiently and effectively manage administration of the COVID-19 vaccine.
Shares of the company have gained 88.9% in the past year compared with the industry’s 38.1% rise and S&P 500’s 49.3% growth.
Zacks Rank & Key Picks
Currently, Omnicell carries a Zacks Rank #3 (Hold).
Some better-ranked stocks from the broader medical space are Hologic, Inc. HOLX, Hill-Rom Holdings, Inc. HRC and DENTSPLY SIRONA Inc. XRAY.
Hologic’s long-term earnings growth rate is estimated at 15.4%. The company presently sports a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Hill-Rom’s long-term earnings growth rate is estimated at 7.3%. It currently carries a Zacks Rank #2.
DENTSPLY’s long-term earnings growth rate is estimated at 20%. The company presently carries a Zacks Rank #2.
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