Philips (PHG) Bolsters Diagnostic Imaging With New Launches
Philips PHG announced a slew of AI-enabled innovations at RSNA23 to focus on patient care through enhanced efficiency.
Notably, Philips introduced next-generation ultrasound systems, namely EPIQ Elite 10.0 and Philips Affiniti, to simplify clinical workflows with a single user interface, shared transducers and automated tools, enhancing user experience.
Further, the company showcased the world’s first helium-free mobile magnetic resonance imaging system, BlueSeal MR Mobile, which is designed to enhance diagnostic imaging and requires only seven liters of liquid helium, offering cost and up-time advantages.
Additionally, Philips introduced HealthSuite Imaging, an AI-enabled cloud-based Picture Archiving and Communication System, which offers high-speed remote diagnostic reading, integrated reporting and AI-powered workflow orchestration, enhancing operational efficiency and patient care.
Also, the company launched the ‘care means the world' campaign at the event, emphasizing the connection between human and environmental health.
Philips is expected to gain solid traction across diagnostic centers and other healthcare providers on the back of its latest move.
Koninklijke Philips N.V. Price and Consensus
Koninklijke Philips N.V. price-consensus-chart | Koninklijke Philips N.V. Quote
Expanding Diagnosis & Treatment Portfolio
The latest move is in sync with the company’s deepening focus to bolster its Diagnosis & Treatment offerings.
Notably, Philips collaborated with Quibim on an integrated solution using AI-based QP-Prostate software to automate real-time prostate gland segmentation in MR images. This will enhance diagnostic confidence, personalized treatment and better outcomes for patients requiring MR exams, thereby reducing the need for manual procedures.
Further, the company unveiled Philips Ultrasound Compact 5500CV at the 2023 American Society of Echocardiography Event. This portable, compact system offers high-quality image and echocardiography workflows in cart-based systems, providing a single point of access for diagnosing and treating cardiac disease.
Additionally, Philips will showcase its latest Digital X-ray innovations, including the Philips Radiography 7000 M, at RSNA, aiming to improve patient care and operational efficiency.
Growth Prospects
We believe that all the above-mentioned endeavors will likely aid the company in strengthening its footprint in the global diagnostic imaging market.
Per a Markets and Markets report, the global diagnostic imaging market is expected to reach $34.6 billion by 2028, exhibiting a CAGR of 5.5% between 2023 and 2028.
A Mordor Intelligence report indicates that the global diagnostic imaging market will witness a CAGR of 6.1% during the forecast period of 2023-2028.
Strong prospects in the promising diagnostic imaging market will likely instill investor optimism in the stock.
Philips has gained 43.2% on a year-to-date basis against the industry’s decline of 5.8%.
Moreover, the aforementioned launches are expected to solidify the company’s Diagnosis & Treatment business.
In the third quarter of 2023, Philips reported Diagnosis & Treatment revenues of €2.2 billion, registering growth of 6% from the year-ago quarter.
Philips expects the 2023 Diagnosis & Treatment segment’s revenues to witness high-single-digit to double-digit growth.
Strength in the underlined segment will likely aid the company’s overall financial performance in the near term.
Philips expects 2023 comparable sales growth in the band of 6-7%.
Zacks Rank & Stocks to Consider
Currently, Philips carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader medical market sector are DaVita DVA, DexCom DXCM and Fate Therapeutics FATE. While DaVita sports a Zacks Rank #1 (Strong Buy), DexCom and Fate Therapeutics carry a Zacks Rank #2 (Buy) each. You can see the complete list of today’s Zacks #1 Rank stocks here.
DaVita shares have gained 33.1% in the year-to-date period. The long-term earnings growth rate for DVA is currently projected at 18.25%
DexCom shares have gained 0.7% in the year-to-date period. DXCM’s long-term earnings growth rate is currently projected at 33.59%.
Fate Therapeutics shares have lost 77.4% in the year-to-date period. The long-term earnings growth rate for FATE is currently projected at 29.49%.
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