Yahoo Finance Philips (PHG) Aids Image-Guided Treatment With New Stent System
Philips’ PHG shares have gained 16.6% in the year-to-date period, outperforming the Zacks Medical sector’s growth of 5.3%. The company is benefiting from a strong Diagnosis & Treatment segment, driven by its Precision Diagnosis and Image-Guided Therapy businesses. Hence, the company is making concerted efforts to strengthen these businesses.
In this regard, Philips’ recent launch of the Duo Venous Stent System in a bid to boost its Image-Guided Therapy portfolio remains noteworthy.
The Duo Venous Stent System is a medical device designed to treat patients with chronic venous insufficiency (CVI). It was successfully implanted in a CVI patient to treat symptomatic venous outflow obstruction, following its premarket approval from the U.S. Food and Drug Association (FDA).
Philips is expected to gain solid popularity among interventional radiologists and cardiologists on the back of the stent system.
Moreover, the medical device will enable the company to capitalize on growth opportunities present in the global CVI market, which, per the imarc group, is expected to witness a CAGR of 4.2% between 2024 and 2034.
Koninklijke Philips N.V. Price and Consensus
Koninklijke Philips N.V. price-consensus-chart | Koninklijke Philips N.V. Quote
Expanding Portfolio & Partner Base Aid Diagnosis & Treatment
PHG further boosted its Image-Guided Therapy business unit with the launch of Philips Image Guided Therapy Mobile C-arm System 9000 – Zenition 90 Motorized, which is aimed at improving surgeons' ability to deliver high-quality care to more patients.
Philips has been making similar efforts to strengthen its Precision Diagnosis business as well.
In this regard, the company’s latest launch of an AI-enabled cardiovascular ultrasound platform remains noteworthy. This FDA 510(k) cleared AI platform combines Philips’ EPIQ CVx and Affiniti CVx ultrasound systems, enhancing cardiac ultrasound analysis speed and reducing echocardiography lab workload.
Similarly, PHG also unveiled 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.
Expanding partner base has been another key catalyst to the Diagnosis & Treatment segment’s performance.
Philips recently partnered with Synthetic MR to launch Smart Quant Neuro 3D, a breakthrough in objective decision support for diagnosing and treating brain disorders like MS, TBI and dementia, bolstering PHG’s prospects in the brain imaging market.
Philips also signed a technology agreement with Dutch Franciscus Gasthuis & Vlietland hospital to develop a future-proof operating suite and intervention center. As part of the deal, PHG will offer its next-generation image-guided therapy platform, Azurion, to the intervention center, further strengthening its position as a leader in image-guided treatments.
Bottom Line
All the above-mentioned endeavors will continue aiding the Diagnosis & Treatment segment in the near term.
Philips expects 2024 comparable sales growth for the underlined segment in the band of 3-5%.
The strengthening Diagnosis & Treatment segment is expected to aid the overall financial performance of the company in the upcoming period.
Philips expects 2024 comparable sales growth in the band of 3-5%.
The Zacks Consensus Estimate for 2024 sales is pegged at $20.15 billion, indicating growth of 2.5% from the year-ago quarter.
The consensus mark for 2024 earnings is pegged at $1.54 per share, indicating an increase of 14.1% year over year. The figure has moved upward by 0.7% in the past 30 days.
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, ICON ICLR and Encompass Health EHC, each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
DaVita shares have jumped 36.2% in the year-to-date period. DVA’s long-term earnings growth rate is currently projected at 13.60%.
ICON shares have gained 13% in the year-to-date period. ICLR’s long-term earnings growth rate is currently projected at 15.43%.
Encompass Health shares have rallied 28.2% in the year-to-date period. The long-term earnings growth rate for EHC is currently projected at 15.65%.
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