GE HealthCare Technologies’ GEHC MIM Software recently announced that it has received FDA clearance to perform Centiloid scaling for positron emission tomography (PET)-based amyloid image analysis and quantification.
With MIMneuro, a vendor-neutral solution, this new Centiloid scaling tool is likely to help clinicians more accurately determine the density of amyloid plaque in a patient’s brain. Amyloid PET radiotracers help visualize the density of amyloid plaque in patients being evaluated for Alzheimer’s disease.
Likely Trend of GEHC Stock After the News
Following the announcement, the company’s shares rose nearly 1.7% to $88.53 yesterday.
GE HealthCare is one of the leading providers of medical technology, pharmaceutical diagnostics and digital solutions with a focus on precision care. In March, GE Healthcare acquired MIM Software, adding AI-based solutions for the practice of radiation oncology, molecular radiation oncology, diagnostic imaging and urology in imaging centers, hospitals, specialty clinics and research organizations worldwide. Given the strong potential for the diagnostic imaging market, we expect market sentiment to remain positive around this news.
Meanwhile, GEHC currently has a market cap of $39.63 billion. It has an earnings yield of 4.91%, which is much higher than the industry’s yield of negative (7.12)%. In the last reported quarter, GEHC delivered an earnings surprise of 2.04%.
Learn more about GEHC’s Centiloid Scaling Tool
A significant number of people in the United States develop dementia, with Alzheimer’s disease accounting for 60-80% of dementia cases. The condition affects memory, thinking, and behavior, and symptoms typically begin with mild cognitive impairment and eventually become severe enough to interfere with daily tasks. A hallmark of this condition is the buildup of beta-amyloid protein in the brain, which is associated with tissue loss and cell death.
To help physicians identify potential patients for amyloid-targeted therapies, PET imaging allows for visualization and quantification of amyloid protein. A global consortium of physicians and scientists created the Centiloid Scale with the goal of harmonizing quantitative amyloid imaging analysis across radiotracers and organizations.
GE HealthCare’s MIM software now offers MIMneuro with Centiloid scaling, which uses an automated workflow to help users generate and understand the quantitative result. The software takes the PET amyloid images, instructs clinicians to automatically generate quantitative results, and presents the data in a standardized report that clinicians can view along with the images. This makes it easier for clinicians to access the quantitative data they need to evaluate patients.
MIMneuro with Centiloid scaling is the latest addition to GE HealthCare’s comprehensive product and solution portfolio, which covers the entire Alzheimer’s care pathway from diagnosis through treatment monitoring.
Favorable outlook for GEHC in the sector
According to a report by Future Market Insight, the global brain imaging and neuroimaging market was valued at USD 13.7 billion in 2023 and is expected to exceed USD 22.4 billion by 2033 with a CAGR of 5.1%. The brain imaging and neuroimaging market is mainly driven by the rising incidence and prevalence of neurological disorders, increased awareness of neurodegenerative diseases, a rise in traumatic brain injuries, and increased applications of brain imaging and neuroimaging in clinical trials.
Given the market potential, the recent FDA approval of MIM Software’s Centiloid Scaling Tool is likely to provide a boost to GEHC’s business.
Notable developments at GEHC
In August, GEHC announced receipt of CE Mark for its Vscan Air SL handheld wireless ultrasound system with Caption AI. The company also received CE Mark for the use of ECG-free cardiac computed tomography scans on its Revolution Apex platform.
The company also collaborated with the University of California San Diego School of Medicine. The collaboration focuses on investigating advanced magnetic resonance imaging protocols and techniques for female-specific pelvic diseases and conditions and developing comprehensive educational materials for clinicians.
Price development of GEHC
Over the past six months, GEHC shares have fallen 2.6%, compared with the industry’s decline of 12.4%. The S&P 500 has risen 7.6% over the same period.
Image Source: Zacks Investment Research
GE HealthCare’s Zacks Rank and Stocks to Consider
GEHC currently has a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader medical sector include: Universal health service UHS, Quest diagnostics DGX And ABM Industries ABMWhile Universal Health Service has a Zacks Rank #1 (Strong Buy), Quest Diagnostics and ABM Industries have a Zacks Rank #2 (Buy).
Universal Health Service has an estimated long-term growth rate of 19%. UHS revenues have exceeded estimates in each of the four trailing quarters, averaging 14.58%.
The Universal Health Service has risen 56.1% so far this year, compared with a 48.1% increase in the sector.
Quest Diagnostics has an estimated long-term growth rate of 6.20%. DGX’s earnings have surpassed estimates in each of the last four quarters, with an average surprise of 3.31%.
Shares of Quest Diagnostics have risen 13.9% so far this year, compared with the sector’s gain of 17.9%.
ABM Industries’ earnings have beaten expectations in each of the last four quarters, with an average surprise of 7.34%.
ABM shares have risen 27.4% so far this year, while the sector has seen 17% growth.
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