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Cardinal Health (CAH) Launches Next-Gen Enteral Feeding Pump
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Cardinal Health (CAH - Free Report) announced the launch of its next-generation Kangaroo OMNI enteral feeding pump in the United States. The new pump’s design will provide more options to patients to meet their personalized needs for enteral feeding.
Per CAH, the Kangaroo OMNI is the first and only attitude-independent enteral feeding system launched so far in the country. The device is designed for portability with option for delivery of a wider variety of enteral formulas. The new pump has a familiar user interface to the earlier Kangaroo pumps that should help facilitate a smooth transition for patients as well as caregivers, across hospital and home-based care.
The Kangaroo is a leading brand in the nutritional delivery industry, with more than 30 years of presence.
Price Performance
Shares of Cardinal Health have risen 12.4% year to date compared with the industry's 9.3% growth. The S&P 500 Index has increased 12.9% in the same period.
Image Source: Zacks Investment Research
Significance of the Launch
The launch of Kangaroo OMNI should further strengthen Cardinal Health’s position in the nutritional delivery industry. The pump’s several new features will likely drive its adoption.
The Kangaroo OMNI pump has a versatile functionality including feed, flush and hydrate, and a 30-day feeding history that will help patients meet their personalized needs throughout their enteral feeding journey. The pump’s design will support the delivery of thick, homogenized and blended feeding formulas. It will also support a wider variety of commercially available enteral formulas compared with the earlier Kangaroo pump versions.
Moreover, the new pump has interruption monitoring that will display the missed nutrition once the device is turned off. It also has the night mode feature that darkens the pump’s display under low-light setting that should help minimize feeding distortion.
The pump’s design is likely to boost ease-of-use and portability compared with the earlier versions. It is the lightest, smallest, and quietest Kangaroo feed and flush enteral feeding pump so far.
The Kangaroo OMNI is also the most water-resistant Kangaroo pump that can be washed under running water. CAH provides compatible accessories such as a pole clamp and table stand for the pump, which supports 19 languages for screen content.
Industry Prospects
Per a report by Grand View Research, the enteral feeding devices market was valued at $4.1 billion in 2022 and is anticipated to reach $5.9 billion by 2030 at a CAGR of approximately 4.8%. Factors like the increased incidence of diabetes, severe pancreatitis and other gastrointestinal diseases are expected to drive the market.
Given the market potential, the latest launch is likely to provide a significant boost to Cardinal Health's business.
Recent Developments
CAH launched NTrainer System 2.0 in August to help reduce the length of stay for premature and newborn infants in neonatal intensive care units.
The same month, the company reported its fourth-quarter fiscal 2023 results, wherein it recorded a solid uptick in its overall top line. It also recorded significant improvement in the Medical segment, driven by the execution of its Medical Improvement Plan.
In June, Cardinal Health announced its plans to build a new distribution center in the Greenville, SC, area to support its at-Home Solutions business.
In May, Cardinal Health Canada announced its plans to open a new distribution center in the Greater Toronto Area. This should expand its distribution footprint to nine strategic locations to better meet the medical and surgical product demands of the Canadian healthcare system.
ALGN’s earnings surpassed estimates in two of the trailing four quarters and missed twice, delivering an average negative surprise of 1.76%. The company’s shares have risen 42.1% year to date compared with the industry’s 9.3% growth.
McKesson, carrying a Zacks Rank #2 at present, has an estimated long-term growth rate of 10.7%. MCK’s earnings surpassed estimates in three of the trailing four quarters and missed once, delivering an average surprise of 8.1%.
The stock has rallied 16.6% year to date compared with the industry’s 9.3% growth.
Medpace, carrying a Zacks Rank #2 at present, has an estimated growth rate of 16.2% for 2024. MEDP’s earnings surpassed estimates in each of the trailing four quarters, delivering an average surprise of 22.28%.
The company’s shares have rallied 14.2% year to date against the industry’s 13% decline.
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Cardinal Health (CAH) Launches Next-Gen Enteral Feeding Pump
Cardinal Health (CAH - Free Report) announced the launch of its next-generation Kangaroo OMNI enteral feeding pump in the United States. The new pump’s design will provide more options to patients to meet their personalized needs for enteral feeding.
Per CAH, the Kangaroo OMNI is the first and only attitude-independent enteral feeding system launched so far in the country. The device is designed for portability with option for delivery of a wider variety of enteral formulas. The new pump has a familiar user interface to the earlier Kangaroo pumps that should help facilitate a smooth transition for patients as well as caregivers, across hospital and home-based care.
The Kangaroo is a leading brand in the nutritional delivery industry, with more than 30 years of presence.
Price Performance
Shares of Cardinal Health have risen 12.4% year to date compared with the industry's 9.3% growth. The S&P 500 Index has increased 12.9% in the same period.
Image Source: Zacks Investment Research
Significance of the Launch
The launch of Kangaroo OMNI should further strengthen Cardinal Health’s position in the nutritional delivery industry. The pump’s several new features will likely drive its adoption.
The Kangaroo OMNI pump has a versatile functionality including feed, flush and hydrate, and a 30-day feeding history that will help patients meet their personalized needs throughout their enteral feeding journey. The pump’s design will support the delivery of thick, homogenized and blended feeding formulas. It will also support a wider variety of commercially available enteral formulas compared with the earlier Kangaroo pump versions.
Moreover, the new pump has interruption monitoring that will display the missed nutrition once the device is turned off. It also has the night mode feature that darkens the pump’s display under low-light setting that should help minimize feeding distortion.
The pump’s design is likely to boost ease-of-use and portability compared with the earlier versions. It is the lightest, smallest, and quietest Kangaroo feed and flush enteral feeding pump so far.
The Kangaroo OMNI is also the most water-resistant Kangaroo pump that can be washed under running water. CAH provides compatible accessories such as a pole clamp and table stand for the pump, which supports 19 languages for screen content.
Industry Prospects
Per a report by Grand View Research, the enteral feeding devices market was valued at $4.1 billion in 2022 and is anticipated to reach $5.9 billion by 2030 at a CAGR of approximately 4.8%. Factors like the increased incidence of diabetes, severe pancreatitis and other gastrointestinal diseases are expected to drive the market.
Given the market potential, the latest launch is likely to provide a significant boost to Cardinal Health's business.
Recent Developments
CAH launched NTrainer System 2.0 in August to help reduce the length of stay for premature and newborn infants in neonatal intensive care units.
The same month, the company reported its fourth-quarter fiscal 2023 results, wherein it recorded a solid uptick in its overall top line. It also recorded significant improvement in the Medical segment, driven by the execution of its Medical Improvement Plan.
In June, Cardinal Health announced its plans to build a new distribution center in the Greenville, SC, area to support its at-Home Solutions business.
In May, Cardinal Health Canada announced its plans to open a new distribution center in the Greater Toronto Area. This should expand its distribution footprint to nine strategic locations to better meet the medical and surgical product demands of the Canadian healthcare system.
Cardinal Health, Inc. Price
Cardinal Health, Inc. price | Cardinal Health, Inc. Quote
Zacks Rank & Stocks to Consider
Cardinal Health currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader medical space are Align Technology (ALGN - Free Report) , McKesson Corporation (MCK - Free Report) and Medpace (MEDP - Free Report) .
Align Technology, carrying a Zacks Rank #2 (Buy) at present, has an estimated long-term growth rate of 17.5%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
ALGN’s earnings surpassed estimates in two of the trailing four quarters and missed twice, delivering an average negative surprise of 1.76%. The company’s shares have risen 42.1% year to date compared with the industry’s 9.3% growth.
McKesson, carrying a Zacks Rank #2 at present, has an estimated long-term growth rate of 10.7%. MCK’s earnings surpassed estimates in three of the trailing four quarters and missed once, delivering an average surprise of 8.1%.
The stock has rallied 16.6% year to date compared with the industry’s 9.3% growth.
Medpace, carrying a Zacks Rank #2 at present, has an estimated growth rate of 16.2% for 2024. MEDP’s earnings surpassed estimates in each of the trailing four quarters, delivering an average surprise of 22.28%.
The company’s shares have rallied 14.2% year to date against the industry’s 13% decline.