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GE HealthCare (GEHC) New Deal to Aid Its Ultrasound Portfolio
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GE HealthCare Technologies (GEHC - Free Report) recently announced that it has entered into an agreement to acquire Intelligent Ultrasound Group PLC’s (Intelligent Ultrasound) clinical artificial intelligence (AI) software business for a total consideration of approximately $51 million. With integrated AI-driven picture analysis tools, Intelligent Ultrasound is a leader in making ultrasound more intelligent and effective.
With the acquisition of the business, GE HealthCare intends to integrate the technology solutions throughout its ultrasound range, bolstering its capabilities with technological solutions that facilitate better workflows and increased user-friendliness for the advantage of both patients and physicians. Intelligent Ultrasound is likely to carry on with a fresh emphasis on its state-of-the-art, high-fidelity ultrasound simulation technology intended to improve ultrasound education following the sale of its clinical AI business.
Acquisition Benefits for GE Healthcare
GE Healthcare is likely to welcome the innovative technology from Intelligent Ultrasound and integrate the latter’s solutions into its systems to aid clinicians in improving workflow, reducing repetitive tasks and simplifying exams. The technological solutions are likely to enhance GE Healthcare’s portfolio of AI-enabled devices and boost the pace of development of next-generation AI tools.
GE HealthCare's Voluson Expert and Voluson Signature ultrasound devices come equipped with SonoLystlive and SonoLyst X/IR, which are powered by ScanNav Assist AI technology developed by Intelligent Ultrasound. Voluson SWIFT is currently offering SonoLyst as well. GE HealthCare gains an AI innovation pipeline by purchasing this business, which will aid in advancing future research and achieving long-term efficiencies.
In order to propel AI-enabled image recognition and innovation for GE HealthCare Women's Health ultrasound equipment as well as throughout the broader portfolio, the company aims to welcome the team of research and development specialists from Intelligent Ultrasound. The acquisition of Caption Health by GE HealthCare in 2023 also brought additional capabilities in AI-enabled image guiding and AI development experience to support early disease diagnosis in other areas.
The technological solutions from Intelligent Ultrasound are more important for relieving burdens placed on sonographers. As exams are becoming more complex, the majority of hospitals report radiology technologist shortagesand significant numbers of sonographers report work-related musculoskeletal disorders due to workload and repetitive motions, among other factors. Streamlined workflows and AI-enabled protocols can reduce manual processes, provide greater reproducibility between users and allow clinicians to focus more on patient care.
The consummation of the transaction is subject to customary closing conditions and is expected to close in the fourth quarter of 2024. GE HealthCare intends to fund this transaction with cash on hand.
GE Healthcare’s Past Acquisitions & Partnerships
GE Healthcare has several partnership agreements in place that provide long-term customers for its products and services. It is also focused on acquiring companies that will help it strategically drive growth in the future. In May, the company and Medis Medical Imaging recently announced their collaboration, which is intended for the the process of advancing precision care for coronary artery disease diagnosis and therapy.
In April, GE Healthcare announced the expansion of its relationship with Elekta, which is aimed to accelerate innovation in software solutions that will likely improve workflows, increase throughput and enhance user experience for clinicians.
In March, GE Healthcare acquired MIM Software and added AI-based solutions for the practice of radiation oncology, molecular radiotherapy, diagnostic imaging, and urology at imaging centers, hospitals, specialty clinics and research organizations worldwide. In 2023, GE Healthcare inked a multi-year agreement with Advantus Health Partners that will expand access to healthcare technology management services. In the same year, the company acquired Caption Health, expanding access to AI-guided ultrasound screening for novice users.
Industry Prospects
Per a report by Precedence Research, the global AI in the healthcare market was estimated to be $15.1 billion in 2022 and is anticipated to surpass $187.95 billion by 2030 at a CAGR of 37%. Factors like the growing adoption of digital technologies in the healthcare sector and the increased patient pool at hospitals are likely to drive the market.
Given the market potential, the latest acquisition is expected to provide a significant boost to GE HealthCare’s business globally.
Notable Developments
GE HealthCare recently announced plans to evolve its long-term AI partnership with Mass General Brigham’s commercial AI business and Mass General Brigham AI. Through these collaborations, the company aims to integrate medical imaging foundation models into its AI research work, with a strong focus on responsible AI practices.
The company also announced the publication of data that depicts its AI models’ ability to predict patient responses to immunotherapies accurately. The study collected clinical data to predict the effectiveness and toxicity of cancer immunotherapy accurately. A pan-cancer sample's data revealed that the company’s AI models' accuracy ranged from 70% to 80%.
GE HealthCarerecently used NVIDIAtechnology to develop its recent research model —SonoSAMTrack. This builds upon its long-term AI collaboration with NVIDIA. SonoSAMTrack combines a promptable foundation model for segmenting objects on ultrasound images called SonoSAM.
Price Performance
In the past six months, GEHC shares have gained 8.5% against the industry’s fall of 12.1%. The S&P 500 has gained 13.2% in the same time frame.
Image Source: Zacks Investment Research
Zacks Rank & Stocks to Consider
GEHC carries a Zacks Rank #3 (Hold) at present.
Some better-ranked stocks in the broader medical space that have announced quarterly results are Elevance Health, Inc. (ELV - Free Report) , Hologic (HOLX - Free Report) and Universal Health Services (UHS - Free Report)
Elevance Health, carrying a Zacks Rank of 2 (Buy) at present, has an estimated long-term growth rate of 12.2%. ELV’s earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 2.8%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Elevance Health’s shares have rallied 22.1% compared with the industry’s 5.5% rise in the past year.
Hologic, carrying a Zacks Rank of 2 at present, has an estimated long-term growth rate of 7.4%. Its earnings surpassed estimates in each of the trailing four quarters, delivering an average surprise of 4.94%.
Hologic’s shares have risen 0.3% year to date compared with the industry’s 4.7% growth.
Universal Health Services has an Earnings ESP of +2.91% and a Zacks Rank of 2, at present. UHS has an estimated earnings growth rate of 30.5% for 2024.
UHS’ earnings surpassed estimates in each of the trailing four quarters, delivering an average surprise of 8.12%.
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GE HealthCare (GEHC) New Deal to Aid Its Ultrasound Portfolio
GE HealthCare Technologies (GEHC - Free Report) recently announced that it has entered into an agreement to acquire Intelligent Ultrasound Group PLC’s (Intelligent Ultrasound) clinical artificial intelligence (AI) software business for a total consideration of approximately $51 million. With integrated AI-driven picture analysis tools, Intelligent Ultrasound is a leader in making ultrasound more intelligent and effective.
With the acquisition of the business, GE HealthCare intends to integrate the technology solutions throughout its ultrasound range, bolstering its capabilities with technological solutions that facilitate better workflows and increased user-friendliness for the advantage of both patients and physicians. Intelligent Ultrasound is likely to carry on with a fresh emphasis on its state-of-the-art, high-fidelity ultrasound simulation technology intended to improve ultrasound education following the sale of its clinical AI business.
Acquisition Benefits for GE Healthcare
GE Healthcare is likely to welcome the innovative technology from Intelligent Ultrasound and integrate the latter’s solutions into its systems to aid clinicians in improving workflow, reducing repetitive tasks and simplifying exams. The technological solutions are likely to enhance GE Healthcare’s portfolio of AI-enabled devices and boost the pace of development of next-generation AI tools.
GE HealthCare's Voluson Expert and Voluson Signature ultrasound devices come equipped with SonoLystlive and SonoLyst X/IR, which are powered by ScanNav Assist AI technology developed by Intelligent Ultrasound. Voluson SWIFT is currently offering SonoLyst as well. GE HealthCare gains an AI innovation pipeline by purchasing this business, which will aid in advancing future research and achieving long-term efficiencies.
In order to propel AI-enabled image recognition and innovation for GE HealthCare Women's Health ultrasound equipment as well as throughout the broader portfolio, the company aims to welcome the team of research and development specialists from Intelligent Ultrasound. The acquisition of Caption Health by GE HealthCare in 2023 also brought additional capabilities in AI-enabled image guiding and AI development experience to support early disease diagnosis in other areas.
The technological solutions from Intelligent Ultrasound are more important for relieving burdens placed on sonographers. As exams are becoming more complex, the majority of hospitals report radiology technologist shortagesand significant numbers of sonographers report work-related musculoskeletal disorders due to workload and repetitive motions, among other factors. Streamlined workflows and AI-enabled protocols can reduce manual processes, provide greater reproducibility between users and allow clinicians to focus more on patient care.
The consummation of the transaction is subject to customary closing conditions and is expected to close in the fourth quarter of 2024. GE HealthCare intends to fund this transaction with cash on hand.
GE Healthcare’s Past Acquisitions & Partnerships
GE Healthcare has several partnership agreements in place that provide long-term customers for its products and services. It is also focused on acquiring companies that will help it strategically drive growth in the future. In May, the company and Medis Medical Imaging recently announced their collaboration, which is intended for the the process of advancing precision care for coronary artery disease diagnosis and therapy.
In April, GE Healthcare announced the expansion of its relationship with Elekta, which is aimed to accelerate innovation in software solutions that will likely improve workflows, increase throughput and enhance user experience for clinicians.
In March, GE Healthcare acquired MIM Software and added AI-based solutions for the practice of radiation oncology, molecular radiotherapy, diagnostic imaging, and urology at imaging centers, hospitals, specialty clinics and research organizations worldwide. In 2023, GE Healthcare inked a multi-year agreement with Advantus Health Partners that will expand access to healthcare technology management services. In the same year, the company acquired Caption Health, expanding access to AI-guided ultrasound screening for novice users.
Industry Prospects
Per a report by Precedence Research, the global AI in the healthcare market was estimated to be $15.1 billion in 2022 and is anticipated to surpass $187.95 billion by 2030 at a CAGR of 37%. Factors like the growing adoption of digital technologies in the healthcare sector and the increased patient pool at hospitals are likely to drive the market.
Given the market potential, the latest acquisition is expected to provide a significant boost to GE HealthCare’s business globally.
Notable Developments
GE HealthCare recently announced plans to evolve its long-term AI partnership with Mass General Brigham’s commercial AI business and Mass General Brigham AI. Through these collaborations, the company aims to integrate medical imaging foundation models into its AI research work, with a strong focus on responsible AI practices.
The company also announced the publication of data that depicts its AI models’ ability to predict patient responses to immunotherapies accurately. The study collected clinical data to predict the effectiveness and toxicity of cancer immunotherapy accurately. A pan-cancer sample's data revealed that the company’s AI models' accuracy ranged from 70% to 80%.
GE HealthCarerecently used NVIDIAtechnology to develop its recent research model —SonoSAMTrack. This builds upon its long-term AI collaboration with NVIDIA. SonoSAMTrack combines a promptable foundation model for segmenting objects on ultrasound images called SonoSAM.
Price Performance
In the past six months, GEHC shares have gained 8.5% against the industry’s fall of 12.1%. The S&P 500 has gained 13.2% in the same time frame.
Image Source: Zacks Investment Research
Zacks Rank & Stocks to Consider
GEHC carries a Zacks Rank #3 (Hold) at present.
Some better-ranked stocks in the broader medical space that have announced quarterly results are Elevance Health, Inc. (ELV - Free Report) , Hologic (HOLX - Free Report) and Universal Health Services (UHS - Free Report)
Elevance Health, carrying a Zacks Rank of 2 (Buy) at present, has an estimated long-term growth rate of 12.2%. ELV’s earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 2.8%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Elevance Health’s shares have rallied 22.1% compared with the industry’s 5.5% rise in the past year.
Hologic, carrying a Zacks Rank of 2 at present, has an estimated long-term growth rate of 7.4%. Its earnings surpassed estimates in each of the trailing four quarters, delivering an average surprise of 4.94%.
Hologic’s shares have risen 0.3% year to date compared with the industry’s 4.7% growth.
Universal Health Services has an Earnings ESP of +2.91% and a Zacks Rank of 2, at present. UHS has an estimated earnings growth rate of 30.5% for 2024.
UHS’ earnings surpassed estimates in each of the trailing four quarters, delivering an average surprise of 8.12%.