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GE HealthCare's (GEHC) Tie-Up to Boost Female Pelvic Healthcare

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GE HealthCare Technologies Inc. (GEHC - Free Report) recently collaborated with the University of California San Diego School of Medicine. The tie-up aims to investigate advanced magnetic resonance imaging (MRI) protocols and techniques for female-specific diseases and conditions of the pelvis and develop comprehensive educational materials for clinicians.

The Center for Translational Imaging and Precision Medicine at the University of California San Diego School of Medicine will be the collaborating site to conduct the project. The project encompasses a wide spectrum of diseases of the female pelvis, including better visualization of endometriosis and ovarian cancer using MRI techniques in both clinical and academic research settings.

GE HealthCare expects the collaboration to enhance women’s pelvic healthcare and increase access to innovative imaging solutions for female patients, enabling faster diagnosis and treatment and improved patient care. This is expected to be a significant stepping stone for the company’s Imaging segment.

Rationale Behind the Collaboration

Per GE HealthCare, pelvic diseases and conditions in female patients are often understudied, misdiagnosed and ineffectively treated, which can be debilitating for women and cause a substantial economic burden for healthcare systems, hospitals and patients. Per the company’s estimates, pelvic pain accounts for approximately 20% of all outpatient appointments in secondary care for female patients and an estimated $882 million in outpatient management expenses in the United States.

Per the company, the goal of the project is to boost women’s pelvic health, thereby filling an important gap in medical research and care.

Management also believes that the project results could support more standard adoption of advanced imaging techniques and enable clinicians to make more informed decisions. The project is also expected to aid in bridging an important gap in women’s healthcare and increasing access to innovative solutions for women worldwide.

Industry Prospects

Per a report by MarketsandMarkets, the global diagnostic imaging market size was $26.5 billion in 2023 and is projected to reach $34.6 billion in 2028 at a CAGR of 5.5%. Factors like technological advancements, the rising prevalence of diseases and the increasing focus on early diagnosis are likely to drive the market.

Given the market potential, the latest collaboration is expected to provide a significant boost to GE HealthCare’s business.

Notable Developments

Last month, GE HealthCare reported its second-quarter 2024 results, wherein it registered an uptick in its Imaging segment’s revenues in the Rest of World region.

The same month, GE HealthCare introduced MIM Symphony HDR Prostate to support high dose-rate (HDR) brachytherapy. The solution aims to improve patient outcomes by providing direct tumor visualization from MRI scans during live ultrasound procedures for HDR prostate treatments.

In June, GE HealthCare, along with MediView XR Inc., announced the successful first installation and clinical cases using the OmnifyXR Interventional Suite at North Star Vascular and Interventional in Minneapolis, MN.

Price Performance

Shares of GE HealthCare have gained 24.1% in the past year against the industry’s 5.3% decline. The S&P 500 has witnessed 27.5% growth in the said time frame.

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Zacks Rank & Key Picks

Currently, GE HealthCare carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the broader medical space are DaVita Inc. (DVA - Free Report) , Quest Diagnostics Incorporated (DGX - Free Report) and Boston Scientific Corporation (BSX - Free Report) .

DaVita, sporting a Zacks Rank #1 (Strong Buy) at present, has an estimated long-term growth rate of 17.5%. DVA’s earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 24.2%. You can see the complete list of today’s Zacks #1 Rank stocks here.

DaVita’s shares have gained 49.4% compared with the industry’s 21% rise in the past year.

Quest Diagnostics, carrying a Zacks Rank of 2 (Buy) at present, has an estimated long-term growth rate of 6.2%. DGX’s earnings surpassed estimates in each of the trailing four quarters, with the average being 3.3%.

Quest Diagnostics has gained 13.7% compared with the industry’s 21% rise in the past year.

Boston Scientific, carrying a Zacks Rank of 2 at present, has an estimated long-term growth rate of 12.6%. BSX’s earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 7.2%.

Boston Scientific’s shares have rallied 56.1% compared with the industry’s 11.9% rise in the past year.

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