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GEHC Stock Falls Despite FDA Clearance for SIGNA MAGNUS MRI System

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GE HealthCare Technologies (GEHC - Free Report) recently announced the receipt of FDA clearance for its SIGNA MAGNUS, a 3.0T high-performance, head-only magnetic resonance imaging (MRI) scanner.

This new innovative system has the potential to help detect neurological, oncological and psychiatric conditions by providing new clinical imaging and neuroscience capabilities. With SIGNA MAGNUS, GEHC is likely to provide neuroradiologists and neuroscience researchers with a tool that supports advanced imaging and biomarker research.

Likely Trend of GEHC Stock Following the News

Following the announcement, shares of the company moved nearly 0.8% south to $84.18 at yesterday’s close. However, in the year-to-date period, GEHC shares have rallied 8.8% compared with the industry’s 14.5% growth. The S&P 500 increased 26% in the same time frame.

Meanwhile, GEHC currently has a market capitalization of $38.8 billion. It has an earnings yield of 5.1%, which is much higher than the industry’s yield of 1.2%. In the last reported quarter, GEHC delivered an earnings surprise of 7.6%.

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More on the Features & Benefits of GEHC’s SIGNA MAGNUS 3.0T MRI System

The asymmetrical design of the SIGNA MAGNUS 3.0T MRI System shifts the gradient isocenter to the patient edge of the coil rather than its geometric center, enabling patient head access and avoiding shoulder width constraints. This head-only design allows MAGNUS to deliver a gradient amplitude and slew rate far surpassing those of conventional 60cm or 70cm bore whole-body MRI systems, marking a significant advancement in MRI technology for neuroimaging applications.

Shorter scan periods and ultra-high anatomical resolution are made possible by the SIGNA MAGNUS system's improved capabilities. Through developments like Oscillating Gradient Diffusion Encoding, it is possible to observe brain function, microstructure and microvasculature, a capability that can be crucial for neurological oncology.

GEHC intends to use SIGNA MAGNUS' high-gradient performance to enable sophisticated research scanning, including slow cerebral spinal fluid flow measurement, high B-value diffusion imaging and fMRI for examining the blood oxygen level-dependent response. This is likely to be one of the revolutionary advancements in the field of neuroscience research.

SIGNA MAGNUS is likely to be available for both forward production and upgrades from compatible SIGNA Premier systems. The existing facilities can upgrade to this advanced technology, expanding access to high-performance imaging without the need for entirely new systems, additional power or cooling.

More on the HyperG Gradient Technology

With the introduction of HyperG gradients, one of the most effective gradient coils available in the SIGNA MAGNUS system, GE HealthCare demonstrated leadership in high-performance gradient technology. The HyperG gradient coil's new asymmetric head-only design maximizes the system's gradient performance for clinical and research scanning by causing substantially less peripheral nerve stimulation.

The HyperG gradient technology enables faster image acquisition using the same power requirement as the whole-body SIGNA Premier 3.0T system. Improved gradient strengths lead to enhanced spatial resolution and image clarity. This can result in accurate diagnoses, allowing healthcare providers to detect subtle abnormalities and provide better treatment options.

Favorable Industry Prospects for GEHC

Per a report by Future Market Insight, the global brain imaging and neuroimaging market was estimated to be $13.7 billion in 2023 and is anticipated to surpass $22.4 billion by 2033 at a CAGR of 5.1%.

The brain imaging and neuroimaging market is driven by the rising incidence and prevalence of neurological disorders, increased awareness of neurodegenerative diseases, an increase in traumatic brain injuries and increased applications of brain imaging and neuroimaging in clinical trials.

Given the market potential, the latest FDA clearance of the SIGNA MAGNUS 3.0T MRI System is likely to provide a boost to GEHC’s imaging business.

GEHC’s Recent Developments in Imaging Space

In October, GEHC completed the acquisition of Intelligent Ultrasound Group PLC’s clinical artificial intelligence (AI) software business. This transaction is aimed at improving GEHC’s AI-driven image analysis tools, which are designed to make ultrasound diagnosis smarter and more efficient by enhancing image recognition and streamlining workflows.

In September, GEHC’s MIM Software announced the receipt of FDA clearance for performing Centiloid scaling for positron emission tomography (PET)-based amyloid imaging analysis and quantification. With MIMneuro, a vendor-neutral solution, this new Centiloid scale tool is likely to be able to assist physicians in more accurately determining the density of amyloid plaque in a patient's brain. Amyloid PET radiotracers help visualize amyloid plaque density in patients evaluated for Alzheimer’s disease.

GE HealthCare’s Zacks Rank & Stocks to Consider

GEHC carries a Zacks Rank #3 (Hold) at present.

Some better-ranked stocks in the broader medical space are AngioDynamics (ANGO - Free Report) , Quest Diagnostics (DGX - Free Report) and RadNet (RDNT - Free Report) . Each stock presently carries a Zacks Rank of 2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

ANGO’s earnings surpassed estimates in three of the trailing four quarters and missed once, delivering an average surprise of 31.71%.

AngioDynamics’ shares have lost 19.2% year to date against the industry’s6.1% growth.

Quest Diagnostics has an estimated long-term growth rate of 6.8%. DGX's earnings surpassed estimates in each of the trailing four quarters, with an average surprise being 3.3%.

Quest Diagnostics has gained 42% year to date compared with the industry's 14.9% growth.

RadNet’s earnings surpassed estimates in the trailing four quarters, the average surprise being 98.2%.

RDNT shares have risen 93.7% year to date compared with the industry’s 14.8% growth.


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