Back to top

Analyst Blog

Amid negative news regarding stagnating booking growth and saturated underlying markets for athenahealth, Inc. (ATHN - Analyst Report), the launch of a new product by Epocrates, Inc., an athenahealth subsidiary, should boost investor confidence in the stock.

Epocrates has launched a new mobile application (app), "Epocrates Bugs + Drugs", which combines cloud-based clinical data with a user-friendly mobile interface. The app is designed to locate local bacterial superbugs (bacteria that are resistant to antibiotics) and assist physicians to timely prescribe appropriate antibiotics. The much awaited “Epocrates Bugs + Drugs” is now available for free for iOS 7 devices in the Apple App Store.

As per a report by Centers for Disease Control and Prevention (CDC), more than 2 million individuals in the U.S. contract drug-resistant infections such as E. coli and staph, out of which around 23,000 people die annually. The new Bug + Drug offering from ATHN brings caregivers one step closer to personalized medicine, whereby doctors can identify common and uncommon bugs in the communities where their patients live, and accordingly prescribe the best treatment.

Using the abovementioned mobile app, physicians can easily access athenahealth’s large EHR database of 15 million patients on their mobile phones. The real-time, geography-specific information regarding superbugs prevalent in the location, where a particular patient resides, is a significant advancement in the field of clinical innovation and benefit the entire health system.

Recently, athenahealth entered into a partnership with NextGxDx Inc., the comprehensive online marketplace for genetic testing, to deliver an integrated platform that will help clinicians improve genetic test ordering. The collaboration of the two companies will enable ATHN’s clinicians to avail genetic testing through an integrated EHR platform.

Currently, athenahealth carries a Zacks Rank #5 (Strong Sell). While we strongly recommend avoiding this stock, other better-placed medical stocks that are worth a look include Resmed Inc. (RMD - Analyst Report), Trinity Biotech plc (TRIB - Snapshot Report) and STRAUMANN HLD N AKT (SAUHF). All these stocks carry a Zacks Rank #1 (Strong Buy).

Please login to Zacks.com or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research

Close

Are you a new Zacks Member or a visitor to Zacks.com?

Top Zacks Features

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Zacks.com. Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
SYNAPTICS I… SYNA 78.11 +8.14%
GREEN PLAIN… GPRE 39.41 +5.12%
PILGRIM'S P… PPC 28.82 +3.08%
SKYWORKS SO… SWKS 52.07 +2.58%
CLAYTON WIL… CWEI 109.08 +2.51%