Dutch technology behemoth, Koninklijke Philips N.V. (PHG Quick QuotePHG - Free Report) and Qualcomm Life, Inc., a subsidiary of semiconductor and telecommunications equipment provider Qualcomm Incorporated (QCOM Quick QuoteQCOM - Free Report) , have entered into a partnership to foster the development of “connected health.” This move reflects Philips’ relentless efforts to fortify its healthcare portfolio that comprises a gamut of services ensuring healthy living, preventive care, chronic management and home care of patients.

Despite this development, shares of Philips did not budge much (up a meager 1.3%), closing at $29.31 during the regular trading session on Thursday.

Partnership: A Win-Win for Both

While Philips is bringing connected health informatics, regulated health care cloud data management and analytics to the table, Qualcomm Life is offering its knowhow in medical-grade device connectivity and integration, through this partnership. For health care personnel, this collaboration offers an opportunity to provide improved, scalable and connected care solutions in a secure manner. In particular, Qualcomm is providing “Life’s 2net platform” for Philips’ HealthSuite – a cloud-enabled health ecosystem of devices, apps and digital tools.

This, in turn, will aid HealthSuite to gain access to a wide spectrum of connected medical devices ranging from medication dispensers and medical grade biosensors to blood pressure monitors and blood glucose meters. Also, 2net platform will assist HealthSuite access Philips’ and any third party’s medical devices effortlessly. Leveraging on 2net platform’s competence, Philips can modify and scale connected care programs, insert extra medical devices and obtain informative patient profiles that will, in turn, result in timely diagnosis and improved patient outcomes.

This partnership also benefits Qualcomm substantially, by offering it with a well-reputed, secure, data management and storage solution in the form of Philips HealthSuite. HealthSuite will allow 2net Platform to reap the benefits of health data analytics through data normalization and aggregation. Qualcomm’s customers can now develop applications, store normalized data, manage analytics and perform other such important functions seamlessly.

Healthcare Portfolio to Drive Growth

Philips is gradually evolving as a healthcare company and has significantly enhanced its presence in the healthcare domain over the past couple of quarters. The company has restructured its business into three segments, namely Personal Health, Diagnosis & Treatment and Connected Care & Health Informatics. It also believes that a rise in healthcare and fitness spending will act as a long-term growth driver.

Philips believes that “patient self-management” and “24/7 connectivity to a care network” are two fundamental forces that will redefine healthcare management. With growing adaption of technology in the healthcare sector, home health agencies and other institutions are resorting to connected care for dealing with emergency admissions and readmissions of patients with chronic diseases. The company’s collaboration with Qualcomm Life lays the groundwork for “Internet of Medical Things”, which in turn, will help them address these pressing patient needs, paving the way for future growth.

Philips currently has Zacks Rank #3 (Hold). Some better-ranked stocks in the industry include Daktronics Inc. (DAKT Quick QuoteDAKT - Free Report) and Garmin Ltd. (GRMN Quick QuoteGRMN - Free Report) . Both stocks sport a Zacks Rank #1 (Strong Buy).

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