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Omnicell (OMCL) Opens New Software Development Center in India

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Omnicell, Inc. (OMCL - Free Report) recently opened a new software development center through its subsidiary based in Bangalore, India. The company’s new center will focus on product innovation to advance its strategy to deliver the cloud-based infrastructure in order to support the Autonomous Pharmacy. This new center is likely to expand the company’s cloud-based solutions portfolio.

This new software development center will focus on Omnicell’s cloud strategy and its suite of cloud-based hardware, software and technology-enabled services designed to enable healthcare providers improve quality, reduce costs and increase human efficiency. This single cloud-based platform and integrating pharmacy systems will permit healthcare organizations to navigate the complexities of medication management and drive stronger, data-driven results.

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Ved Singh, who has more than 24 years of expertise in building products across cloud-based artificial intelligence platforms, enterprise software, and mobile applications, will lead the new Omnicell India software development center. Singh joined Omnicell as the Vice President of Software Engineering.

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Notably, Omnicell is assisting providers across the continuum of care in realizing the potential of Autonomous Pharmacy by replacing error-prone manual processes with intelligent technology and automated workflows. Omnicell’s medication management solutions utilize a powerful mix of hardware, software, and technology-enabled services, delivered through a cloud platform, to enhance quality, lower costs and boost human efficiency.

Industry Prospects

Per a report published in Mordor Intelligence, the healthcare cloud computing market is expected to see a CAGR of 14.12% during 2021-2026. Factors driving market growth include growing access to advanced technology such as machine learning; increasing adoption of information technology in the healthcare sector; and use of cloud for lowering cost and improving scalability, storage and flexibility. Further, the COVID-19 pandemic is expected to have an overall positive effect on the market.

Given the substantial market prospects, Omnicell’s new software development center intended to expand its cloud based portfolio seems strategic.

Notable Developments

In August 2021, Omnicell announced the latest enhancements to its industry-leading portfolio of medication management solutions. These new capabilities, included in the company’s Summer 2021 Release, focus on superior customer experience and innovation to drive maximum value sooner; deliver improved workflow efficiency, expanded automation, and enhanced medication management intelligence.

In July 2021, the company entered into a definitive agreement to acquire FDS Amplicare’s business for a total aggregate cash consideration of $177 million, subject to the fulfillment of customary adjustments. This buyout is expected to add a comprehensive and differentiated suite of financial management, analytics, and population health solutions to Omnicell’s EnlivenHealth division. Per management, the acquisition strengthens the company’s Advanced Services portfolio and supports its fully autonomous pharmacy vision.

In the same month, Omnicell’s long-time partner Spartanburg Regional Healthcare System selected the company’s medication management platform to enhance efficiency, control and safety across the care continuum. Through this collaboration, Omnicell’s Central Pharmacy Dispensing and IV Compounding Services will aid Spartanburg Regional in its journey toward zero-error medication management and the fully autonomous pharmacy.

Share Price Performance

The stock has outperformed its industry over the past year. It has rallied 128% against the industry’s 8.7% decline.

Zacks Rank and Other Key Picks

Currently, Omnicell carries a Zacks Rank #2 (Buy).

A few better-ranked stocks from the broader medical space include Henry Schein, Inc. (HSIC - Free Report) , IDEXX Laboratories, Inc. (IDXX - Free Report) and Envista Holdings Corporation (NVST - Free Report) , each sporting a Zacks Rank #2. You can see the complete list of today’s  Zacks #1 (Strong Buy) Rank stocks here.

Henry Schein has a long-term earnings growth rate of 13.9%.

IDEXX has a long-term earnings growth rate of 19.9%.

Envista Holdings has a long-term earnings growth rate of 27.4%.

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