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4 Internet of Medical Things (IoMT) Stocks to Buy for 2022

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The Internet of Medical Things (IoMT) is swiftly gaining pace as healthcare companies are looking for ways to innovate and keep up with technology to help patients and physicians better monitor and track diseases. The usage of the Internet of Things (IoT) in healthcare has advanced widely in recent years and the pandemic has fueled the rise of IoMT, which many countries have widely deployed as a measure to control the spread of the virus. The segment is recording one of the highest IoT investments and growth.

Here are a few companies like Boston Scientific Inc. (BSX - Free Report) , Medtronic plc (MDT - Free Report) , DexCom, Inc. (DXCM - Free Report) and Syneos Health, Inc. (SYNH - Free Report) that are expected to gain enormously from the advancements in the IoMT space as we head into 2022.

IoMT -- A Healthcare Revolution

IoMT involves the bringing together of technology, medical devices and applications. From surgical instruments to artificial joints and MRI scanners, the MedTech industry designs and manufactures a wide suite of products. Technology is allowing these devices to generate, collect, analyze and transmit data, creating IoMT – a connected infrastructure of health systems and services. Connected medical devices and the IoMT have the potential to transform healthcare and enhance patient outcomes through better disease management and remote monitoring of chronic diseases, improved drug management, and enhanced patient experience while, at the same time, helping to reduce costs.

The COVID-19 outbreak has led to exponential growth in the demand of IoMT devices, which impacted the global market. The pandemic is acting as a catalyst for digital transformation owing to the expansion of applications and opportunities.

Per a report by Market Watch, the global IoMT market is anticipated to reach $142.45 billion by 2026, with a CAGR of 28.9%, on account of the increasing prevalence of chronic diseases.

Pharma and tech companies are now taking things a step further and are collaborating with other tech-enabled companies to make devices that can track chronic and lifestyle-associated diseases like diabetes, which are growing fast. In fact, the scope for innovation in this area is endless such as contact lenses that can detect glucose levels, a device that can monitor caloric intake, bioelectronic medicines that can tackle and maybe treat a wide range of chronic diseases, robotic-assisted surgery.

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Zacks Investment ResearchImage Source: Zacks Investment Research

4 Stocks in Focus

As more deals between pharma and tech companies are announced along with the launch of advanced AI-driven solutions, it makes sense to look at some of the key players in this rapidly evolving area.

Boston Scientific recently initiated the MODULAR ATP clinical trial to assess the safety, performance and effectiveness of the mCRM Modular Therapy System.  The mCRM System consists of two cardiac rhythm management (CRM) devices designed to work together to coordinate therapy: the EMBLEM MRI Subcutaneous Implantable Defibrillator (S-ICD) System and the EMPOWER Modular Pacing System (MPS), which is designed to be the first leadless pacemaker capable of delivering both bradycardia pacing support and antitachycardia pacing. In September 2021, the company acquired the global surgical business of Lumenis -- a privately-held company that develops and commercializes energy-based medical solutions. The acquisition allows Boston Scientific to integrate the Lumenis laser portfolio, including differentiated MOSES technology, with its leading kidney stone management and benign prostatic hyperplasia offerings.

Boston Scientific currently carries a Zacks Rank #3 (Hold). In 2022, BSX’s earnings are expected to grow 14.8%. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

Medtronic is another company that is quite active in the field of IoMT.  In October 2021, Medtronic announced the receipt of CE Mark for the Hugo robotic-assisted surgery (RAS) system, authorizing the sale of the system in Europe. In September 2021, Medtronic announced the latest additions to its minimally-invasive spine surgery ecosystem, making it the only company to combine spinal implants, biologics, navigation, robotics, and AI-powered data for surgeons and patients.

Medtronic currently carries a Zacks Rank #3. In 2022, MDT’s earnings are expected to grow 8.3%.

DexCom is focused on diabetes management, specifically medical devices for continuous glucose monitoring. The company’s G6 system includes an auto-applicator, a sensor and transmitter, and a touch screen receiver displaying real-time glucose data. Per the second-quarter 2021 earnings call, the company recently submitted G7 for CE Mark approval following New Medical Device Reporting Standard in the EU. Apart from this, DexCom received FDA clearance for two crucial software solutions that will help boost its connected ecosystem. The first one is the DexCom real-time API, which makes it possible for third-party developers to incorporate real-time CGM data into their digital health apps and devices. The second one is the company’s app-in-app module that directly integrates with third-party healthcare apps, thereby making managing diabetes easier for Type 2 Non-intensive insulin therapy (NIIT) users.

DexCom currently carries a Zacks Rank #3. In 2022, DXCM’s earnings are expected to grow 23.7%.

Syneos Health recently announced the acquisition of RxDataScience – a healthcare-focused data analytics, data management and artificial intelligence (AI) company. The acquisition brings AI and data engineering expertise, enterprise analytics and technology-enabled solutions to Syneos Health’s portfolio. Combining the company’s end-to-end services and deep behavioral and therapeutic expertise with RxDataScience’s AI and data-science capabilities will generate customer strategies to boost product development. The company, in September, also announced the buyout of a leading technology-enabled clinical trial recruitment and retention company – StudyKIK.  The acquisition enhances Syneos Health’s ability to offer technology and insight-driven solutions. The acquisition strengthens Syneos Health’s patient-direct, technology-enabled solutions portfolio, complementing the latest buyout of Illingworth Research Group and technology collaborations with Ride Health, Science37 and Medable.

Syneos Health currently carries a Zacks Rank #3. In 2022, SYNH’s earnings are expected to grow 16.6%.