Koninklijke Philips ( PHG Quick Quote PHG - Free Report) is benefiting from an expanding partner base. The company recently announced a 12-year strategic technology agreement with IJsselland Hospital, focusing primarily on digitization, optimization and innovation across patient monitoring and radiology solutions. Being the technology partner in the deal, Phillips will provide improved care for patients and care providers at IJsselland Hospital and also in the surrounding region. Phillips and IJsselland also intend to expand their existing home monitoring partnership, especially for patients with COPD and heart failure. For this, Phillips will provide the clinical and patient support software, which helps implement remote health care programs and facilitates collaborations between different healthcare providers. With the divestiture of its Domestic Appliances business, Philips has evolved in the market as a pure healthcare provider. The company is benefitting from the robust demand of Diagnostic Imaging, Ultrasound and Hospital patient monitoring systems. Additionally, a growing focus on telehealth solutions is only expected to boost Phillip’s growth in the near future. Partnerships Driving Top Line
Phillips is pursuing strategic partnerships to broaden its product offerings, enter new markets, attract clients and expand geographically.
Earlier this year, Phillips announced a collaboration with Cognizant ( CTSH Quick Quote CTSH - Free Report) to develop end-to-end digital health solutions. These digital health solutions will enable life science companies and healthcare organizations to improve patient care and accelerate clinical trials. The strategic alliance brought together Cognizant’s digital engineering expertise and Phillips HealthSuite, to maintain and deliver advanced digital health solutions at scale using big data. HealthSuite, which is built on Amazon’s ( AMZN Quick Quote AMZN - Free Report) cloud platform Amazon Web Services (AWS), securely stores critical healthcare data and provides both AI capabilities and advanced data analytics. HealthSuite integrates more than 100 types of medical devices and over 145 billion clinical images are archived on the cloud platform. Amazon’s AWS helps HealthSuite provide exceptional data security and privacy off the shelf to consumers all around the world. As part of the partnership, Cognizant will build, utilize, implement and operate client-specific applications on Philips HealthSuite. These customized solutions are scalable and will involve advanced data analytics, which will enhance both patient and clinician experience. Philips’s growth trajectory has been driven by an expanding partner base. Apart from Cognizant, the medical devices manufacturer recently inked a partnership with likes of NICO.LAB, the Spanish National Center for Cardiovascular Research (“CNIC”), Elekta, and Akumin, among others.
Acquisitions have been a key catalyst for Phillip’s prospects.
Earlier this month, Phillips signed an agreement to acquire the U.S.-based medical technology company Vesper Medical Inc. The acquisition will expand the company’s portfolio of therapeutic and diagnostic devices, by adding an advanced venous stent portfolio used for treating deep venous disease. The addition of Vesper will help Phillips offer a complete procedural solution for the treatment of peripheral artery disease. Vesper Medical will also add a venous stenting solution to Philips’ strong IVUS portfolio offerings to address the root cause of chronic deep venous disease. Phillips already has a peripheral vascular portfolio and offers live 2D/3D interventional imaging, combined with intravascular ultrasound catheters, providing guidance and visualization necessary for optimal diagnosis and treatment. Via the acquisition of Intact Vascular in 2020, Philips now offers the Tack implantable dissection repair device, which restores blood flow in small limb vessels. Unquestionably, the acquisitions will expand Phillip’s total addressable market and customer base. On a comparable basis, Diagnosis & Treatment sales increased 10% from the year-ago quarter to €2.15 billion in the last reported quarter. Zacks Rank & Stock to Consider
Phillips currently carries a Zacks Rank #4 (Sell).
One of the top-ranked stocks in the Medical sector is AMN Healthcare Services ( AMN Quick Quote AMN - Free Report) , sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here. AMN Healthcare, engaged in providing staffing and total talent solutions, has a trailing four-quarter earnings surprise of 19.5%, on average. The Zacks Consensus Estimate for AMN Healthcare’s current financial year sales and earnings per share suggests an increase of 57.18% and 113.41%, respectively, from the year-ago period’s tallies. AMN has a long-term earnings growth rate of 16.22%.