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Cardinal Health's (CAH) Latest Launch to Enhance Neonatal Feeding
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Cardinal Health, Inc. (CAH - Free Report) recently launched its next-generation NTrainer System 2.0. The medical device is expected to help in reducing the neonatal intensive care unit (NICU) length of stay for premature and newborn infants.
The NTrainer System 2.0 is currently the only FDA Class II biofeedback device designed to help newborns and infants born prematurely develop their non-nutritive sucking skills needed for independent oral feeding.
The latest launch is expected to significantly strengthen Cardinal Health’s Medical business.
Significance of the Launch
The NTrainer System is expected to improve vital pre-feeding skills in newborns and preterm infants, known as non-nutritive suck (NNS). NNS is crucial for the safe transition from feeding tubes to breast or bottle. This is a developmental milestone for preterm infants and has been recommended by the American Academy of Pediatrics as the criterion for discharge from the NICU. Cardinal Health's NTrainer has been clinically proven to improve feeding outcomes while also reducing the length of NICU stay by utilizing its patented technology for improving NNS proficiency.
Also, the NTrainer System provides clinicians with the required objective data via real-time assessment technology to track the progress of an infant in developing pre-feeding skills. This is also likely to assure parent about their infants' progress and potential to thrive after discharge.
Per management, the NTrainer System is expected to aid some of the most vulnerable patients at the beginning of life via the biofeedback device to improve NNS patterns in newborns and infants born prematurely.
Industry Prospects
Per a report by Spherical Insights, the global biofeedback instrument market was valued at $165.4 million in 2022 and is anticipated to reach $263.2 million by 2032 at a CAGR of approximately 4.8%. Factors like the increased prevalence of stress-related mental diseases and the growing need for improving vital pre-feeding skills in newborns and preterm infants are expected to drive the market.
Given the market potential, the latest launch is likely to provide a significant boost to Cardinal Health's business.
Recent Developments in Medical Segment
This month, Cardinal Health reported its fourth-quarter fiscal 2023 results, wherein it recorded a solid uptick in its overall top line. The company also recorded significant improvement in the Medical segment, driven by the execution of its Medical Improvement Plan.
In June, Cardinal Health announced its plans to build a new distribution center in the Greenville, SC, area to support its at-Home Solutions business.
In May, Cardinal Health Canada announced plans to open a new distribution center in the Greater Toronto Area. This was expected to expand its distribution footprint to nine strategic locations to better meet the medical and surgical product demands of the Canadian healthcare system.
Price Performance
Shares of the company have gained 23.7% in the past year compared with the industry’s 13.7% rise and the S&P 500’s 13.8% growth.
Image Source: Zacks Investment Research
Zacks Rank & Key Picks
Currently, Cardinal Health carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader medical space are DaVita Inc. (DVA - Free Report) , HealthEquity, Inc. (HQY - Free Report) and McKesson Corporation (MCK - Free Report) .
DaVita, carrying a Zacks Rank #2 (Buy) at present, has an estimated long-term growth rate of 12.7%. DVA’s earnings surpassed estimates in three of the trailing four quarters and missed once, with an average surprise of 21.4%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
DaVita has gained 19.4% against the industry’s 0.9% decline over the past year.
HealthEquity, carrying a Zacks Rank #2 at present, has an estimated long-term growth rate of 22%. HQY’s earnings surpassed estimates in three of the trailing four quarters and missed once, with an average of 9.1%.
HealthEquity has gained 3.8% against the industry’s 10.9% decline over the past year.
McKesson, carrying a Zacks Rank #2 at present, has an estimated long-term growth rate of 10.7%. MCK’s earnings surpassed estimates in three of the trailing four quarters and missed once, the average surprise being 8.1%.
McKesson has gained 15.2% compared with the industry’s 13.7% rise over the past year.
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Cardinal Health's (CAH) Latest Launch to Enhance Neonatal Feeding
Cardinal Health, Inc. (CAH - Free Report) recently launched its next-generation NTrainer System 2.0. The medical device is expected to help in reducing the neonatal intensive care unit (NICU) length of stay for premature and newborn infants.
The NTrainer System 2.0 is currently the only FDA Class II biofeedback device designed to help newborns and infants born prematurely develop their non-nutritive sucking skills needed for independent oral feeding.
The latest launch is expected to significantly strengthen Cardinal Health’s Medical business.
Significance of the Launch
The NTrainer System is expected to improve vital pre-feeding skills in newborns and preterm infants, known as non-nutritive suck (NNS). NNS is crucial for the safe transition from feeding tubes to breast or bottle. This is a developmental milestone for preterm infants and has been recommended by the American Academy of Pediatrics as the criterion for discharge from the NICU. Cardinal Health's NTrainer has been clinically proven to improve feeding outcomes while also reducing the length of NICU stay by utilizing its patented technology for improving NNS proficiency.
Also, the NTrainer System provides clinicians with the required objective data via real-time assessment technology to track the progress of an infant in developing pre-feeding skills. This is also likely to assure parent about their infants' progress and potential to thrive after discharge.
Per management, the NTrainer System is expected to aid some of the most vulnerable patients at the beginning of life via the biofeedback device to improve NNS patterns in newborns and infants born prematurely.
Industry Prospects
Per a report by Spherical Insights, the global biofeedback instrument market was valued at $165.4 million in 2022 and is anticipated to reach $263.2 million by 2032 at a CAGR of approximately 4.8%. Factors like the increased prevalence of stress-related mental diseases and the growing need for improving vital pre-feeding skills in newborns and preterm infants are expected to drive the market.
Given the market potential, the latest launch is likely to provide a significant boost to Cardinal Health's business.
Recent Developments in Medical Segment
This month, Cardinal Health reported its fourth-quarter fiscal 2023 results, wherein it recorded a solid uptick in its overall top line. The company also recorded significant improvement in the Medical segment, driven by the execution of its Medical Improvement Plan.
In June, Cardinal Health announced its plans to build a new distribution center in the Greenville, SC, area to support its at-Home Solutions business.
In May, Cardinal Health Canada announced plans to open a new distribution center in the Greater Toronto Area. This was expected to expand its distribution footprint to nine strategic locations to better meet the medical and surgical product demands of the Canadian healthcare system.
Price Performance
Shares of the company have gained 23.7% in the past year compared with the industry’s 13.7% rise and the S&P 500’s 13.8% growth.
Image Source: Zacks Investment Research
Zacks Rank & Key Picks
Currently, Cardinal Health carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader medical space are DaVita Inc. (DVA - Free Report) , HealthEquity, Inc. (HQY - Free Report) and McKesson Corporation (MCK - Free Report) .
DaVita, carrying a Zacks Rank #2 (Buy) at present, has an estimated long-term growth rate of 12.7%. DVA’s earnings surpassed estimates in three of the trailing four quarters and missed once, with an average surprise of 21.4%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
DaVita has gained 19.4% against the industry’s 0.9% decline over the past year.
HealthEquity, carrying a Zacks Rank #2 at present, has an estimated long-term growth rate of 22%. HQY’s earnings surpassed estimates in three of the trailing four quarters and missed once, with an average of 9.1%.
HealthEquity has gained 3.8% against the industry’s 10.9% decline over the past year.
McKesson, carrying a Zacks Rank #2 at present, has an estimated long-term growth rate of 10.7%. MCK’s earnings surpassed estimates in three of the trailing four quarters and missed once, the average surprise being 8.1%.
McKesson has gained 15.2% compared with the industry’s 13.7% rise over the past year.