Cardinal Health (CAH Quick QuoteCAH - Free Report) announced the launch of SmartGown EDGE Breathable Surgical Gown with ASSIST Instrument Pockets in the United States. The new surgical gown will provide surgical teams with safe and convenient instrument access in the operating room.

The gown, which is exclusively available from CAH, is designed to hold one recommended instrument per pocket during surgical procedures, which should help in handling efficiency and enabling clinical teams to focus on delivering safe patient care.

The gown’s pockets will also help store repeatedly used instruments, leading to reduced instrument handoffs or exchanges during a procedure, while promoting potential time saving and self-sufficiency. The pockets will also help in minimizing potential contamination and unintentional instrument drops outside the sterile area.

The SmartGown is a rated AAMI level 4 protection surgical gown in the United States that should provide a barrier of protection against high fluid exposure and blood-borne pathogens.

It is developed by Cardinal heath in collaboration with Mayo Clinic and co-inventors — Joseph Dearani and Salim Walji — who are heart surgeons.

Price Performance

Shares of Cardinal Health have risen 33.7% year to date compared with the industry's 8.1% growth. The S&P 500 Index has increased 15.2% in the same period.

Image Source: Zacks Investment Research

Industry Prospects

Per a report by Grand View Research, the surgical (hospital) gown market was valued at $4.8 billion in 2022 and is anticipated to reach $12.8 billion by 2030 at a CAGR of approximately 12.9%. Growing number of surgeries globally is a key market driver.

Given the market potential, the latest launch is likely to provide a significant boost to Cardinal Health's business.

Recent Developments

Last month, Cardinal Health announced the launch of its next-generation Kangaroo OMNI enteral feeding pump in the United States. The new pump’s design will provide more options to patients in meeting their personalized needs for enteral feeding.

The same month, the company reported its first-quarter fiscal 2024 results, wherein it recorded a solid uptick in its overall top line. The company also witnessed revenue growth in its Pharmaceutical segment. Recovery in the Medical segment was encouraging.

CAH launched NTrainer System 2.0 in August, to help reduce the length of stay for premature and newborn infants in neonatal intensive care units.

Cardinal Health, Inc. Price

Cardinal Health, Inc. price | Cardinal Health, Inc. Quote

Zacks Rank & Other Stocks to Consider

Cardinal Health currently carries a Zacks Rank #2 (Buy).

Some other top-ranked stocks in the broader medical space are HealthEquity (HQY Quick QuoteHQY - Free Report) , Merit Medical Systems (MMSI Quick QuoteMMSI - Free Report) and Cencora (COR Quick QuoteCOR - Free Report) .

HealthEquity, sporting a Zacks Rank #1 (Strong Buy) at present, has an estimated long-term growth rate of 26.7%. You can see the complete list of today’s Zacks #1 Rank stocks here.

HQY’s earnings surpassed estimates in each of the trailing four quarters, delivering an average surprise of 13.03%. The company’s shares have risen 9.9% year to date against the industry’s 15.2% decline.

Merit Medical Systems, carrying a Zacks Rank #2 at present, has an estimated long-term growth rate of 11.5%. MMSI’s earnings surpassed estimates in each of the trailing four quarters, delivering an average surprise of 14.41%.

The company’s shares have lost 1.2% year to date against the industry’s 8.1% growth.

Cencora, carrying a Zacks Rank #2 at present, has an estimated long-term growth rate of 8.7%. COR’s earnings surpassed estimates in each of the trailing four quarters, delivering an average surprise of 3.45%.

The company’s shares have risen 18.8% year to date against the industry’s 15.2% decline.