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Philips (PHG) Adds BlueSeal to its Diagnostic Imaging Portfolio

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Philips (PHG - Free Report) showcased BlueSeal MR Mobile, the world’s first helium-free mobile magnetic resonance imaging (MRI) system, at RSNA 2023.

Notably, the new MRI system, which is designed to enhance diagnostic imaging, requires only 7 liters of liquid helium, offering cost and up-time advantages.

Additionally, the lightweight system, with a 1.5T fully sealed magnet, is intended to provide quick access to MRI exams for patients.

Also, it can be connected with the Philips Radiology Operations Command Center, which offers audio, video and peer-to-peer chat capabilities between technologists and remote imaging experts.

Philips is expected to gain solid traction, especially across remote and rural healthcare providers, on the back of its latest move.

Growth Prospects

The latest move positions the company well to solidify its footprint in the global mobile MRI services market.

Per a Global Market Insights report, the mobile MRI services market is expected to reach $5.1 billion by 2032, exhibiting a CAGR of 4.9% between 2023 and 2032.

A Grand View Research report indicates that the global MRI market size will witness a CAGR of 6.5% during the forecast period of 2024-2030.

Strong prospects in these promising markets will likely aid the company in winning investors’ confidence in the days ahead.

Philips has gained 42.4% on a year-to-date basis against the industry’s decline of 5.8%.

Strengthening Diagnosis & Treatment Portfolio

With BlueSeal MR Mobile, the company strives to bolster its Diagnosis & Treatment offerings.

Apart from this, Philips collaborated with Quibim on an integrated solution using AI-based QP-Prostate software to automate real-time prostate gland segmentation in MR images. This will enhance diagnostic confidence, personalized treatment and better outcomes for patients requiring MR exams, thereby reducing the need for manual procedures.

Further, Philips introduced a super contrast-enhanced ultrasound application for the Epiq Elite ultrasound system, offering 200% better spatial resolution and cost-effectiveness using micro-bubble contrast media.

Additionally, it unveiled Ultrasound Compact 5500CV at the 2023 American Society of Echocardiography Event, offering a portable, compact system that enhances clinical confidence and efficiency in diagnosing and treating cardiac disease.

All the above-mentioned endeavors are expected to strengthen the company’s Diagnosis & Treatment business through portfolio expansions.

In the third quarter of 2023, Philips reported Diagnosis & Treatment revenues of €2.2 billion, registering growth of 6% from the year-ago quarter.

Philips expects the 2023 Diagnosis & Treatment segment’s revenues to witness high-single-digit to double-digit growth.

Strength in the underlined segment will likely aid the company’s overall financial performance in the near term.

Philips expects 2023 comparable sales growth in the band of 6-7%.

Zacks Rank & Stocks to Consider

Currently, Philips carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the broader medical market sector are DaVita (DVA - Free Report) , DexCom (DXCM - Free Report) and Fate Therapeutics (FATE - Free Report) . While DaVita sports a Zacks Rank #1 (Strong Buy), DexCom and Fate Therapeutics carry a Zacks Rank #2 (Buy) each. You can see the complete list of today’s Zacks #1 Rank stocks here.

DaVita shares have gained 32.9% in the year-to-date period. The long-term earnings growth rate for DVA is currently projected at 18.25%

DexCom shares have lost 0.3% in the year-to-date period. DXCM's long-term earnings growth rate is currently projected at 33.59%.

Fate Therapeutics shares have lost 76.6% in the year-to-date period. The long-term earnings growth rate for FATE is currently projected at 29.49%.

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