It’s being half a decade since IoT has made its presence felt and now its popularity has spread to different spheres. Investors witnessing the story of five long glorious years of IoT stocks currently look confident enough before vouching for any.
There are a large number of IoT companies, which are making the world look smarter, smaller and well connected. However, the best part is that its benefits are not limited to the technology space alone. We see a number of other industries benefiting from it including the medical device space.
If you are not conviced yet, investors are almost dumbfounded by the colossal 259.3% surge (since 2014) in medical device Internet of Things stock, Dexcom (DXCM - Free Report) . This smart glucose monitoring device maker has had a huge impact on the investment world. It is time for us to wake up to the latest revolution in technology — the Internet of Medical Things (IoMT) or Medical Internet of Things (MIoT).
Consider a situation when you get a report on your body’s hydration level just by clicking on the smart water bottle app on your mobile phone. Another smart IoMT device emerging fast is Wireless Vital Sign Monitoring system, providing wireless continuous beat-by-beat blood pressure reading. The same app also measures heart rate, blood oxygen level and other physiological parameters. Smart stethoscope, smart injection device, smart thermostats or advanced hearing aids are a few other IoMT devices through which the medical device industry is fast shifting from reactive patient care to a proactive one.
Another important new-age IoMT device is the smart pill. These oral medications with ingestible sensors for gastrointestinal healthcare are commonly used in patients with dementia or any other mental illness. In this regard, Medtronic's (MDT - Free Report) SmartPill motility testing system deserves a mention.
IoMT is not limited to a single device. Going by an article of Isabel Healthcare, IBM’s Watson Health has teamed up with Thomas Jefferson University in Philadelphia to create a smart hospital room for the three hospitals the university oversees. This concept has come into focus on growing demand for remote patient monitoring and chronic disease management.
5G to be a Game Changer
As Jamie Carter says, “Never mind the 'things', it's the data they create which is vital.”
The entire concept of IoMT is based on Internet-connected devices. Undoubtedly, the rise of cloud platforms, phones, phablets, tablets and other smart devices as well as apps has made acceptance of IoMT easier among the masses. In fact, big medical and non-MedTech players are all waiting for the next wave of mobile technology, 5G, which is expected to take IoMT to an all new level. Per a Medical Device Diagnostic Industry report, the “5G capability will allow for much more efficient and prompt device-to-device communication, thus making the medical Internet of things an operational reality.”
Industry Trend and Prospects
Going by a recent article by Data Bridge Market Research, the global IoMT market is expected to register CAGR of 38.67% in the 2019-2026 period.
World Telecommunication Development Conferences projects that by 2020, 40% of IoT-related technology will be health-related, ahead of any other category. Not only that, by this period, IoMT will take up around $117 billion market share.
Non-MedTech Players Also Grabbing the Opportunity
Needless to say, this enormous prospect is luring even non-MedTech players. Late last year, Apple (AAPL - Free Report) gained FDA approval for Apple Watch 4 that has ECG app and provides irregular heart rhythm notification. Samsung's S-Patch ECG provides easier ECG monitoring. These are all strong indications that investors should start to focus on IoMT centric investment.
2 MedTech Stocks to Watch Out For
Below we have highlighted two stocks from the medical devices space (other than Dexcom) that are quite capable of leveraging IoMT market opportunities.
A few years back, this medical device major entered into a global, multi-year collaboration with Qualcomm Incorporated to jointly develop future generation continuous glucose monitoring (CGM) systems to improve health outcomes for people with diabetes. This apart, Medtronic’s patient-monitoring business Cardiocom inked a partnership with LHC Group to develop integrated telehealth services.
This Zacks Rank #2 (Buy) stock has skyrocketed 88.7% in the past five years. Its expected earnings growth rate of 6.5% for the current year is ahead of the industry average of 5.5%.
Boston Scientific (BSX - Free Report)
This company is fast gaining traction in the field of MIoT. With the help of mobile network, the company is currently extracting patients' data wirelessly from implanted pacemakers and is transmitting it to healthcare providers.
Shares of this Zacks Rank #3 (Hold) company have gained more than 240% over the past five years. The expected earnings growth rate of 14.5% is ahead of the industry average of 9.7%.
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