3D Systems (DDD - Free Report) recently announced that it has received additional clearance from the FDA to commercially use its D2P (DICOM-to-PRINT) software. This will allow clinicians to generate 3D printed diagnostic patient-specific anatomic models.
Reportedly, 3D Systems is currently the only company that integrates its own software into printers to offer a solution for diagnostic purposes in medical specialties, including cardiovascular, craniofacial, gastrointestinal, genitourinary, neurological and musculoskeletal applications.
Anatomic models can be produced using various 3D Systems printing technologies such asColorJet Printing, MultiJet Printing, Stereolithography and Selective Laser Sintering.
Per Grand View Research, the global Point of Care (POC) market is expected to witness a CAGR of 3.3% from 2019 to 2025. Moreover, per Reports and Data, the global POC market is expected to hit $50.51 billion by 2026.
New product launches, increased strategic partnerships in the diagnostic market, improved funding for research and development of POC testing devices, and high number of diseases due to increase in geriatric population are key factors driving the market.
D2P’s automatic segmentation tools enable medical practitioners to create accurate, digital 3D anatomic models from medical imaging data. With the additional 510 (k) clearance, D2P will be able to better serve the growing demand for in-house manufactured 3D segmentation solutions that can create 3D printed models.
3D Printing in Healthcare
3D printing is revolutionizing the healthcare industry, making mass production of prosthetics and dental models, bioprinting, tissue engineering easier. It has also made artificially 3D printed skin a possibility.
Per Allied Market Research, the global 3D printing healthcare market is projected to reach $3.7 billion at a CAGR of 18.2% from 2019 to 2026.
In the last reported quarter, excluding the order of a large enterprise customer, healthcare revenues grew nearly 11.4%, driven by simulator, dental and advanced manufacturing. Management remains optimistic about the overall demand trends for healthcare, including the company’s NextDent 5100 3D printer.
Consistent demand for printers and materials for healthcare customers is fueling growth of this segment.
Prospects Bright Despite Competition
Intensifying competition in the 3D printing space, especially healthcare market from the likes of HP (HPQ - Free Report) , Stratasys (SSYS - Free Report) and General Electric (GE - Free Report) continues to be an overhang.
In May this year, HP expanded its collaboration deal with direct-to-consumer orthodontics company, SmileDirectClub, to develop 3D-printed teeth molds.
Moreover, Stratasys’ healthcare 3D printing solutions help produce custom anatomical models from patient CT scans for pre-surgery practice, medical training and patient education.
Nonetheless, 3D Systems’ strong technological expertise and tenure in additive manufacturing will help it benefit immensely from the market’s prospects. Per MarketsandMarkets, 3D Printing Market is expected to reach $34.8 billion by 2024 at a CAGR of 23.25%, which bodes well for the company, given its stronghold in the market.
3D Systems currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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