GEHC Stock Rises as FDA Clears MIM Software's Centiloid Tool

GE HealthCare Technologies' GEHC MIM Software recently announced the receipt of FDA clearance for performing Centiloid scaling for positron emission tomography (PET)-based amyloid imaging analysis and quantification.

With MIMneuro, a vendor-neutral solution, this new Centiloid scale tool is likely to be able to assist physicians in more accurately determining the density of amyloid plaque in a patient's brain. Amyloid PET radiotracers help visualize amyloid plaque density in patients being evaluated for Alzheimer's disease.

Likely Trend of GEHC Stock Following the News

Following the announcement, shares of the company moved nearly 1.7% north to $88.53 at yesterday's close.

GE HealthCare is one of the leading providers of medical technology, pharmaceutical diagnostics, and digital solutions with a focus on precision care. In March, GE Healthcare acquired MIM Software, which added AI-based solutions for the practice of radiation oncology, molecular radiotherapy, diagnostic imaging, and urology at imaging centers, hospitals, specialty clinics and research organizations worldwide. Owing to the strong potential for the diagnostic imaging market, we expect the market sentiment to remain positive around this news.

Meanwhile, GEHC currently has a market capitalization of $39.63 billion. It has an earnings yield of 4.91% is much higher than the industry's yield of negative (7.12)%. In the last reported quarter, GEHC delivered an earnings surprise of 2.04%.

More on the GEHC's Centiloid Scaling Tool

A significant number of people in the United States develop dementia, with Alzheimer's disease accounting for 60-80% of dementia cases. The condition affects memory, thinking and behavior, and symptoms typically start with mild cognitive impairment and eventually grow severe enough to interfere with daily tasks. A characteristic feature of this condition is the build-up of beta-amyloid protein in the brain, which is connected to tissue loss and cell death.

In order to assist physicians in identifying potential patients for amyloid-targeting therapies, PET imaging makes it possible to visualize and quantify amyloid protein. A global consortium of physicians and scientists created the Centiloid scale with the goal of harmonizing quantitative amyloid imaging analysis throughout radiotracers and organizations.

GE HealthCare's MIM Software now offers MIMneuro with Centiloid scaling, leveraging an automated workflow to help guide users through generating and understanding the quantitative result. The software takes the PET amyloid images, provides clinicians instructions to automatically generate quantitative results, and presents the data in a standardized report for clinicians to review alongside the images. As a result, clinicians can more easily access the quantitative data they need to evaluate patients.

MIMneuro with Centiloid scaling is the latest addition to GE HealthCare's comprehensive suite of products and solutions, which span the Alzheimer's disease care pathway from diagnosis through treatment monitoring.

Favorable Industry Prospects for GEHC

Per a report by Future Market Insight, the global brain imaging and neuroimaging market was estimated to be $13.7 billion in 2023 and is anticipated to surpass $22.4 billion by 2033 at a CAGR of 5.1%. The brain imaging and neuroimaging market is primarily driven by the rising incidence and prevalence of neurological disorders, increased awareness of neurodegenerative diseases, an increase in traumatic brain injuries, and increased applications of brain imaging and neuroimaging in clinical trials.

Given the market potential, the latest FDA clearance of MIM Software's Centiloid Scaling Tool is likely to provide a boost to GEHC's business.

GEHC's Notable Developments

In August, GEHC announced the receipt of the CE mark for its Vscan Air SL wireless handheld ultrasound system with Caption AI. The company also received the CE mark for the use of ECG-less cardiac computed tomography scanning on its Revolution Apex platform.

The company also collaborated with the University of California San Diego School of Medicine. The tie-up aims to investigate advanced magnetic resonance imaging protocols and techniques for female-specific diseases and conditions of the pelvis and develop comprehensive educational materials for clinicians.

GEHC's Price Performance

In the past six months, GEHC shares have lost 2.6% compared with the industry's decline of 12.4%. The S&P 500 has gained 7.6% in the same time frame.

Image Source: Zacks Investment Research

GE HealthCare's Zacks Rank & Stocks to Consider

GEHC carries a Zacks Rank #3 (Hold) at present.

Some better-ranked stocks in the broader medical space are Universal Health Service UHS, Quest Diagnostics DGX and ABM Industries ABM. While Universal Health Service sports a Zacks Rank #1 (Strong Buy), Quest Diagnostics and ABM Industries carry a Zacks Rank #2 (Buy).

Universal Health Service has an estimated long-term growth rate of 19%. UHS' earnings surpassed estimates in each of the trailing four quarters, with the average being 14.58%.

Universal Health Service has gained 56.1% so far this year compared with the industry's 48.1% rise.

Quest Diagnostics has an estimated long-term growth rate of 6.20%. DGX's earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 3.31%.

Quest Diagnostics shares have gained 13.9% so far this year compared with the industry's 17.9% rise.

ABM Industries' earnings surpassed estimates in each of the trailing four quarters, delivering an average surprise of 7.34%.

ABM's shares have risen 27.4% so far this year compared with the industry's 17% growth.

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