GE HealthCare Technologies Inc. GEHC, on Thursday, announced the launch of the Invenia Automated Breast Ultrasound (ABUS) Premium. It is the latest 3D ultrasound product from the company, which is expected to offer advanced artificial intelligence (AI) and innovative features to drive faster, reproducible supplemental screening and streamline exam readings on patients with dense breasts.
Invenia ABUS Premium has received the FDA’s premarket approval and will be launched in key countries throughout 2025.
The latest move is expected to significantly strengthen GE HealthCare’s Ultrasound segment, thus boosting its business in the niche space.
Likely Trend in GEHC Stock Following the News
Following the announcement, shares of the company lost nearly 1.1% till last trading.
Historically, the company has gained a top-line boost from its various product innovations. Although the latest launch is likely to be beneficial for GEHC’s top-line growth, the stock declined overall.
GE HealthCare currently has a market capitalization of $37.27 billion. It has an earnings yield of 5.8%, better than the industry’s 0.3%. In the last reported quarter, GEHC delivered an earnings surprise of 15.1%.
Significance of GE HealthCare’s Latest Launch
Per GE HealthCare, approximately 71% of cancers occur in dense breasts. According to studies across the United States and Europe, 40% of women and 70% of Asian women have dense breast tissue, making them four to six times more likely to receive a breast cancer diagnosis. GEHC continued that although early detection of breast cancer is critical, about one-third of cancers in dense breasts may go undetected by a mammogram, as the cancer can be masked within the dense tissue.
Per an expert familiar with the Invenia ABUS Premium, its special AI features ensure that the breast volume is captured and offer automatic nipple annotation. This reduces the scanning time and streamlines clinical workflow.
GE HealthCare’s management believes that the Invenia ABUS Premium, which is equipped with AI, has the potential to optimize clinicians’ screening capabilities. This, in turn, will likely enable clinicians to detect even small, early-stage cancers in women with dense breasts. Management also believes that the non-invasive ultrasound technology will be able to improve scan speed and enhance comfort during an examination.
Industry Prospects in Favor of GEHC
Per a report by Grand View Research, the global breast cancer diagnostics market was valued at $4.3 billion in 2022 and is anticipated to witness a CAGR of 7.4% between 2023 and 2030. Factors like technological advancements and the rising prevalence of breast cancer are likely to drive the market.
Given the market potential, the latest product availability is expected to provide a significant boost to GE HealthCare’s business.
GE HealthCare’s Recent Launches
This month, GE HealthCare announced the launch of the AltiX AI.i edition of Mac-Lab, CardioLab and ComboLab. The AltiX AI.i edition is expected to enhance efficiency and precision care for multiple types of cardiac procedures.
The same month, GE HealthCare announced its new Genesis solutions, a portfolio of cloud enterprise imaging software-as-a-service solutions.
GEHC’s Share Price Performance
Shares of the company have lost 6.6% in the past year against the industry’s 9.9% rise and the S&P 500’s gain of 9.1%.
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GE HealthCare’s Zacks Rank & Key Picks
Currently, GEHC carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader medical space are Cardinal Health, Inc. CAH, Cencora, Inc. COR and Boston Scientific Corporation BSX.
Cardinal Health, carrying a Zacks Rank #2 (Buy) at present, has an estimated long-term growth rate of 9.5%. CAH’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 9.6%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Cardinal Health’s shares have gained 19% against the industry’s 3.5% decline in the past year.
Cencora, carrying a Zacks Rank of 2 at present, has an estimated long-term growth rate of 12.1%. COR’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 4.9%.
Cencora has gained 10.9% against the industry’s 17.2% decline in the past year.
Boston Scientific, carrying a Zacks Rank of 2 at present, has an estimated long-term growth rate of 13.3%. BSX’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 8.3%.
Boston Scientific’s shares have rallied 52.3% compared with the industry’s 9.9% growth in the past year.
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