Recently,
Merge Healthcare
(
MRGE
) entered into a new deal with a global medical image collection
and delivery service provider AG Mednet. Per the deal, the
integrated solution would offer an entire collection of tools to
life sciences companies working on imaging clinical trials across
the world. However, financial terms of the deal were not
disclosed.
The partnership will enable Merge to integrate its Clinical
Imaging Management System (Merge CIMS) with AG Mednet's image
collection platform. Merge CIMS is a pioneering product in the
field of automated data and imaging workflow solutions and enables
efficient imaging of clinical trials for radiologists, sponsors and
CROs. This integrated solution will provide superior imaging and
data flow directly into Merge's CIMS and electronic data capture (
EDC
) solutions.
Merge is confident about the premier infrastructure and
comprehensive feature set. It will prove to be an indispensable
solution for commercial and academic core labs and extend necessary
logistical support for clinical trials. Also, the alliance
with AG Mednet will help the company to access its broad customer
base (currently AG Mednet has over 10,000 registered users in 58
countries across the world).
Physicians, payors and patients are currently focusing on
healthcare information systems and clinical data to achieve the
ultimate goal of improving the quality of the healthcare system and
reduce costs. In this scenario, we believe Merge's partnership with
AG Mednet holds strong potential. Merge is confident about this new
combined service and expects greater acceptance of the solution
going ahead.
However, Merge's growth prospect is highly dependent on capital
investments by hospitals for advanced imaging solutions, which are
tied to general economic conditions. Also the presence of big
players like
General Electric Co
(
GE
) and
McKesson Corporation
(
MCK
) has made the diagnostic imaging market highly competitive.
However, there is immense potential in the diagnostic imaging
market, especially with the government's emphasis on HIT (health
IT) and an ageing population. The acquisition of AMICAS has
transformed Merge into a stronger company with an expanded product
portfolio. We are encouraged by the company's renewed focus on
international markets.
Presently, Merge retains a short-term Zacks #2 Rank (Buy). Over
the long term, we have a 'Neutral' recommendation on the stock.
GENL ELECTRIC (
GE
): Free Stock Analysis Report
MCKESSON CORP (
MCK
): Free Stock Analysis Report
MERGE HEALTHCAR (
MRGE
): Free Stock Analysis Report
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