Cerner's (CERN) Deal to Make Clinical Trials More Accessible

Cerner Corporation CERN recently made an investment in Elligo Health Research that will enable the former to ink a commercial agreement to extend the data and tools available in the Cerner Learning Health Network. This, in turn, will provide additional clinical trial resources to community and rural hospitals and physician practices. However, the financial terms of the deal have been kept under wraps.

Notably, Elligo Health is a leading integrated research organization that utilizes electronic health records, and trustworthy patient and physician relationship to ensure access to clinical research as a care option for all patients.

This collaboration is likely to further strengthen Cerner’s presence in the healthcare information technology (HCIT) space.

Benefits of the Collaboration

It is important to mention here that health systems go through severe hurdles like patient recruitment, costs and access to clinical trials and resources.

The partnership is likely to expedite clinical research timeframes and make them more widely and easily accessible, while lowering costs related to introducing a therapy to market.

In fact, this deal will help reduce obstacles faced by health systems, thereby making clinical trials more of a reality regardless of the size, location or academic standing.

Market Prospects

Per a report by Allied Market Research, the global HCIT market is expected to reach $297 billion at a CAGR of 13.2% during the 2016-2022 period. Rise in demand for quality healthcare services and solutions, and patient safety and care, proactive supportive government initiatives, and increase in acceptance of mHealth and telehealth practices are the primary factors driving the market. Further, growing adoption of smartphones and patient-doctor convenience are contributing to the market’s growth.

Recent Development

In September, Cerner announced a collaboration with Vynca — a national leader in advance care planning solutions — to streamline the complicated advance care planning procedure for individuals and families, caregivers and clinicians in a bid to ensure patients’ end-of-life preferences and needs are met every single time. The partnership will allow Cerner and Vynca to break down the digital barrier between legal documents and electronic health records (EHRs), thereby making it simpler for clinicians to carry out the process.

Price Performance

Shares of this Zacks Rank #3 (Hold) stock have gained 4.1% in a year’s time compared with the industry’s rally of 30.5%.

Stocks to Consider

Some better-ranked stocks from the broader medical space are Merit Medical Systems, Inc. MMSI, Align Technology, Inc. ALGN and Thermo Fisher Scientific Inc. TMO, each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Merit Medical has a projected long-term earnings growth rate of 12.6%.

Align Technology has an estimated long-term earnings growth rate of 18.3%.

Thermo Fisher has a projected long-term earnings growth rate of 18%.

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Cerner Corporation (CERN): Free Stock Analysis Report
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