Henry Schein, Inc.’s HSIC U.S. medical business, Henry Schein Medical, recently announced the expansion of its SolutionsHub via the inking of a new distribution agreement with Rimidi. Per the latest agreement, Henry Schein will offer its clinic, medical group and health system customers access to Rimidi’s cloud-based software platform.
Rimidi is a physician-founded and led SaaS (Software as a service) company that brings together remote patient monitoring tools, patient-reported outcomes and clinical decision support to enhance patient care.
The latest distribution agreement is expected to significantly boost Henry Schein’s business in the U.S. medical space.
Rationale Behind the Deal
Henry Schein’s distribution agreement with Rimidi is expected to enable it to provide its customers with access to Rimidi’s cloud-based software platform. This, in turn, will likely expand its efforts to offer healthcare providers with an efficient model of care for patients with chronic conditions.
Rimidi’s software platform (which is integrated with a broad range of connected medical devices, including cellular and Bluetooth-enabled blood-glucose meters, among others) facilitates remote patient monitoring (RPM), patient-reported outcomes and clinical decision support in the clinical workflow. This, in turn, allows for data aggregation across multiple devices into a single, streamlined solution that integrates with the clinician’s electronic health record and provides time-effective and robust data-informed clinical decision support.
Per Henry Schein’s management, the latest deal with Rimidi will likely bring patient monitoring solutions into the existing workflow. This, in turn, is expected to enable healthcare professionals to actively engage patients and further optimize disease management in-between visits.
Per a report by Grand View Research, the global RPM system market was valued at $3.8 billion in 2021 and is anticipated to reach $16.9 billion by 2030 at a CAGR of 18.3%. Factors like the recent pandemic, increasing geriatric population and the cost-effectiveness of the treatment are expected to drive the market.
Given the market potential, Henry Schein’s recent agreement is likely to provide a significant boost to its U.S. business.
This month, Henry Schein reported its third-quarter 2022 results, where it registered solid bottom-line performance. It also witnessed robust year-over-year internal sales growth in local currencies (excluding sales of PPE and COVID-19 test kits) in the quarter.
In October, Henry Schein had announced its plans to present an expansive lineup of products, services and solutions to enhance practice efficiency at SmileCon 2022, held between October 13 and 15.
Also, in October, Henry Schein’s joint venture — Henry Schein One — and Smile Brands announced that Dentrix Ascend cloud-based practice management software from Henry Schein One would be adopted as the exclusive dental practice management system of Smile Brands and its affiliated dental practices.
Henry Schein stock has gained 3.5% over the past year against the industry’s 13.4% decline and the S&P 500's 16.8% fall.
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Zacks Rank & Key Picks
Currently, Henry Schein carries a Zacks Rank #3 (Hold).
AMN Healthcare, carrying a Zacks Rank #2 (Buy) at present, has an estimated long-term growth rate of 3.3%. AMN’s earnings surpassed the Zacks Consensus Estimate in all the trailing four quarters, the average beat being 10.9%.
AMN Healthcare has gained 0.5% against the industry’s 33.9% decline in the past year.
ShockWave Medical, carrying a Zacks Rank #2 at present, has an estimated growth rate of 23.6% for 2023. SWAV’s earnings surpassed estimates in all the trailing four quarters, the average beat being 146.1%.
ShockWave Medical has gained 30.6% against the industry’s 27.6% decline over the past year.
McKesson, carrying a Zacks Rank #2 at present, has an estimated long-term growth rate of 10.1%. MCK’s earnings surpassed estimates in two of the trailing four quarters and missed the same in the other two, the average beat being 4.8%.
McKesson has gained 66.5% against the industry’s 13.4% decline over the past year.
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