Philips' (PHG) Collaboration Live Gets Nod for Remote Diagnosis

Koninklijke Philips’ PHG Collaboration Live integrated tele-ultrasound receives the expanded U.S. Food & Drug Administration 510(k) clearance for remote diagnostic use on additional mobile platforms.

Collaboration Live is the medical industry’s first tele-ultrasound technology that lets clinicians collaborate, text, share screens with and transfer control to remote colleagues in real time.

Collaboration Live, which is available on Philips’ Ultrasound Systems EPIQ and Affiniti, helps clinicians to collaborate in real-time with colleagues to complete image acquisition and diagnosis regardless of location.

Ultrasound imaging brings clinicians in direct contact with patients. Amidst the ongoing pandemic, clinicians are facing impending risk of coming in contact with infected patients and in turn creating widespread staffing shortages.

This increases backlog of postponed exams and increases workload for clinicians working in hospitals and other medical institutions. However, with the expanded clearance, Philips’ Collaboration Live clinicians can consult or diagnose from their mobile devices, thus reducing the risk of contamination by coming in contact with infected patients.

Koninklijke Philips N.V. Price and Consensus

Koninklijke Philips N.V. price-consensus-chart | Koninklijke Philips N.V. Quote

Philips Rides on Solid Demand Amidst Pandemic

Philips witnessed solid demand for patient monitors, hospital ventilators, computed tomography and portable ultrasound systems due to the coronavirus outbreak. Moreover, increased interest in telehealth solutions like tele-ICU, tele-radiology and tele-pathology, which aid virtual working and collaboration of healthcare professionals, bodes well for Philips.

However due to the pandemic, rising supply chain issues had negatively impacted the company’s top-line growth in the fourth quarter of 2021. The supply chain management issues are still prevalent globally and potray significant threat to the company’s near-term profitability.

As a result of the pandemic, growth prospects are also sluggish in the healthcare market on a global scale. Rising raw material prices are also hurting Philips’ ability to sustain competitiveness in the markets it operates in.

Increased interest in telehealth solutions like tele-ICU, tele-radiology, tele-pathology, tele-dentistry services might act a key catalyst for the company’s growth in the healthcare market.

Collaboration Live, which is a part of the company’s Connected Care Business, accounted for 26.7% of sales in 2021. The Connected Care segment comprises the Monitoring & Analytics (41% of sales), Therapeutic Care (5% of sales), Population Health Management (4% of sales), Sleep & Respiratory Care (47% of sales) and Connected Care Informatics (3% of sales) businesses.

Zacks Rank and Stocks to Consider

Philips currently carries a Zacks Rank #5 (Strong Sell). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Philips’ shares have fallen 16.3% in the year-to-date period, underperforming the Zacks Medical-Products industry and the Medical sector’s declines of 11.9% and 11.5%, respectively.

Here are a few better-ranked stock worth considering in the broader Medical Sector.

AmerisourceBergen ABC carries a Zacks Rank #2 (Buy).

ABC shares have returned 8.8% in the year-to-date period, outperforming the Zacks Medical - Dental Supplies industry and the Medical sector’s declines of 8.5% and 11.5%, respectively.

Abeona Therapeutics ABEO carries a Zacks Rank #2 (Buy).

Abeona shares have fallen 16.2% in the year-to-date period compared with the Zacks Medical - Biomedical and Genetics industry and the Medical sector’s declines of 19.3% and 11.5%, respectively.

Acumen Pharmaceuticals ABOS also carry a Zacks Rank #2 (Buy).

Acumen shares have fallen 18.5% in the year-to-date period compared with the Zacks Medical - Biomedical and Genetics industry and the Medical sector’s declines of 19.3% and 11.5%, respectively.

Just Released: Zacks Top 10 Stocks for 2022

In addition to the investment ideas discussed above, would you like to know about our 10 top buy-and-hold tickers for the entirety of 2022?

Last year's 2021 Zacks Top 10 Stocks portfolio returned gains as high as +147.7%. Now a brand-new portfolio has been handpicked from over 4,000 companies covered by the Zacks Rank. Don’t miss your chance to get in on these long-term buys

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.