Philips (PHG), SyntheticMR Unite to Aid Brain Diagnosing Space

Koninklijke Philips PHG and SyntheticMR recently announced the launch of Smart Quant Neuro 3D, which is likely to be a significant development in the objective decision support field for the diagnosis and treatment evaluation of brain illnesses such as dementia, traumatic brain injury, and multiple sclerosis.

Smart Quant Neuro 3D technology automatically measures different brain tissues to improve brain disease decision support, evaluate therapeutic effectiveness, and track disease development. Myelin volume analysis offers an objective evaluation of traumatic brain injuries, which were previously only identified by symptom-based testing.

Price Performance

For the past six months, PHG’s shares have lost 7.1% against the industry’s rise of 6.9%. The S&P 500 increased 13.1% in the same time frame.

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Smart Quant Neuro 3D

To diagnose brain disease, precise measurements of the volume and distribution of various brain tissue types are essential. However, it is nearly impossible to measure tissue volume from 2D image slices, and visual evaluations of Magnetic Resonance (MR) images are frequently subjective and lack essential accuracy.

Utilizing artificial intelligence, Smart Quant Neuro 3D accurately and totally verifies the volume measurement and 3D segmentation of brain tissue, including myelin, white matter, and gray matter. These measurements can offer meaningful information in helping patients receive a diagnosis when interpreted by a qualified medical professional.

Myelin, the insulating layer around nerves that makes sure electrical impulses in the brain reach their destination, is particularly easy to measure with Smart Quant Neuro 3D. Myelin loss is a primary feature of traumatic brain injury, and Smart Quant Neuro 3D's capacity to identify anomalies that are currently undetectable on traditional magnetic resonance imaging (MRI) scans aids in prompt diagnosis and treatment.

Smart Quant Neuro 3D integrates the quantitative tissue evaluation program SyMRI NEURO 3D from SyntheticMR, the AI-based SmartSpeed image-reconstruction technology from Philips, and the clinical application Philips 3D SyntAc. The integrated offering offers medical professionals strong diagnostic confidence-boosting capabilities that ultimately benefit patients.

To better stratify patients with similar imaging characteristics on standard MR sequences, Smart Quant enables faster scans and the investigation of quantitative measurements. As of now, Philips is only able to provide SyMRI NEURO 3D capabilities on MR scanners thanks to an exclusive partnership with SyntheticMR.

Industry Prospects

Per a report by Market Research Future, the global brain imaging and neuroimaging market was estimated at $13.2 billion in 2022 and is expected to reach more than $21.9 billion by 2032 at a growth rate of 5.8%.

The primary driver of the market's expansion is the rise in mortality due to several neurological disorders, including Parkinson's disease, Alzheimer's disease, schizophrenia, and other brain/neurological conditions. Two further significant growth-promoting elements are the rising demand for neuroimaging technologies and the ongoing study and research into brain mapping.

With the given market potential for brain imaging, Philips is likely to boost its business by partnering with SyntheticMR using the latest Smart Quant Neuro 3D, which aims to improve brain imaging using the power of AI and provide superior patient care.

Notable Developments

Philips recently announced the introduction of its new imaging technology, LumiGuide, powered by Fiber Optic RealShape technology. LumiGuide uses light instead of X-ray to enable doctors to navigate through blood vessels.

This latest innovation has the potential to provide numerous benefits for complex aortic procedures. It is likely to be more effective and efficient compared to X-ray imaging as X-ray only produces 2D black and white images along with harmful radiations.

The company also announced the FDA 510(k) clearance for its latest X11-4t Mini 3D TEE transducer, designed to serve more patients with improved overall comfort. This latest innovation has the potential to remove anesthetic during shorter heart procedures and is likely to serve a broader spectrum of patients ranging from pediatric to older adults.

In December 2023, Philips announced three new ultra-lightweight magnetic resonance Smart Fit coils, namely Smart Fit TorsoCardiac 1.5T, Smart Fit 1.5T shoulder and Smart Fit Knee 3.0T at RSNA 2023.

All three coils enhance flexibility, reduce patient setup time, and improve image quality resolution with SmartSpeed AI solution.

Koninklijke Philips N.V. Price

Koninklijke Philips N.V. Price

Koninklijke Philips N.V. price | Koninklijke Philips N.V. Quote

Zacks Rank & Stocks to Consider

PHG carries a Zacks Rank #3 (Hold) at present.

Some better-ranked stocks in the broader medical space that have announced quarterly results are Cencora, Inc. CORElevance Health, Inc. ELV and Cardinal Health, Inc. CAH.

Cencora, carrying a Zacks Rank of 2 (Buy), reported first-quarter fiscal 2024 adjusted earnings per share (EPS) of $3.28, beating the Zacks Consensus Estimate by 14.7%. Revenues of $72.25 billion outpaced the consensus mark by 5%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Cencora has a long-term estimated growth rate of 8.6%. COR’s earnings surpassed estimates in all the trailing four quarters, the average surprise being 6.7%.

Elevance Health reported fourth-quarter 2023 adjusted EPS of $5.62, beating the Zacks Consensus Estimate by 1.3%. Revenues of $42.45 billion outpaced the consensus mark by 1.5%. It currently carries a Zacks Rank #2.

Elevance Health has a long-term estimated growth rate of 12%. ELV’s earnings surpassed estimates in all the trailing four quarters, the average surprise being 3.1%.

Cardinal Health reported second-quarter fiscal 2024 adjusted EPS of $1.82, beating the Zacks Consensus Estimate by 16.7%. Revenues of $57.45 billion surpassed the Zacks Consensus Estimate by 1.1%. It currently carries a Zacks Rank #2.

Cardinal Health has a long-term estimated growth rate of 15.9%. CAH’s earnings surpassed estimates in all the trailing four quarters, the average surprise being 15.6%.

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

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