Smith & Nephew plc SNN and InfuSystem Holdings, Inc. INFU recently announced a three-year distribution agreement for delivering Smith & Nephew's innovative RENASYS EDGE negative pressure wound therapy (NPWT) system to patients requiring home-based care for chronic wounds. The collaboration aims to enhance patient access to advanced wound care technology, leveraging InfuSystem’s extensive network and service capabilities.
Smith & Nephew, a global leader in medical technology, launched the RENASYS EDGE NPWT system in the United States on Apr 1, 2024. This patient-centric device is designed to treat chronic wounds, offering a discreet, lightweight and quiet option that allows patients to maintain their daily activities without drawing attention to their condition.
Smith & Nephew has a longstanding reputation for innovation in wound care, and the launch of the RENASYS EDGE System marks a continued commitment to improving patient outcomes. The company has also partnered with SunMED Medical Solutions and First Nation Group to distribute this advanced technology nationwide. The system is designed with patient comfort and ease of use in mind, offering an intuitive interface for clinicians and comprehensive support for patients.
Significance of the Agreement
Per Smith & Nephew, this partnership is a strategic move as it will allow the company to broaden the reach of its RENASYS EDGE NPWT system through InfuSystem's established distribution channels. InfuSystem has a network of over 800 in-network health insurance providers, covering more than 96% of the United States population.
By integrating this advanced wound care technology into InfuSystem's comprehensive Patient Services platform, Smith & Nephew can offer a more accessible, home-based solution for patients dealing with chronic wounds. The collaboration not only strengthens Smith & Nephew's presence in the NPWT market but also aligns with the growing demand for home-based healthcare solutions, positioning both companies for new revenue opportunities and enhanced patient outcomes.
Industry Prospects
Per a report in SkyQuest, the global negative pressure wound therapy market size is expected to be worth $2.68 billion in 2024. It is anticipated to reach $4.25 billion by 2031 at a CAGR of 6.8%.
The robust growth is likely to be primarily driven by the rising prevalence of chronic wounds, like diabetic foot ulcers and venous leg ulcers, which necessitate advanced wound care. However, the market faces challenges such as high costs, particularly in developing regions, and potential complications like bleeding and infection if the therapy is not properly applied or monitored. Despite these hurdles, opportunities arise from technological advancements and the increasing demand for home-based healthcare solutions, contributing to the market's evolution and the development of innovative wound-healing solutions.
Price Performance
Shares of Smith & Nephew have increased 9.5% so far this year compared with 5.4% rise of the industry. The S&P 500 has witnessed an 11.7% rise in the same time frame.
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Zacks Rank & Key Picks
Currently, Smith & Nephew carries a Zacks Rank #3 (Hold).
Some top-ranked stocks in the broader medical space are Universal Health Service UHS and Quest Diagnostics DGX . While Universal Health Service sports a Zacks Rank #1 (Strong Buy), Quest Diagnostics carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Universal Health Services has an estimated long-term growth rate of 19%. UHS’ earnings surpassed estimates in each of the trailing four quarters, with the average being 14.58%.
Universal Health Service has gained 41.1% compared with the industry's 34.8% rise so far this year.
Quest Diagnostics has an estimated long-term growth rate of 6.20%. DGX’s earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 3.31%.
Quest Diagnostics shares have gained 3.7% so far this year compared with the industry’s 10.2% rise.
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InfuSystems Holdings, Inc. (INFU) : Free Stock Analysis Report
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