GEHC Stock Rises as FDA Approves MIM Software’s Centiloid Tool

MIM software from GE HealthCare Technologies (NASDAQ:GEHC) recently announced that it has received FDA clearance to perform a Centiloid scale for the analysis and quantification of amyloid imaging based on positron emission tomography (PET).

With MIMneuro, a vendor-neutral solution, this new Centiloid scaling tool could help physicians more accurately determine the density of amyloid plaque in a patient’s brain. Amyloid-based PET radiotracers help visualize the density of amyloid plaques in patients being evaluated for Alzheimer’s disease.

GEHC Stock’s Likely Trend After This News

Following the announcement, the company’s shares rose nearly 1.7% to $88.53 at yesterday’s close.

GE HealthCare is a leading provider of medical technology, pharmaceutical diagnostics and digital solutions for precision care. In March, GE Healthcare acquired MIM Software, which added AI-powered solutions for the practice of radiation therapy, molecular radiotherapy, diagnostic imaging and urology in imaging centers, hospitals, specialty clinics and research organizations worldwide. Given the strong potential of the diagnostic imaging market, we expect market sentiment around this news to remain positive.

Meanwhile, GEHC’s current market capitalization is $39.63 billion. Its earnings yield of 4.91% is significantly higher than the industry’s negative (7.12)%. In the last quarter, GEHC posted an earnings surprise of 2.04%.

More about GEHC’s Centiloid Scale Tool

A significant number of people in the United States develop dementia, with Alzheimer’s disease accounting for 60 to 80 percent of cases. The disease affects memory, thinking, and behavior, and symptoms begin as mild cognitive impairment and eventually become severe enough to interfere with daily tasks. A hallmark of the condition is the buildup of beta-amyloid protein in the brain, which is linked to tissue loss and cell death.

To help physicians identify potential patients for amyloid-targeted therapies, PET imaging can visualize and quantify amyloid protein. A global consortium of physicians and scientists created the Centiloid Scale to harmonize the quantitative analysis of amyloid imaging across radiotracers and organizations.

GE HealthCare’s MIM software now offers MIMneuro with Centiloid scaling, using an automated workflow to help users generate and understand the quantitative result. The software takes PET amyloid images, provides clinicians with instructions to automatically generate quantitative results, and presents the data in a standardized report for clinicians to review alongside the images. As a result, clinicians can more easily access the quantitative data they need to assess patients.

MIMneuro with Centiloid scaling is the latest addition to GE HealthCare’s comprehensive suite of products and solutions, which spans the Alzheimer’s disease care pathway from diagnosis to treatment monitoring.

Favorable industry outlook for GEHC

According to a report by Future Market Insight, the global brain imaging and neuroimaging market was estimated at $13.7 billion in 2023 and is expected to surpass $22.4 billion by 2033, at a CAGR of 5.1%. The brain imaging and neuroimaging market is primarily driven by the increasing incidence and prevalence of neurological disorders, increasing awareness about neurodegenerative diseases, an increase in head injuries, and an increase in the applications of brain imaging and neuroimaging for clinical trials.

Given the market potential, the latest FDA clearance for MIM Software’s Centiloid scaling tool is expected to boost GEHC’s business.

GEHC’s notable developments

In August, GEHC announced that it received CE Mark approval for its Vscan Air SL wireless portable ultrasound system with Caption AI. The company also received CE Mark approval for the use of ECG-free cardiac CT scanning on its Revolution Apex platform.

The company has also partnered with the University of California San Diego School of Medicine. The partnership aims to study advanced magnetic resonance imaging protocols and techniques for women-specific diseases and conditions and to develop comprehensive educational materials for clinicians.

GEHC Price Performance

Over the past six months, GEHC shares have declined 2.6% compared to the industry’s decline of 12.4%. The S&P 500 has gained 7.6% in that time.

GE HealthCare Zacks Rank and Stocks to Consider

Currently, GEHC has a Zacks Rank of #3 (Hold).

Some of the best quality stocks in the medical field are Universal Health Service (NYSE:UHS), Quest Diagnostics (NYSE:DGX) et ABM Industries (NYSE:ABM). Universal Health Service has a Zacks Rank of #1 (Buy), while Quest Diagnostics and ABM Industries have a Zacks Rank of #2 (Buy).

Universal Health Service has an estimated long-term growth rate of 19%. UHS has beaten earnings estimates in each of the last four quarters, averaging 14.58%.

Universal Health Service is up 56.1% year-to-date compared to the industry’s 48.1% gain.

Quest Diagnostics has an estimated long-term growth rate of 6.20%. DGX’s earnings have surpassed estimates in each of the last four quarters, with an average surprise of 3.31%.

Quest Diagnostics shares have gained 13.9% year to date compared with the industry’s 17.9% gain.

ABM Industries’ earnings have topped estimates in each of the last four quarters, with an average surprise of 7.34%.

ABM shares are up 27.4% year-to-date compared with the industry’s 17% gain.