Koninklijke Philips PHG recently announced an extended partnership with Amazon Web Services (AWS) in response to the expanding demand for cloud-based, secure, scalable digital pathology solutions.
Philips' leadership and expertise in pathology digitization and AWS's competence in scalable, secure cloud solutions to streamline healthcare workflows are brought together in this collaboration. Cloud offerings will help improve workflow integration, access, and reliability, delivering greater productivity and collaboration.
Price Performance
For the past six months, PHG’s shares have lost 0.3% against the industry’s rise of 9.9%. The S&P 500 increased 13.9% in the same time frame.
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More on the Collaboration
Philips and AWS will help more pathology laboratories to use digital processes to boost productivity and are likely to advance digital pathology and assist pathology labs in effectively managing, storing, and analyzing increasing volumes of digital pathology data. Pathology labs will also be able to enhance the effectiveness of workflow and promote specialized collaboration, allowing for a smooth connection with current healthcare systems to provide comprehensive patient care.
With more than 300 clients utilizing Philips IntelliSite Pathology's entirely digital workflow, the company is a market leader in the provision of digital pathology solutions. Philips and AWS have the potential to enable large-scale clinical trials, multi-institute studies, and care collaboration to address complex cases, including in cancer care.
Philips intends to leverage AWS HealthImaging to enhance pathological picture analysis and streamline clinical operations by optimizing storage, scaling up, and enabling AI and research throughout the healthcare system. Additionally, the development and integration of generative AI applications will be supported by Amazon Bedrock, which provides high-performing foundation models.
Although Philips HealthSuite Imaging on AWS is set to assist radiologists, the company’s extensive enterprise informatics capabilities allow for an integrated diagnostics approach that gives clinicians better diagnostic workflows and faster access to images from any location. This helps throughout the entire enterprise imaging workflow, from diagnosis to treatment options and follow-up.
Industry Prospects
Per a report by Grand View Research, the global digital pathology market size was valued at $1.03 billion in 2023 and is expected to grow at 8.0% from 2024 to 2030.
This is attributed to the rising prevalence of cancer, increasing focus on improving the efficiency of workflow, and growing demand for faster diagnostic tools.
With the given market potential for digital pathology, Philips's collaboration with AWS is likely to boost the company’s business and generate additional revenues.
Notable Developments
Philips 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.
The company also announced the launch of its new Azurion neuro biplane system, which is likely to be a major improvement to its Image Guided Therapy System.
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. Each of these coils enhances flexibility, reduces patient setup time, and improves image quality resolution with SmartSpeed AI solution.
Some better-ranked stocks in the broader medical space are DaVita Inc. DVA, Cardinal Health, Inc. CAH and Cencora, Inc. COR.
DaVita, sporting a Zacks Rank #1 (Strong Buy), has an estimated long-term growth rate of 12.1%. DVA’s earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 35.6%. You can see the complete list of today’s Zacks #1 Rank stocks here.
DaVita’s shares have gained 58.3% compared with the industry’s 18.9% rise in the past year.
Cardinal Health, flaunting a Zacks Rank of 1 at present, has an estimated long-term growth rate of 14.2%. CAH’s earnings surpassed estimates in each of the trailing four quarters, with the average being 15.6%.
Cardinal Health has gained 51.9% compared with the industry’s 3.2% rise in the past year.
Cencora, carrying a Zacks Rank of 2 (Buy) at present, has an estimated long-term growth rate of 9.8%. COR’s earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 6.7%.
Cencora’s shares have rallied 51.5% compared with the industry’s 3.6% rise in the past year.
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