CHICAGO - GE HealthCare (NASDAQ:GEHC) has announced the publication of a study in Anesthesia and Analgesia journal, demonstrating the effectiveness of its FDA-approved End-tidal Control software in delivering inhaled anesthesia. The MASTER trial, conducted across four U.S. hospitals with 210 adult patients, compared the software's performance to conventional manual control methods in achieving set targets for end-tidal anesthetic and oxygen concentrations.
The study found that the End-tidal Control software reached targeted end-tidal anesthetic concentrations within 5% of the set value 98% of the time, significantly outperforming manual control, which achieved the same accuracy only 46% of the time. Similarly, for end-tidal oxygen concentrations, the software maintained the target within 5% of the set value 86% of the time, compared to 41% with manual control.
The software also demonstrated quicker response times, taking a median of 75 seconds to reach 90% of the desired initial end-tidal anesthetic concentration, whereas manual control took a median of 158 seconds. These results suggest that End-tidal Control can enhance the precision of anesthesia delivery and potentially improve patient safety in the operating room.
In addition to improved accuracy and response times, the trial supports the software's ability to reduce the usage of anesthetic agents, which can lead to lower greenhouse gas emissions and costs. A separate study indicated a potential 44% decline in greenhouse emissions when employing End-tidal Control software.
End-tidal Control is designed to reduce the cognitive burden on clinicians by minimizing the need for manual adjustments, allowing them to focus more on patient care. This automation aligns with the current needs of healthcare systems facing workforce challenges, sicker patients, and rising costs.
The results of the MASTER trial reinforce the potential of End-tidal Control software to reduce variability in care and cater to individual patient needs, according to Dr. John Beard, Chief Medical Officer of Patient Care Solutions at GE HealthCare. The software can be used with the Aisys™ CS2 Anesthesia Delivery System to enhance perioperative care.
This announcement is based on a press release statement from GE HealthCare.
In other recent news, GE HealthCare Technologies Inc. has issued $1 billion in senior unsecured notes as part of the company's shelf registration statement. The notes, due in 2029, carry an interest rate of 4.8%. In terms of earnings and revenue, the company reported nearly matching Wall Street expectations in its second quarter, with revenues of $4.84 billion and an earnings per share (EPS) of $1.00. This performance was credited to strong results in the Pharmaceutical Diagnostics segment and robust demand in the U.S., leading to a 3% growth in orders.
Following these developments, Piper Sandler upgraded the stock's price target from $92.00 to $95.00, maintaining an Overweight rating on GE HealthCare Technologies. Despite market hurdles, particularly in China, the company reported modest organic revenue growth and a 3% increase in orders for the second quarter of 2024. GE HealthCare Technologies maintained its EPS guidance for the year, raised its guidance for adjusted earnings before interest and taxes (EBIT) margin expansion, but lowered its full-year 2024 organic revenue growth guidance to 1-2% due to temporary market headwinds in China.
Lastly, despite a negative free cash flow of $182 million in Q2, the company anticipates strong cash generation for the full year. Piper Sandler also highlighted the potential for future growth due to various factors, including proposed broadening reimbursement support for radiopharmaceuticals and improved macro conditions for equipment purchases. These are recent developments in GE HealthCare Technologies' business operations.
InvestingPro Insights
As GE HealthCare (NASDAQ:GEHC) continues to innovate in the medical technology space, recent data from InvestingPro provides a snapshot of the company's financial health and market position. With a market capitalization of $39.09 billion, GE HealthCare stands as a significant player in the healthcare equipment and supplies industry. This is further underscored by its position as a prominent player in the industry, as noted in one of the InvestingPro Tips. The company's commitment to innovation, such as the End-tidal Control software, aligns with its financial stability and industry standing.
GE HealthCare's price-to-earnings (P/E) ratio is currently at 24.55, with a slight adjustment to 24.68 over the last twelve months as of Q2 2024. This metric suggests that the company is valued at a level that is consistent with its earnings, which is particularly relevant for investors gauging the stock's value. The gross profit margin stands at a healthy 40.96%, indicating a solid ability to translate sales into profit.
Investors interested in the company's performance can also note that analysts predict GE HealthCare will be profitable this year. This is backed by the company's profitability over the last twelve months, reinforcing its financial robustness. For those monitoring stock stability, GE HealthCare generally trades with low price volatility, which might appeal to investors looking for less risky assets.
For more in-depth analysis and additional InvestingPro Tips on GE HealthCare, investors can explore the comprehensive insights available on the platform. Currently, there are 11 more tips listed on InvestingPro that provide a deeper understanding of the company's financials and market performance.
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