Koninklijke Philips
(
PHG
) recently announced that its latest AI-powered MR acceleration software SmartSpeed has received U.S. Food and Drug Administration’s (FDA) 510(k) clearance. The new software will be showcased as part of an AI-powered precision diagnosis portfolio at the European Congress of Radiology (ECR).
The rising global aging population, high levels of clinical burnout and increasing shortage of staff are putting radiology departments under increasing pressure to improve performance, productivity and profitability.
Philips SmartSpeed increases image resolution by 65% and scans three times faster compared to conventional MR scans available in the market currently.
It helps in improving diagnostic decisions as it supports 97% of current clinical protocols like advanced contrasts and diffusion-weighted imaging and quantitative imaging such as T1 or T2 mapping brain, liver, heart of musculoskeletal.
Koninklijke Philips N.V. Price and Consensus
Koninklijke Philips N.V. price-consensus-chart
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Koninklijke Philips N.V. Quote
Philips Banks on AI-based Solutions to Drive Top Line
Philips has been unable to meet the rising demand with proper supply due to the severe global shortage of chips, which has disrupted the manufacturing of life-saving medical devices and the supply chain system.
The chip shortage is happening at a time when chronic diseases are on the rise again, while wars and economic issues globally are posing a severe threat to people’s lives.
Due to the current macro-economic scenario, growth prospects are sluggish in the healthcare market worldwide, as evident from the negative share price movement of Philips and its peers operating in the broader medical sector, including
Aclaris Therapeutics
ACRS
,
Abeona Therapeutics
ABEO
and
General Electric
GE
subsidiary GE Healthcare.
Philips’ short-term growth looks tepid, and its shares currently have a Zacks Rank # 4 (Sell). The company’s shares have fallen 55% in the year-to-date (YTD) period compared with the Zacks
Medical-Products
industry and the
Medical
sector’s decline of 32.1% and 18.1%, respectively.
You can see
the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Aclaris shares have fallen 8.7% in the YTD period, compared with the Zacks
Medical – Drugs
industry’s decline of 21.4%.
Abeona shares have plunged 34.5% in the YTD period compared with the Zacks
Medical – Biomedical and Genetics
industry’s decline of 20.6%.
General Electric shares have slumped 38.9% in the YTD period compared with the Zacks
Diversified Operations
industry’s decline of 29.7%.
However, the Russia-Ukraine war and the pandemic have exposed various issues in healthcare and highlighted how new trending technologies like AI and virtual care solutions are required to support patients in these trying times effectively.
Effective crisis management has given rise to healthcare companies like Philips integrating the benefits of the cloud and software as a service (SaaS) in the healthcare industry.
The development of Philips’ latest AI-based products will aid in providing diagnosis faster, even through virtual sessions to patients who have no access to hospitals.
Philips SmartSpeed is the latest addition to the company’s AI-driven, smart, connected imaging and smart workflow solutions that help in solving the problems plaguing the healthcare industry, especially the radiology staff. The latest AI- software helps in achieving the company’s quadruple aim of improving diagnostic outcomes and enhancing patient and staff experiences while simultaneously reducing healthcare costs overall amid rising inflation.
The development of its AI-based solutions separates the company’s services from its peers and is likely to aid the company in winning market share as the healthcare industry bounces back in the long run.
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