GE HealthCare Technologies Inc. GEHC recently announced the expansion of its relationship with Elekta. The new collaboration follows the closing of GEHC’s acquisition of MIM Software Inc., which added the MIM SurePlan and MIM Symphony families, MIM Maestro and MIM Encore, among others, to its product portfolio.

The collaboration is aimed at accelerating innovation in software solutions that will likely improve workflows, increase throughput and enhance user experience for clinicians. It is also expected to enable greater precision in treatment and less time spent at the hospital for patients.

Per GE HealthCare, the latest announcement complements the companies’ existing global collaboration agreement, which enables the two companies to provide hospitals with a comprehensive offering across imaging and treatment for cancer patients requiring radiation therapy.

The latest partnership is expected to strengthen GE HealthCare’s Oncology portfolio and solidify its foothold in the niche space.

Rationale Behind the Collaboration

Per GE HealthCare, approximately two-thirds of all cancer patients receive radiation therapy (RT). However, it can take a considerable amount of time for a patient to go from a cancer diagnosis to treatment, partly due to a persistent lack of interoperability and automation. Additionally, therapy advancements (such as hypofractionation and adaptive therapy) may require precise, multi-modality imaging supported by advanced post processing.

GE HealthCare’s MIM Software portfolio with Elekta’s treatment planning software offerings will likely enable advanced and innovative oncology treatment planning in the delivery of RT. The collaboration is expected to drive innovation within treatment planning, harnessing MIM Software and Elekta’s respective strengths in regional markets to make solutions available globally.

Elekta’s management believes that the tie-up is an expansion of its portfolio, combining its dose planning capabilities with MIM Software's physician-preferred tools. Per management, clinically, it is expected to deliver improved automation and adaptive therapy planning, as well as greater speed and accuracy.

Industry Prospects

Per a report by Mordor Intelligence, the global cancer therapy market was estimated at $220.24 billion in 2024 and is anticipated to reach $409.68 billion by 2029 at a CAGR of approximately 10.6%. Factors like the rising prevalence of cancer and the increasing demand for personalized medicine are likely to drive the market.

Given the market potential, the latest collaboration is expected to provide a significant boost to GE HealthCare’s business globally.

Recent Developments in Imaging

This month, GE HealthCare announced a collaboration with the Radiological Society of North America to provide mammography technology, training and educational tools to radiologists at Muhimbili National Hospital, part of the Muhimbili University of Health and Sciences, in Tanzania, to improve access to screening and help clinicians lower the country’s breast cancer mortality rate.

The same month, GE HealthCare announced its plans to feature its latest breast cancer detection technology during the recently concluded Society of Breast Imaging Symposium in Montreal, Canada. The showcase was to feature the Mobile Mammography Screening Truck, the recently released MyBreastAI Suite and Pristina Bright offering to demonstrate the company’s personalized approach to transforming breast cancer imaging.

Last month, GE HealthCare received the FDA’s 510(k) clearance for IONIC Health’s nCommand Lite technology.

Price Performance

Shares of GE HealthCare have lost 1.9% in the past year compared with the industry’s 23.9% decline. The S&P 500 has witnessed 21.9% growth in the said time frame.

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Zacks Rank & Stocks to Consider

Currently, GE HealthCare carries a Zacks Rank #4 (Sell).

Some better-ranked stocks in the broader medical space are IDEXX Laboratories, Inc. IDXX, Becton, Dickinson and Company BDX, popularly known as BD, and Ecolab Inc. ECL.

IDEXX, carrying a Zacks Rank #2 (Buy) at present, has an estimated long-term growth rate of 11.6%. IDXX’s earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 8.3%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

IDEXX’s shares have lost 2.9% compared with the industry’s 1.8% decline in the past year.

BD, carrying a Zacks Rank of 2 at present, has an estimated long-term growth rate of 9.4%. BDX’s earnings surpassed estimates in three of the trailing four quarters and broke even once, with the average being 4.6%.

BD has lost 10.5% against the industry’s 1.9% rise in the past year.

Ecolab, carrying a Zacks Rank of 2 at present, has an estimated long-term growth rate of 13.3%. ECL’s earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 1.7%.

Ecolab’s shares have rallied 32% against the industry’s 10.3% decline in the past year.

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