NSPR Stock Declines Despite PMA Application Submission for CGuard

Tactile Systems Technology, Inc. TCMD, popularly known as Tactile Medical, announced that its next-generation pneumatic compression platform, Nimbl, has received approval from Pricing, Data Analysis, and Coding (PDAC) contractor for the Centers for Medicare & Medicaid Services (CMS). This approval allows the use of HCPCS code E0651 for Medicare billing following FDA 510(k) clearance in June 2024.

The company collaborates with clinicians to advance clinical evidence, raise awareness and improve patient access to care. By offering solutions that enhance quality of life and reduce healthcare costs, Tactile Medical helps patients manage their conditions more effectively at home each year.

Shares of TCMD closed 1% higher on Sept. 16 following the news announcement.

Significance of PDAC Approval for Tactile Medical’s Nimbl

The PDAC approval for Nimbl marks a crucial milestone for Tactile Medical, enabling Medicare reimbursement for its next-generation pneumatic compression device. This is significant because it not only validates the efficacy and utility of the system for chronic conditions such as lymphedema, chronic edema, venous insufficiency and wound healing but also increases accessibility for Medicare patients. With a more compact design and digital connectivity features, Nimbl is positioned to improve patient adherence and outcomes, enhancing both the treatment experience and health benefits. This approval accelerates the commercial rollout and underscores the company’s innovation in the field of chronic disorder therapies.

Management announced that the PDAC approval for Nimbl was received earlier than anticipated, highlighting CMS' recognition of its health benefits for Medicare patients with lymphedema and chronic venous insufficiency. It also emphasized Nimbl’s sleek design and technical advancements, which enhance patient adherence and reflect the company’s focus on innovative solutions throughout the treatment process.

With a 40% smaller size and 68% lighter weight than previous models, it offers enhanced portability for active users. Nimbl also connects to the Kylee digital app, allowing patients to track therapy progress and share results with their care teams, making treatment more convenient and effective.

The company plans to commercially launch Nimbl in the United States in the coming weeks.

Market Prospects Favoring TCMD

Per a report in Coherent Market Insights, the global lymphedema treatment market size was worth $570.4 million. It is anticipated to reach $1.1 billion by 2030 at a CAGR of 9.7%.

The robust growth is likely to be driven by the rising prevalence of lymphedema, increasing incidence of cancer and technological advancements.

TCMD Stock Price Performance

Shares of Tactile Medical have lost 2.2% year to date against the industry’s 9.2% growth. The S&P 500 has witnessed a 17.8% rise in the same time frame.

Zacks Rank & Key Picks

Currently, Tactile Medical carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the broader medical space are Universal Health Services UHS, Quest Diagnostics DGX and Aveanna Healthcare AVAH. While Universal Health Services sports a Zacks Rank #1 (Strong Buy), Quest Diagnostics and Aveanna Healthcare carry a Zacks Rank #2 (Buy) each at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Universal Health Services has an estimated long-term growth rate of 19%. UHS’ earnings surpassed estimates in each of the trailing four quarters, with the average being 14.58%.

Universal Health Services has gained 41.1% compared with the industry's 34.8% growth year to date.

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

Quest Diagnostics shares have risen 3.7% year to date compared with the industry’s 10.2% growth.

Aveanna Healthcare's earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 47.5%.

AVAH's shares have surged 104.5% year to date compared with the industry’s 15.7% growth.

Zacks Investment Research

Community Health Systems, Inc. CYH recently announced that its subsidiary, Northwest Urgent Care, LLC, has agreed to buy 10 urgent care centers in Arizona from Carbon Health. The move is expected to boost the company’s capacity and footprint in the region.

The transaction is scheduled to be completed in the fourth quarter of 2024. Northwest Urgent is part of Northwest Healthcare, which serves Tucson and its surrounding communities in Arizona. The acquisition is expected to expand Northwest Healthcare’s network to more than 80 sites.

Northwest Healthcare has committed around $200 million to strategic growth and capital development across the Greater Tucson Metro area in the last five years. This investment includes two new hospitals: Northwest Medical Center Sahuarita and Northwest Medical Center Houghton. These projects reflect the company’s efforts to expand and modernize its healthcare offerings in the region. With improving economic conditions, an increase in mergers and acquisitions within the medical and hospital sectors is expected in the coming days.

Over the years, acquisitions and partnerships have been key drivers of Community Health’s growth. The company targets hospitals where it can add value by expanding specialty medical services, achieving economies of scale, investing in new technology and enhancing process management. CYH is expanding capacity by adding beds to its existing facilities to meet the growing demand for healthcare services.

The company operates in 39 distinct markets across 15 states. In the first quarter of 2024, it opened two new ambulatory surgery centers in Tucson, AZ, and Cedar Park, TX. These expansionary moves are expected to boost CYH’s admission volumes, supporting overall growth.

CYH Stock Price Performance

Community Health’s shares have surged 84.6% in the past year compared with the 56.5% rise of the industry it belongs to.

Quest Diagnostics DGX recently purchased Allina Health’s select laboratory assets, in line with its strategy to expand through planned acquisitions. The acquisition should help Quest Diagnostics expand its unique and cost-efficient laboratory services in Minneapolis and across Minnesota and western Wisconsin.

Financial terms of the deal were not disclosed.

Likely Trend of DGX Stock Following the News

Following the announcement, shares of the company moved nearly 1.3% north to $156.36 at yesterday’s close. Historically, the company has gained high level of synergies from its various inorganic investments within the laboratory service space. We expect market sentiment on the stock to continue to remain positive around this announcement, too.

Meanwhile, DGX currently has a market capitalization of $17.41 billion. It has an earnings yield of 5.76%, much higher than the industry’s yield of 3.39%. In the last reported quarter, DGX delivered an earnings surprise of 1.73%.

More on Quest Diagnostics' Allina Health Deal

Under the terms of the agreement announced earlier, with the completion of the acquisition, Allina Health’s clinic physicians will now have access to Quest Diagnostics’ laboratory services.

For investors’ note, Allina Health is a leading non-profit healthcare system. With this transaction, Allina Health can reinvest non-profit resources to support its commitment to providing quality and affordable laboratory services to different communities of people.

Strategic Implications of DGX's Latest Purchase

The acquisition of Allina Health’s select laboratory assets is expected to be strategically aligned with DGX's business as both share common interests like helping a range of communities benefit from quality, innovative and affordable laboratory services.

According to Quest Diagnostics, this latest initiative is part of the company’s strategy to generate growth through accretive laboratory acquisitions.

Industry Prospects in Favor of Quest Diagnostics

Per a Grand View Research report, the global clinical laboratory services market was valued at $233.2 billion in 2023 and is anticipated to witness a CAGR of 3.5% by 2030. Primary factors influencing the market surge include the increasing burden of chronic diseases and the growing demand for early diagnostic tests. Along with these, rapid advancements in data management and sample preparation due to growing volumes of testing samples are expected to uplift market growth during the period.

Given the market potential, the deal is expected to benefit Quest Diagnostics' strategy for continuous growth through gradual laboratory acquisitions.

Quest Diagnostics' Growth Through Acquisitions

Acquisitions play a major role for the company. In addition to reaching out through professional lab services and reference testing, The company mainly focuses on traditional hospital outreach purchases and tuck-in lab deals that are accretive to earnings in the first year.

In August, the company announced the completion of its acquisition of LifeLabs from OMERS. The transaction was valued at approximately $1 billion, including net debt. This acquisition is aimed at enhancing access to diagnostic innovation for patients in North America.

The same month, Quest Diagnostics signed a definitive agreement to acquire select assets of University Hospitals' outreach laboratory services business. The transaction should help the company to broaden its access in Ohio to provide its innovative test menu, network of convenient patient access sites and broad health plan coverage.

Additionally, the company purchased PathAI Diagnostics from PathAI, aiming to increase the adoption of AI and digital pathology for better diagnosis of cancer and other diseases.

DGX Price Comparison

Over the past three months, DGX stock has risen 13.9% compared with the industry’s 9.7% growth.

Zacks Rank of DGX and Key Picks

Quest Diagnostics currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the broader medical space are Intuitive Surgical ISRG, TransMedics Group TMDX and Boston Scientific BSX. While Intuitive Surgical and TransMedics currently sport a Zacks Rank #1 (Strong Buy) each, Boston Scientific carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Intuitive Surgical’s shares have surged 64.8% in the past year. Estimates for the company’s earnings have remained constant at $1.67 per share for 2024 in the past 30 days.

ISRG’s earnings beat estimates in each of the trailing four quarters, delivering an average surprise of 8.97%. In the last reported quarter, it posted an earnings surprise of 16.34%.

Estimates for TransMedics’ 2024 EPS have moved up 2.5% to $1.23 in the past 30 days. Shares of the company have soared 156.5% in the past year compared with the industry’s 17.5% growth.

TMDX’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 287.50%. In the last reported quarter, it delivered an earnings surprise of 66.67%.

Estimates for Boston Scientific’s 2024 EPS have increased 3.4% to $2.40 in the past 60 days. In the past year, shares of BSX have risen 57.6% compared with the industry’s 19.5% growth.

In the last reported quarter, BSX delivered an earnings surprise of 6.90%. Its earnings surpassed estimates in each of the trailing four quarters, the average surprise being 7.18%.

Zacks Investment Research

CVRx CVRX recently announced the publication of new data supporting its Barostim technology for treating heart failure. The data was published in the Journal of the American College of Cardiology: Heart Failure.

The publication builds on the data from the BeAT-HF trial published in 2024 in the European Journal of Heart Failure, demonstrating the long-term sustained symptomatic benefits of Barostim in heart failure patients with reduced ejection fraction.

Shares of CVRX gained 3.2% on Friday on the announcement of the publication of the new data.

More on CVRX’s New Study Data

Barostim technology stimulates baroreceptors located in the carotid artery wall with electrical pulses. The body's baroreflex is triggered by the pulses, which cause the heart to respond. Barostim received the FDA Breakthrough Device designation and is FDA-approved for use in heart failure patients in the United States. It has also received the CE Mark for heart failure and resistant hypertension in the European Economic Area.

Barostim was used in conjunction with guideline-directed medical therapy (GDMT) by the study participants. Comparing GDMT alone with a range of physical and psychological indicators, the participants reported feeling noticeably better. The capacity to work around the house, sleep and exercise all significantly improved as a result. Recipients reported feeling less depressed after taking Barostim. Physical measures included reduced breathing difficulties, discomfort and exhaustion and improved mobility and capacity to carry out daily tasks.

The published data showcased the durable improvements up to 24 months in the individual components of the Minnesota Living with Heart Failure and EuroQual-5D quality of life measures. The CVRx management believes that this analysis of the long-term BeAT-HF data will support the shared decision-making of patients and physicians when considering Barostim therapy.

Favorable Industry Prospects for CRVX

Per a report by Coherent Market Insights, the global cardiac implant market size was estimated to be $37.8 billion in 2022 and is projected to witness a CAGR of 8.1% during the 2022-2030 period.

Given the market potential, CVRX’s Barostim technologies’ positive study is likely to increase its demand and provide a boost to the company’s business.

Price Performance of CVRX Stock

In the past six months, CVRX’s shares have plunged 62% against the industry’s 2.1% growth. The S&P 500 has increased 9.2% in the same time frame.

Masimo Corporation MASI has announced a partnership with Qualcomm Technologies to create a next-generation smartwatch reference platform for Wear OS by Google.

The collaboration is aimed at combining Masimo's expertise in advanced biosensing technologies with Qualcomm's Snapdragon wearable platforms. This reference platform is expected to help original equipment manufacturers (OEMs) develop high-performing smartwatches more efficiently, providing accurate health tracking and superior connectivity through low-power SoCs.

Masimo’s key technologies include the widely used Masimo SET pulse oximetry, which has improved outcomes in more than 200 million patients worldwide and is recognized by the top U.S. hospitals. The company’s advanced noninvasive monitoring tools, such as the Rainbow Pulse CO-Oximetry and the Root Patient Monitoring Platform, offer continuous, reliable data across a range of clinical scenarios.

MASI also provides wearable, portable and home-based devices like the Masimo W1 Medical Watch and the Radius-7. Beyond healthcare, the company’s Consumer Audio division includes iconic brands like Bowers & Wilkins and Denon. Their diverse product offerings excel in patient care, hospital automation, and health and wellness, delivering top-tier performance across the board.

Due to the above-mentioned portfolio, the product is likely to witness substantial demand in the field of wearables and other key technologies, which contribute to the top-line growth of the company, thus driving MASI’s share price higher.

Significance of Masimo’s Collaboration With Qualcomm

The management highlighted the collaboration as a merger of Masimo’s advanced biosensing technology and Qualcomm’s low-power Snapdragon systems, creating a powerful foundation for high-performance smartwatches. It also emphasized that this platform will enable OEMs to produce competitive and desirable wearables, enhancing the overall smartwatch market.

This partnership is aimed at enhancing Masimo's existing portfolio, which includes the Masimo W1 and the upcoming Masimo Freedom wearables, known for their precision in health monitoring. Qualcomm’s Snapdragon W5+ Gen 1 will power these next-gen devices, optimizing power efficiency and connectivity.

The collaboration is also aimed at strengthening Masimo's competitive edge, offering OEMs production-ready solutions that accelerate market entry and benefit consumers with feature-rich, data-accurate devices. The combined expertise promises to drive innovation and expand choices within the Wear OS ecosystem.

Masimo & Qualcomm Enhance Wear OS With Next-Gen Biosensing Tech

Masimo and Qualcomm’s new reference platform for Wear OS smartwatches allows OEMs to design the exterior and user interface of their devices. Masimo provides the interiors, including Snapdragon platforms and advanced biosensors.

The platform ensures premium performance with health and wellness capabilities powered by Masimo’s Signal Extraction Technology (SET), used in the Masimo W1 and upcoming Masimo Freedom wearables. This standardized package simplifies smartwatch development, offering manufacturers an easy way to incorporate high-performance biosensing and connectivity features.

Recent Collaboration

This month, Masimo partnered with Google to create a reference platform for manufacturers building Wear OS smartwatches. The platform uses Masimo’s advanced biosensing technologies to help OEMs develop high-performance smartwatches more efficiently. The platform supports the Wear OS ecosystem by offering reliable health and wellness tracking tools and seamless Android integration.

MASI Stock Price Performance

Shares of Masimo have plunged 3.8% year to date against the industry’s 9.2% growth. The S&P 500 has witnessed a 17.7% growth in the same time frame.

Favorable Earnings Surprise Trend for MASI Stock

Masimo’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 14.63%.

Zacks Rank & Other Key Picks

Currently, Masimo carries a Zacks Rank #2 (Buy).

Some other top-ranked stocks in the broader medical space are Universal Health Services UHS, Quest Diagnostics DGX and Aveanna Healthcare AVAH. While Universal Health Services sports a Zacks Rank #1 (Strong Buy), Quest Diagnostics and Aveanna Healthcare carry a Zacks Rank #2 each at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Universal Health Services has an estimated long-term growth rate of 19%. UHS’ earnings surpassed estimates in each of the trailing four quarters, the average being 14.58%.

Universal Health Services’ shares have risen 41.1% compared with the industry's 34.8% growth year to date.

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

Quest Diagnostics’ shares have risen 3.7% year to date compared with the industry’s 10.2% growth.

Aveanna Healthcare's earnings surpassed estimates in each of the trailing four quarters, the average surprise being 47.5%.

AVAH's shares have soared 104.5% year to date compared with the industry’s 15.7% growth.

Zacks Investment Research