Philips To Showcase Latest Healthcare Offering At SLEEP 2016

Koninklijke Philips N.V’s (NYSE:PHG) business arm Philips Respironics has broadened its healthcare portfolio with the introduction of Patient Adherence Management Service (“PAMS”) that will boost the company’s connectivity model in sleep and respiratory care.

SLEEP 2016

In fact Philips is showcasing a wide array of sleep and respiratory devices at the ongoing 30th Annual Meeting of the Associated Professional Sleep Societies, SLEEP 2016 event (June 11-15). The company will also showcase Care Orchestrator care management application, a highly advanced cloud solution, which enables data, informatics and intelligence integration for providers, payers and patients in a comprehensive manner.

Care Orchestrator can be seamlesslesly connected to Philips’ entire range of sleep applications including DreamStation BiPAP ASV and BiPAP AVAPS, Trilogy, EverFlo, SimplyGo and iNeb.

Power of PAMS

Powered by Philips’ tried and tested technologies including EncoreAnywhere software, DreamStation PAP therapy devices and DreamMapper patient engagement application, PAMS is expected to offer a major boost to overall patient care. PAMS has already proved its mettle, boosting adherence rates up to 24% within the first 90 days and 16% or more in the first 30 days of therapy. Also, for CPAP patients adherence rates have shot up by 49% adding to its commercial appeal.

Philips has a decade old solid reputation of providing cloud-based data sharing technology and analytics for patients suffering from respiratory and sleep disorder. It has developed a acute knowledge of sleep apnea and EncoreAnywhere currently manages data of more than 7 million patients. PAMS is just the latest addition to this portfolio and pledges to address pressing patient problems in contemporary times.

Macroeconomic Woes Mar Prospects

Despite a strong foothold in the healthcare market, challenging market conditions, and mixed outlook in China, Russia and Latin America have dimmed the company’s prospects. Also, a sluggish macroeconomic outlook has impaired the potential of the healthcare business which is expected to grow in low-single digits in 2016. We believe the recent product launches will be unable to collect in significant profits if the underlying conditions do not change.

Apart from this, escalating taxes and restructuring charges associated with the Lighting business are proving to be major headwinds over the near term, dealing heavy blow to its bottom line. Going forward, the company forecasts discontinued operations and separation costs in the range of €200–€300 million and restructuring costs of €50 million. These challenges are expected to impact this Zacks Rank #5 (Strong Sell) company’s 2016 EBITA by €80–€100 million.

Some better-ranked stocks include Jason Industries, Inc. (NASDAQ:JASN) , Kopin Corp. (NASDAQ:KOPN) and Research Frontiers Inc. (NASDAQ:REFR) . All these three stocks hold Zacks Rank #2 (Buy).