Yahoo Finance Omnicell (OMCL) Inks New Deal to Manage Controlled Substances
Omnicell, Inc. OMCL recently partnered with Fresenius Kabi to bring new innovative pharmacy technology to U.S. hospitals and health systems to support safety and efficiency in dispensing controlled substances in patient care areas. Fresenius Kabi is a global healthcare company specializing in lifesaving medicines and technologies for infusion, transfusion and clinical nutrition.
This collaboration will combine Omnicell’s Controlled Substance Dispenser (CSD) automation workflow with Fresenius Kabi Simplist MicroVault pre-filled syringes to offer healthcare providers advanced tools and technology for safe and efficient dispensing of controlled substances.
Per Omnicell’s management, the company is delivering solutions to help customers manage controlled substances, reduce diversion, optimize inventory and enhance clinical workflows to support optimal care and patient safety through its innovative collaborations.
Few Words on CSD & Simplist MicroVault Pre-filled Syringes
Omnicell’s CSD is a high-volume, automated single-dose dispensing solution that enables pharmacies to manage controlled substances better, decrease diversion and save nursing time. By delivering only one dose at a time, CSD is intended to eliminate the need for countbacks and reduce the time required to resolve discrepancies, thereby giving nurses more time for direct patient care and discouraging diversion.
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U.S. hospitals employ the Fresenius Kabi Simplist MicroVault pre-filled syringes to help reduce the time taken by nurses in preparing doses and documenting waste. Compared to traditional medication administration practices, the error rate with these pre-filled syringes is four times lower.
More on the Collaboration
Omnicell has designed new cassettes for its CSD, particularly for Fresenius Kabi Simplist MicroVault pre-filled syringes, giving customers more flexibility with their medication supply chain and improved controlled substance management initiatives. The new cassettes for the Omnicell CSD will incorporate MicroVault packaging for a wide range of low-dose narcotic medications, including morphine, hydromorphone and fentanyl. The syringes are single-unit doses that are manufacturer-prepared in the United States and have a 24-month shelf life, ensuring best practices for medication administration.
The new Fresenius Kabi cassettes for the Omnicell CSD are currently available. The Fresenius Kabi-Omnicell partnership and offering is a major step toward the Autonomous Pharmacy vision, which is a roadmap to create a zero-error, fully automated medication management infrastructure.
Industry Prospects
Per a report published in Fact.MR, the market of the controlled substances is projected to witness a CAGR of 4% through 2028. Growing adoption of controlled substances for management and treatment of a wide range of medical conditions, a notable increase in advertising campaigns to promote public awareness on the use of controlled substances and substantial efforts undertaken by the World Health Organization (WHO) to improve accessibility to controlled substances, among other factors, are driving the market.
Further, per the company, managing controlled substances is a huge challenge for hospitals and clinics. According to a recent study, more than 148 million doses of medicine were lost in 2019, jeopardizing the safety of both patients and workers.
Given the market prospects, Omnicell’s recent collaboration with Fresenius Kabi to offer safe and efficient dispensing of controlled substances seems well-timed and strategic.
Notable Developments
Omnicell was engaged in a number of significant developments in September 2021.
The company concluded the previously announced acquisition of FDS Amplicare. According to the terms of the agreement, the acquisition price was $177 million, subject to fulfillment of customary adjustments. This buyout expands Omnicell’s EnlivenHealth division with the addition of a comprehensive and complementary suite of SaaS financial management, analytics, and population health solutions.
The company also opened a new software development center through its India subsidiary based in Bangalore. The company’s new center will focus on product innovations to advance its strategy to deliver the cloud-based infrastructure to support the Autonomous Pharmacy. This new center is expected to bolster Omnicell’s cloud-based solutions portfolio.
Share Price Performance
The stock has outperformed its industry over the past year. It has rallied 81.1% against the industry’s 29.5% decline.
Zacks Rank and Key Picks
Currently, Omnicell carries a Zacks Rank #3 (Hold).
A few better-ranked stocks in the broader medical space are Chemed Corporation CHE, National Vision Holdings, Inc. EYE and Laboratory Corporation of America Holdings or LabCorp LH, each carrying a Zacks Rank #2 (Buy).
Chemed has a long-term earnings growth rate of 7.7%. The company surpassed earnings estimates in three of the trailing four quarters and missed in one, delivering a surprise of 5.6%, on average.
Over the past year, Chemed has outperformed its industry. CHE has gained 2.8% against a 35.1% industry decline. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
National Vision has a long-term earnings growth rate of 23%. The company surpassed earnings estimates in the trailing four quarters, delivering an average surprise of 113.1%.
National Vision has outperformed the industry it belongs to in the past year. EYE has gained 15.9% versus the industry’s 1.7% growth.
LabCorp has a long-term earnings growth rate of 10.6%. The company surpassed earnings estimates in the trailing four quarters, delivering an average surprise of 25.7%.
LabCorp has outperformed the industry it belongs to in the past year. LH has gained 42.4% versus the industry’s 18% growth.
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