BioTelemetry, Inc.’s BEAT Telcare division recently signed a partnership agreement with Onduo — a joint venture by Verily (an Alphabet company) and Sanofi.
Per the agreement, Telcare will act as an authorized provider of remote blood glucose systems along with the resulting data for patients enrolled in diabetes management program of Onduo. We believe this deal will boost the top line significantly.
Targeting Type 2 diabetes patients, Onduo will utilize Telcare’s ability to deliver real-time blood glucose results to develop care management programs.
Interestingly, BioTelemetry acquiredTelcare in December 2016. Notably, Telcare is the first company to receive FDA clearance for a cellular-enabled Blood Glucose Monitoring (BGM) system. Per management, this acquisition will enable BioTelemetryto apply its expertise in remote monitoring to the diabetes market and also increase its presence in the digital population health management market.
Per a report by Mordor Intelligence, the global market for diabetes care devices is projected to reach a value of $30.25 billion by 2021, at a CAGR of 5.93%. Moreover, the International Diabetes Federation (IDF) estimates that by 2035, the worldwide incidence of people suffering from diabetes will reach 592 million.
However, the diabetes market is dominated by well-established players, Abbott (ABT) being the most prominent one. In this space, Abbott recently announced the receipt of FDA approval for the FreeStyle Libre Flash glucose monitoring system in the United States.
Share Price Performance
BioTelemetry has been gaining investor confidence on consistently positive results. Over the last month, the company’s share price outperformed the broader industry. The stock has gained 3.4%, in contrast to the broader industry’s 0.4% decline. The company has also outperformed the 2.6% gain of the S&P 500 market.
Zacks Rank & Key Picks
BioTelemetry currently carries a Zacks Rank #5 (Strong Sell). A few better-ranked stocks in the broader medical sector are PetMed Express, Inc. PETS, Myriad Genetics, Inc. MYGN and Luminex Corporation LMNX. PetMed, Luminex and Myriad sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
PetMed has a long-term expected earnings growth rate of 10%. The stock has rallied roughly 74.1% in a year.
Myriad Genetics has a long-term expected earnings growth rate of 15%. The stock has soared 107.9% over a year.
Luminex has a long-term expected earnings growth rate of 16.3%. The stock has gained 7.9% over the past year.
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