Sector Spotlight: Medical Device Stocks (WHSI, BHC, GMVD, EAR)

The medical device sector has long been a highly profitable area for investors. As the industry has matured and become more competitive, however, investors have had to be more careful when selecting stocks in this high-growth industry.

The medical device market is composed of companies that produce equipment used for diagnosing, treating, and monitoring medical conditions. This market is undergoing significant change.

Beyond 2022, the escalating prevalence and incidence of chronic diseases will have a substantial impact on the global medical device market. This promotes the use of ever-improving technology tools for early disease detection as well as the development of intelligent equipment such as 3D printing, robots, and the internet of things.

Consequently, the market for medical device technology will increase at a CAGR of 4.9% between 2022 and 2027. Predictions call for a rise from $465.5 billion in 2022 to $591.3 billion in 2027.

In this article, we will examine a few medical device stocks to put on your watchlist.

Wearable Health Solutions Inc. (OTC: WHSI) is a stock to keep an eye on within this sector. WHSI is an established producer and provider of Personal Emergency Response System (PERS) devices to the rapidly expanding medical alarm and eHealth industries. The device that Wearable Health Solutions produces is known as the iHelpMax 4G.

The iHelpMAX and its platform can be linked to a number of other devices so that vital signs can be monitored remotely and collected in real time. This remote monitoring enables telehealth capabilities for the unit, a feature that will set WHSI up for success in the ever-changing medical device market.

According to United Nations statistics, the population over the age of 75 will increase by 61.6% by 2060 compared to its current size. In light of the fact that 90% of seniors intend to remain in their homes for the next five to ten years, the demand for remote monitoring devices will increase significantly.

WHSI reported serving 8,500 end users of their PERS device, the iHelpMAX 4G, as of October 2022, with an active order book containing over 2,000 potential activations. In its latest report on the $1.5 billion Remote Personal Care (PERS) market, published on November 2, 2022, Litchfield Hills Research reaffirms its ‘Buy’ rating and $0.20 price target for Wearable Health Solutions, Inc. (OTC: WHSI). According to Litchfield Research, a ‘Buy’ rating signifies an expectation that the stock will provide a total return of 15% or more over the next 12 months.

Analyst Theodore O’Neill expects WHSI to overcome logistical headwinds, achieve triple-digit growth, and generate $2,650,000 in revenue in FY2023. WHSI has a good product, the iHelpMAX 4G, a rapidly expanding market, and an optimistic outlook for the future; therefore, WHSI should be on your watchlist for healthcare penny stocks.

Bausch Health Companies (NYSE:BHC) – Bausch Health Companies Inc. (NYSE/TSX: BHC) is a global diversified pharmaceutical compan. BHC creates, manufactures, and distributes a vast array of products. Through their controlling interest in Bausch + Lomb, their primary focus is on gastroenterology, hepatology, neurology, dermatology, international pharmaceuticals, and eye health.

In a lawsuit filed against Padagis Israel Pharmaceuticals LTD and Padagis US LLC, the US District Court for the District of New Jersey ruled in BHC’s favor regarding DUOBRII and BRYHALI last week. According to the ruling, the District Court found all the asserted patents valid and infringed. The current decision will serve to prevent approval of Padagis BRYHALI and DUOBRII generics until patent expiry in 2031 and 2036, respectively. Seana Carson, Executive Vice President and General Counsel stated, “We are pleased with this outcome. This decision is a reflection of the strength of our intellectual property, and our commitment to defending our patent portfolio.”

G Medical Innovations Holdings Ltd. (NASDAQ: GMVD) – is a healthcare company focused on the development of next generation mHealth and telemedicine solutions and monitoring service platforms.

The company’s current product lines include its Prizma medical device, a clinical-grade device that can transform nearly any smartphone into a medical monitoring device, allowing healthcare providers and individuals to monitor, manage, and share a wide range of vital signs and biometric indicators.

Last week, GMVD announced that it received two granted patents from the United States Patent and Trademark Office for its monitoring products marketed in the U.S. market.

One patent includes a sensing mechanism that enables the monitoring system to analyze sensing conditions, such as pressure, ambient temperature, light, conductivity, etc., prior to and during continuous monitoring of physiological signals from the body. This allows for greater and more precise sensing, which reduces false positive readings, including false alarms.

The second patent converts the concept of the conventional smartphone flip case into a medical case, enabling consumers and patients to carry their smartphones and monitoring device at the same time, thereby ensuring the ability to monitor vital signs and other parameters.

Eargo (NASDAQ: EAR) is a medical device company focused on hearing aids. Eargo’s hearing aids are the first of their kind; they are virtually invisible, rechargeable, completely in-canal, FDA-regulated, Class I or II exempt devices that are intended to compensate for mild to moderate hearing loss.

They distinguish themselves by empowering consumers to purchase hearing aids online, at retail locations, or over the phone, and by providing convenient consultation and support from hearing professionals via phone, text, email, and video chat.

People can buy Eargo hearing aids for about half the price of similar hearing aids bought through traditional channels in the United States.

EAR just said that Patient Square Capital, a company that invests in healthcare, is now the majority owner of the company.

Patient Square now owns about 76.3% of Eargo stock thanks to a recent rights offering of common stock and the conversion of senior secured convertible notes that it bought this summer.

Eargo said the offering brought in about $32.3 million, including another $5.5 million investment from Patient Square.

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