At the 96th annual meeting of the Radiological Society of North America (RSNA) in Chicago, GE Healthcare, a unit of General Electric (GE), showcased its next generation wireless, digital X-ray detector. The new device, called FlashPad, received the 510k clearance from the US Food and Drug administration. This sophisticated, next-gen detector is compatible across a wide range of GE X-ray products.
It is the sole wireless digital detector, which can aid advanced applications like VolumeRAD and Dual Energy Subtraction. The former is a digital tomosynthesis procedure for radiography that removes overlaying and underlying structures while the latter produces chest or abdominal images without obstructions from overlying bones. The design of the FlashPad device further facilitates efficient handling particularly in specialized areas like pediatric work, intensive care and trauma.
General Electric has one of the best infrastructure franchises worldwide with solid organic growth rates, exposure to favorable secular trends and a large installed base supporting a growing annuity-like service business. Infrastructure businesses of the company are helping to build energy, health, transportation and technology infrastructure of the new century.
GE Healthcare has expertise in medical imaging and information technologies, medical diagnostics, patient monitoring systems, disease research, drug discovery and biopharmaceutical manufacturing technologies.
General Electric however operates in a highly competitive climate, characterized by changing technology that requires continuing research and development. The company remains focused on product leadership, expanding its core technologies, and creating a lower cost position. During the third quarter of 2010, General Electric invested above 5% of its industrial revenue back into R&D, surging 21% year over year.
However, the company’s global expansion is subject to economic and political risks pertaining to diverse operating geographies.
Operating in more than 100 countries globally and employing about 300,000 people worldwide, General Electric Co. is a diversified infrastructure, finance and media company. Major competitors of GE Healthcare are Siemens Healthcare, the medical products division of Siemens AG (SI), and Philips Healthcare, a group company of Royal Philips Electronics (PHG).
We currently maintain our Neutral rating on General Electric, with a Zacks #3 Rank (short-term Hold recommendation) over the next one-to-three months.
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