Henry Schein To Offer CAEK's HIPAA Software LayerCompliance

Leading distributor of health care products and services, Henry Schein, Inc. (NASDAQ:HSIC) is constantly focusing on expanding its dental business which accounts for nearly half of the its total revenues. Keeping in line with this, Henry Schein Dental entered into an agreement to distribute CAEK, Inc.’s flagship product and a Health Insurance Portability and Accountability Act (HIPAA) software, LayerCompliance. Notably, CAEK is a Software-as-a-Service (SaaS) company focusing on compliance-related software for the healthcare industry.

LayerCompliance is a cloud-based tool to help doctors navigate the requirements of the HIPAA. Notably, HIPAA is a federal law that provides privacy and security standards to protect patients' health information. LayerCompliance helps users manage their data security program through an online dashboard and tools that help streamline the process.

Oral health care expenditures in the dental industry are likely to rise with the increase in population. We believe this will boost demand for Henry Schein’s products and services as well.

Meanwhile, management has entered into a three-year agreement with DENTSPLY SIRONA to broaden Henry Schein’s digital dentistry product line. Moreover, during the second quarter, Henry Schein announced the extension of its agreement with DENTSPLY SIRONA. Per the extended agreement, that is valid till Dec 31, 2020, Henry Schein will include the CEREC CAD/CAM restoration system and the Schick line of imaging sensors. Henry Schein will also be entitled to represent the entire DENTSPLY SIRONA product line starting Sep 1, 2017.

In addition, Henry Schein will continue to offer Planmeca, 3Shape and 3M as well as the dental equipment and consumer products from its longstanding partner Danaher (NYSE:DHR) under the KaVo Kerr brands.

Over the past one year, Henry Schein has outperformed the broader industry. The stock has gained 5.5%, compared with the 2.9% gain of the broader industry.

Zacks Rank & Key Picks

Henry Schein currently carries a Zacks Rank #3 (Hold). A few better-ranked medical stocks are Edwards Lifesciences Corp. (NYSE:EW) , Lantheus Holdings, Inc. (NASDAQ:LNTH) and Align Technology, Inc. (NASDAQ:ALGN) . Edwards Lifesciences and Align Technology sport a Zacks Rank #1 (Strong Buy), while Lantheus Holdings carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Edwards Lifesciences has a long-term expected earnings growth rate of 15.2%. The stock has gained around 3.2% over the last three months.

Align Technology has a long-term expected earnings growth rate of 26.6%. The stock has rallied roughly 29.6% over the last three months.

Lantheus Holdings has a long-term expected earnings growth rate of 12.5%. The stock has gained 66.1% over the last six months.

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