By Khushi Mandowara
(Reuters) -GE HealthCare Technologies Inc said on Tuesday that the commercial launch of Alzheimer's treatment and related testing for patients would help drive demand for its imaging equipment at hospitals and medical centers next year.
The U.S. Centers for Medicare and Medicaid Services (CMS) has proposed broader coverage for a type of brain scan used in identifying a key Alzheimer's disease protein to determine patients' eligibility for the new treatment.
This will likely be a "profound growth opportunity" for all firms offering PET scans and molecular imaging, CEO Peter Arduini said on a post-earnings call.
The X-ray and ultrasound machine maker raised its annual profit forecast, after beating quarterly earnings estimates as the availability of electronic components improved, allowing the company to increase production and prices for its equipment.
GE HealthCare's second-quarter sales rose 11% as a surge in demand for healthcare services helped drive a recovery in the purchase of capital-intensive equipment.
Johnson & Johnson (NYSE:JNJ) and Abbott Laboratories (NYSE:ABT), which make medical devices like heart stents and implants, also reported quarterly profits above Wall Street estimates last week as more patients underwent procedures that were delayed due to the pandemic.
GE HealthCare's total quarterly sales of $4.8 billion were in line with analysts' estimates. MRI machines accounted for more than half of those sales, while $839 million came from ultrasound devices.
The company raised its annual adjusted profit forecast by 10 cents at both ends of its range. It now expects a 2023 profit of $3.70 to $3.85 per share, above expectations of $3.74 per share at the mid-point.
Excluding items, GE HealthCare earned 92 cents per share in the quarter, surpassing estimates of 87 cents, according to Refinitiv data.
Shares of the former GE unit rose pared early gains to trade down nearly 2%.