Interesting distribution agreement signed with Phillips for the US today.

https://cdn-api.markitdigital.com/apiman-gateway/ASX/asx-research/1.0/file/2924-02858402-3A651737&v=fc9bdb61fe50ea61f8225e24ce041a0e155a9400

The market seems to like the announcement with about a 30% pop in share price this morning. The devil will be in the detail so I'll tune in to the briefing next week. In my experience in the past (with distribution agreements), adding things to product catalogues is one thing but unless this is retiring quota for Phillips sales reps it probably won't be as valuable as the market hopes.

Interestingly according to my favourite AI's Phillips is only #3 in US market share:

Siemens Healthineers:

• Estimated to hold around 25-30% of the US market share. It has a strong presence across various modalities and is particularly dominant in MRI and CT.

GE Healthcare:

• Another major player in the US, with an estimated market share of about 20-25%. It is also well-established across various modalities and has a significant presence in ultrasound and molecular imaging.

Philips Healthcare:

• Estimated to hold around 15-20% of the US market. While slightly behind the top two, it maintains a strong presence in various modalities, including CT, MRI, and ultrasound.

Big pop of about 16% yesterday with a flurry of trading at the open and just before close (higher than normal volumes) and for the conspiracy theorists … no news!

I’m not sure if anyone else has any idea what’s happening. I’m guessing it might be buying ahead of the S&P index rebalances that were supposed to be on Friday (maybe 4DX is being promoted into a bigger index).

The most recent market update was positive (i.e. USA equivalent of Medicare has decided on the rebate rates for the services) but that’s nearly a month ago.

DISC: Held IRL and SM (but feeling a bit lonely here in Strawman)