Demand for imaging to swell after approval of new Alzheimer’s drug, GE HealthCare predicts
Demand for imaging is expected to grow in the coming months after the approval of a new treatment for Alzheimer’s disease, industry giant GE HealthCare predicted Tuesday.
The Centers for Medicare & Medicaid Services recently proposed expanding coverage for PET scans used to pinpoint patients who are candidates for Leqembi and other such pharmaceuticals. It also would require follow-up MRIs after infusions to gauge progress.
One analysis estimated that the treatment could spur $500 million in new Medicare spending on imaging. GE HealthCare CEO Peter Arduini said he sees “opportunity” to work with large integrated delivery networks on managing their nuclear medicine fleet and providing Alzheimer’s care across rural and urban settings.
“On the size of the opportunity, I think it’s a little too early to say,” Arduini told investors during the company’s quarterly earnings call, according to a transcript provided by Seeking Alpha. “I think it’s not a huge opportunity in ’23. But if you look over ’24, ’25, ’26, depending on the uptake of the drug, which is going to be heavily tied to a companion diagnostic reimbursement, therapy diagnostic and the follow-on drugs, we believe that this is a pretty profound growth opportunity across the space. But time will tell how that ultimately plays out.”
For the quarter, GE HealthCare recorded imaging revenues of $2.6 billion, representing “strong” year-over-year organic growth of 9%. This was driven by molecular imaging, CT and MRI, the company said, highlighting supply chain improvements, stable demand, new product introductions and pricing increases. The company also logged $839 million in revenues from its ultrasound segment, up 3% organically when compared to the previous year. Cardiovascular and women’s health helped drive the segment, leaders noted, including new product introductions equipped with artificial intelligence capabilities.
GE HealthCare raised its annual profit forecast after besting previous quarterly earnings estimates. The Chicago-based manufacturer saw improvements in the availability of key electronic components, allowing it to bolster both production and prices for its products.
“Fundamental to our algorithm going forward is price and productivity offsetting inflation, along with the benefits of new products,” Chief Financial Officer James Saccaro told investors.
Marty Stempniak has covered healthcare since 2012, with his byline appearing in the American Hospital Association's member magazine, Modern Healthcare and McKnight's. Prior to that, he wrote about village government and local business for his hometown newspaper in Oak Park, Illinois. He won a Peter Lisagor and Gold EXCEL awards in 2017 for his coverage of the opioid epidemic.