Inverness Medical Innovations Inc.IMA

Morningstar Rating

Stock Research and Analysis

by Meera Venu

Inverness Medical aims to create a new health-care model by combining diagnostic devices with health management. We have mixed feelings about this novel and untested business model.

Inverness initially carved out its niche in the point-of-care diagnostic Read more

Bulls Say

As the population ages, home health management will become increasingly important, and payers will emphasize home monitoring in treatment plans.

Inverness offers point-of-care devices in some high-growth markets. If those devices can sustain or increase share in the cardiology and oncology markets, they can track high industry growth rates.

Inverness' health-care model could prove more scalable than peers' if the home monitoring devices prove reliable and nursing costs are kept low. Read more

Bears Say

The point-of-care diagnostic and health management business combination is new and unproven. Costs may not be as scalable as predicted, and patient compliance rates might drop.

In general, disease management cost savings have been unimpressive. Payers could pull out or not initiate contracts due to underperformance.

The economic downturn could put a strain on health management budgets and reduce contract renewals or sales. Heavy competition can also make contract renewal difficult. Read more

Strategy

Inverness seeks to expand its business through acquisitions and internally developed projects. Specifically, the firm wants to increase distribution of its professional diagnostic products abroad and Read more

Management

On the whole, we think Inverness' corporate governance is fair and give the firm a C Stewardship Grade. The executives at the helm have a great deal of experience in the diagnostics sector and have served together since the early days of Inverness. Read more

Profile

Inverness Medical Innovations develops and markets consumer and professional point-of-care diagnostic devices and nutritional supplements. The firm's devices target the Read more

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