Published on 6 Dec 2023 on Zacks via Yahoo Finance

Omnicell's (OMCL) Global Expansion Strong, Macro Issues Ail

Omnicell’s OMCL geographic expansion and portfolio development aid growth. However, persistent inflationary pressures pose a threat to Omnicell’s cost-saving actions. The stock carries a Zacks Rank #3 (Hold).

Omnicell is progressing well with its three-legged strategy that covers market expansion through the delivery of differentiated, innovative solutions, expansion into new markets, primarily outside the United States, and expansion through strategic partnerships and the acquisition of new technologies.In this line, the company earlier expanded its autonomous pharmacy portfolio with the strategic and accretive acquisition of PSG's 340B Link business, now called Omnicell 340B. 340B is a significant part of an increasingly complex pharmacy supply chain, requiring solutions designed to help providers manage compliance and reporting while capturing drug cost savings.

Omnicell has also accelerated a shift to cloud-based solutions and tech-enabled services through the launches of Inventory Optimization Service (formerly Omnicell One) and Central Pharmacy Dispensing Services. In the third quarter of 2023, several of OMCL’s health system partners extended their sole-source agreements, including a Florida-based health system that plans to replace its existing point-of-care footprint with Omnicell XT systems. One of Georgia's largest healthcare networks has contracted for Omnicell's inventory optimization service to help strengthen its pharmacy supply chain.