GE Healthcare Receives FDA Nod for CT Screening Device

GE Healthcare, a part of General Electric Company GE, recently received approval from the U.S. FDA (Food and Drug Administration) for its low dose computed tomography CT lung cancer screening option.

GE Healthcare is the first company to get the FDA approval for any CT device. The low dose CT for lung cancer screening will include new low-dose screening reference protocols. These protocols are designed as per the CT system, patient size, and the recommendations for professional medical and government organizations. Physicians can use these CT scanners to deliver low dose, short scan times, and clear and sharp images for the detection of small lung nodules.

The landmark National Lung Screening Trial NLST showed that the use of low dose CT screening is likely to reduce the mortality rate from lung cancer by 20% in comparison to chest X-ray, the other commonly used screening tool. The NLST also revealed a 6.7% reduction in the rate of death from cancer or other causes due to the use of low dose CT screening. Given that these nodules are critical for identifying lung cancer at its earliest stages when it is the most curable, the approval of low dose CT screening in the U.S should boost the company's top line and help improve sales growth dynamics, going forward.

General Electric, the parent company Of GE Healthcare, is one of the largest and most diversified technology and financial services corporations in the world with products and services ranging from aircraft engines, power generation, water processing and security technology to medical imaging, business and consumer financing, media content and industrial products. Its segments include Power & Water, Oil & Gas, Energy Management, Aviation, Healthcare, Transportation, Home & Business Solutions and GE Capital.

General Electric currently has a Zacks Rank #3 (Hold). Other stocks that look promising include Swire Pacific Limited SWRAY Lockheed Martin Corporation LMT and Northrop Grumman Corporation NOC, all carrying a Zacks Rank #2 (Buy).

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