Inogen, Inc. INGN recently announced a strategic collaboration with Jiangsu Yuyue Medical Equipment & Supply Co., Ltd. (Yuwell), a global home healthcare medical device manufacturer with a comprehensive portfolio of respiratory products.

The partnership with Yuwell marks a crucial milestone in accelerating Inogen's growth strategy. By broadening its product portfolio, expanding its global footprint, and strengthening its innovation pipeline, Inogen aims to be well-equipped to seize new market opportunities.

Likely Trend of INGN Stock Following the News

Following the announcement, shares of the company closed flat at $11.48 on Monday. In the past six months, INGN shares have gained 22.7% compared with the industry’s 6.7% growth. The S&P 500 increased 10.8% in the same time frame.

The collaboration with Yuwell is beneficial for INGN stock price as it strengthens the company's global presence, especially in high-growth international markets, while enhancing its product portfolio with innovative offerings. This partnership positions Inogen to capitalize on new revenue opportunities, driving long-term financial growth and diversifying its income streams. By signaling a clear commitment to innovation and market expansion, the deal boosts investor confidence, which could lead to increased demand for the stock and a positive impact on its valuation over time.

Meanwhile, INGN currently has a market capitalization of $273.4 million. In the last reported quarter, INGN delivered an earnings surprise of 50.98%.

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More on the INGN and Yuwell Collaboration

The strategic partnership between Inogen and Yuwell aims to expand Inogen’s product portfolio by distributing select respiratory products in the United States and other key markets while enhancing its innovation pipeline through R&D collaboration. Additionally, the partnership is set to accelerate Inogen’s entry into the Chinese market. As part of the agreement, Yuwell, through its affiliate, is likely to invest approximately $27.2 million in Inogen, acquiring a 9.9% equity stake. This investment not only solidifies the partnership but also strengthens Inogen’s financial position.

The collaboration agreement will become effective immediately, while the purchase of the equity from Inogen is expected to close during the first quarter of 2025, subject to certain customary closing conditions.

More on INGN’s Robust Product Portfolio

Inogen’s expanding product portfolio is a significant driver of its growth. It offers a range of oxygen concentrator solutions for both portable and stationary use. The flagship Inogen One G4 provides a single-solution portable oxygen concentrator (POC), while the Inogen At Home is designed for patients requiring oxygen therapy during sleep.

In October, Inogen introduced the Rove 4 POC in the United States, featuring patented pulse-dose Intelligent Delivery Technology. The company also received FDA clearance for the Inogen Rove 6, which launched in July 2023, marking the first POC with an eight-year expected service life, a feature also extended to the Inogen One G5. Inogen’s products are compatible with its connectivity platform, Inogen Connect, allowing remote monitoring and software updates on both Apple and Android devices.

Inogen’s ongoing commitment to innovation is evident in its robust R&D investments aimed at expanding its product offerings. The company focuses on both developing new products and improving existing ones, with a particular emphasis on clinical research. As part of its strategy, Inogen continues to invest in its engineering and technology teams to drive advancements in product development and manufacturing processes. The company’s R&D efforts are geared toward meeting evolving patient preferences in oxygen therapy and expanding its product portfolio, ensuring it remains competitive in the market.

INGN’s Recent Development

Inogen recently announced preliminary revenues for the fourth quarter and full year 2024.

Inogen’s preliminary full-year 2024 total revenues are projected to be between $334.5 million and $335.5 million, reflecting a 6% increase from 2023. This estimate surpassed the Zacks Consensus Estimate of $329.5 million and exceeds the company's previous guidance of $329 million to $331 million. Management attributes the strong performance to double-digit growth in business-to-business revenues, while efforts to stabilize direct-to-consumer revenue and enhance profitability further strengthen the outlook for the stock.

In December 2024, INGN announced the FDA 510(k) clearance for the SIMEOX 200 Airway Clearance Device. The clearance is likely to expand INGN’s ability to market the device and meet the various needs of patients with chronic respiratory diseases in the United States.

INGN’s Zacks Rank & Other Stocks to Consider

INGN carries a Zacks Rank #2 (Buy) at present.

Some other top-ranked stocks in the broader medical space are Cardinal Health, Inc. CAH, ResMed Inc. RMD and DaVita Inc. DVA.

Cardinal Health, carrying a Zacks Rank #2 at present, has an estimated long-term growth rate of 10.5%. CAH’s earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 11.2%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Cardinal Health’s shares have gained 21.7% compared with the industry’s 6.1% growth in the past year.

ResMed, carrying a Zacks Rank of 2 at present, has an estimated long-term growth rate of 14.8%. RMD’s earnings surpassed estimates in each of the trailing four quarters, with the average being 6.4%.

ResMed has gained 32.4% compared with the industry’s 16.5% growth in the past year.

DaVita, sporting a Zacks Rank of 1 at present, has an estimated long-term growth rate of 18.3%. DVA’s earnings surpassed estimates in three of the trailing four quarters and missed once, with the average surprise being 10.6%.

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