- Related Symbols
- ROBO
Omnicell: Innovating Medication Management and Driving Growth in the Healthcare Sector
In this ROBO Global Robotics and Automation Index spotlight, we focus on Omnicell Inc (OMCL). The index underlies the $1.13 billion ROBO Global Robotics and Automation ETF (ROBO B-). Here, we explore what makes Omnicell unique within the Healthcare Subsector and dive into its recent performance.Omnicell is a leading provider of medication management solutions. It is revolutionizing pharmacy care delivery through a combination of robotics, smart devices, software, and services. The company designs solutions to help healthcare facilities worldwide improve efficiency, reduce costs, support compliance, and enhance patient safety.
Launched in April 2024, Omnicell’s flagship product — the XT Amplify automated dispensing system — along with other hardware offerings, generates over half of its revenue. These systems also drive recurring revenue through post-installation technical support, software solutions like inventory management, and consumables. By leveraging these avenues, Omnicell aims to increase its recurring revenue to 21% of total revenue by the end of 2024, up from 19% in 2023. According to estimates, Omnicell’s technology could cut nurse medication retrieval time by 54%, reduce time spent by pharmacists on distribution tasks by 75%, and provide access to 97% of limited-distribution drugs.
In Q2, Omnicell reported total revenue of $277 million. This is an increase of $31 million, or 12%, over the previous quarter, but a decrease of 7% year-over-year. The decline was primarily due to macroeconomic factors and the product life cycle of the XT Amplify system. Despite these challenges, the company has exceeded consensus earnings per share (EPS) estimates over the past four quarters.
With a backlog of $1.1 billion, reflecting robust demand for its products, Omnicell serves approximately 80% of all retail pharmacies in the United States. In addition, it holds long-term sole-source agreements with more than half of the top 300 health systems. It also owns an extensive patent portfolio, with over 500 active patents worldwide.
For more news, information, and analysis, visit our Disruptive Technology Channel.
VettaFi LLC (“VettaFi”) is the index provider for ROBO, for which it receives an index licensing fee. However, ROBO is not issued, sponsored, endorsed or sold by VettaFi, and VettaFi has no obligation or liability in connection with the issuance, administration, marketing, or trading of ROBO.
More Commentary
Performance data shown is past performance and is no guarantee of future results. Current performance may be higher or lower than the performance data quoted. Yield and return will vary, therefore you have a gain or loss when you sell your shares. For standard quarterly performance, go to the fund's Snapshot page by clicking on the ETF/ETP's symbol.
ETFs may trade at a premium or discount to their NAV and are subject to the market fluctuations of their underlying investments.
For iShares ETFs, Fidelity receives compensation from the ETF sponsor and/or its affiliates in connection with an exclusive long-term marketing program that includes promotion of iShares ETFs and inclusion of iShares funds in certain FBS platforms and investment programs. Please note, this security will not be marginable for 30 days from the settlement date, at which time it will automatically become eligible for margin collateral. Additional information about the sources, amounts, and terms of compensation can be found in the ETF's prospectus and related documents. Fidelity may add or waive commissions on ETFs without prior notice. BlackRock and iShares are registered trademarks of BlackRock, Inc. and its affiliates.
FBS receives compensation from the fund's advisor or its affiliates in connection with a marketing program that includes the promotion of this security and other ETFs to customers ("Marketing Program"). The Marketing Program creates incentives for FBS to encourage the purchase of certain ETFs. Additional information about the sources, amounts, and terms of compensation is in the ETF's prospectus and related documents. Please note that this security will not be marginable for 30 days from the settlement date, at which time it will automatically become eligible for margin collateral.
News, commentary (including "Related Symbols") and events are from third-party sources unaffiliated with Fidelity. Fidelity does not endorse or adopt their content. Fidelity makes no guarantees that information supplied is accurate, complete, or timely, and does not provide any warranties regarding results obtained from their use.
Any data, charts and other information provided on this page are intended to help self-directed investors evaluate exchange traded products (ETPs), including, but limited to exchange traded funds (ETFs) and exchange traded notes (ETNs). Criteria and inputs entered, including the choice to make ETP comparisons, are at the sole discretion of the user and are solely for the convenience of the user. Analyst opinions, ratings and reports are provided by third-parties unaffiliated with Fidelity. All information supplied or obtained from this page is for informational purposes only and should not be considered investment advice or guidance, an offer of or a solicitation of an offer to buy or sell a particular security, or a recommendation or endorsement by Fidelity of any security or investment strategy. Fidelity does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating ETPs. Fidelity makes no guarantees that information supplied is accurate, complete, or timely, and does not provide any warranties regarding results obtained from their use. Determine which securities are right for you based on your investment objectives, risk tolerance, financial situation and other individual factors and re-evaluate them on a periodic basis.
Before investing in any exchange traded product, you should consider its investment objective, risks, charges and expenses. Contact Fidelity for a prospectus, offering circular or, if available, a summary prospectus containing this information. Read it carefully.