8 Most Promising Medical Stocks According to Hedge Funds

6. Solventum Corporation (NYSE:SOLV)

Number of Hedge Fund Holders: 37 

Solventum Corporation (NYSE:SOLV), a newly independent healthcare company that spun off from 3M in April 2024, develops and sells a wide range of medical products, including wound care, surgical supplies, dental products, healthcare software, and filtration systems.

Solventum Corp is implementing a 3-phased approach to stabilize its business, reposition for growth, and optimize its portfolio. Phase 1 involves establishing a new mission, acquiring talent, and restructuring for agility while managing its separation from 3M. As part of the separation, the company is relocating manufacturing lines from 67 plants to 29 Solventum plants, with 2 new facilities under construction.

Additionally, Solventum Corporation (NYSE:SOLV) is restructuring its distribution and supply chain by reducing the number of distribution centers from 122 to 73. The rebranding efforts are extensive, covering over 90 countries, and management has adjusted commercial distribution models in more than 60 countries.

In Q2 2024, Solventum Corp reported revenue of $2.08 billion. The MedSurg segment grew by 1.8% year-over-year, driven by negative pressure wound therapy and antimicrobial IV site management solutions. However, the Dental segment saw a 2% decline due to volume pressures from challenging market conditions. The HIS segment increased by 3.6%, fueled by the adoption of the 360 Encompass and steady performance management solutions. The Purification and Filtration segment experienced a slight decrease of 0.9%, impacted by performance in drinking water filtration.