Here’s why the shares of biotech Impedimed Limited are soaring today

The shares of medical device maker Impedimed Limited (ASX: IPD) are flying higher today after it announced that its first product for the health and wellness market was available for global pre-order.

In lunchtime trading, shares were up more than 6% at $1.635.

SOZO is the first product on its new population health platform allowing consumers to track everything from their body composition, fluid status, and hydration levels through a variety of settings.

According to the release SOZO is an intuitive digital health device and wellness platform which combines bioimpedance spectroscopy technology with artificial intelligence, creating a rapid, non-invasive scan of a person’s body providing a precise and repeatable snapshot.

Furthermore, predictive analytics in SOZO can access cloud-based historical health data to create a customised plan for the user’s personal health and wellness goals, which it believes will help individuals better manage their health conditions and track their wellness goals.

Managing director and CEO Richard Carreon had this to say on the launch:

“We are fulfilling our vision of population health in the ecosystem of health and wellness. The SOZO platform and our growing pipeline of new and innovative products will position us at the forefront of the digital health revolution. Innovation is at our core and will become the life blood of the organisation. The future is now.”

I like the look of the product and believe that it will be appealing to gyms, personal trainers, athletes, and fitness enthusiasts like myself. There is undoubtedly a growing market for health tracking and as such, I expect the product could do very well.

But I wouldn’t personally recommend making an investment purely on this announcement. Impedimed certainly has a lot going for it at the moment and could well have an exciting future. But until I see pre-order sales figures for SOZO and strong sales growth in its L-Dex lymphoedema detection product, I think I will be sitting this one out.

Until then I would suggest investors take a look at already profitable companies in the healthcare space such as CSL Limited (ASX: CSL) and Cochlear Limited (ASX: COH).

But finally, before making an investment in any shares I would highly recommend taking a look to see if you own one of these three rotten ASX shares. Each could be harming your portfolio at the moment and might be best swapped out in my opinion.

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Motley Fool contributor James Mickleboro has no position in any stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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