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Abbott (ABT) to Expand in Booming TBI Space on New Approval
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Abbott (ABT - Free Report) has hit the headlines following the announcement of the receipt of 510(k) clearance for the company’s first rapid handheld traumatic brain injury (TBI) blood test, which will run on the company’s i-STAT Alinity platform. The latest development is expected to boost the company’s Diagnostics arm.
Per the company, this test will help clinicians review suspected mild TBI cases, including concussions. According to Abbott, TBIs, including concussions, are an alteration in brain function caused by an external force.
The TBI blood test measures specific proteins present in the blood after a TBI. More specifically, this test simultaneously measures biomarkers UCH-L1 and GFAP, proteins found in the blood after a concussion or head trauma. These two complementary biomarkers in elevated concentrations are highly correlated to brain injury.
A negative test rules out the need for a head CT scan. If positive, this test result complements CT scans to help evaluate whether the suspected patient has a TBI.
This test requires small blood sample drawn from the arm. Plasma is then extracted with a centrifuge and applied to the test's cartridge. The result is available within 15 minutes after a plasma sample is inserted.
Effectiveness of this test is expected to be quite high as according to Abbott, it is going to eliminate wait time in the emergency room and could reduce the number of unnecessary CT scans by up to 40%.
On the heels of this initial clearance, Abbott is also working on a whole blood test that would use whole blood on i-STAT at the point of care. It has also received FDA breakthrough designation for a TBI test for its Alinity i and ARCHITECT core laboratory instruments.
TBI Market Prospect
Going by a Grand View Research report, the global traumatic brain injury assessment and management devices market size was valued at USD 2.7 billion in 2019 and is expected to witness CAGR of 7.3% from 2020 to 2027.
Per the report, increasing prevalence of TBIs and rising awareness regarding brain injuries are the major factors expected to drive the market growth.
Needless to say, this latest development under this still untapped market with a fewer number of players is going to fetch Abbott a broader customer base.
Abbott’s Recent Development in Diagnostics
Abbott has been putting in a lot of effort to progress in the area of diagnostic testing for COVID-19. In the first half of 2020, Abbott developed and launched several COVID-19 tests across its testing platform for both laboratory and rapid point-of-care settings. On the third-quarter earnings call, the company noted that sold just under $900 million of COVID-19 kits. Based on this, the company expects fourth-quarter sales run rate to be around $1.3 billion to $1.4 billion.
Molecular testing, which detects if someone currently has the virus, has been in high demand during this period. In March, the company launched two COVID-19 tests — the ID NOW COVID-19 molecular test (the fastest available molecular point-of-care test delivering results within 13 minutes and positive results in five minutes) and the RealTime SARS-CoV-2 molecular test, which runs on Abbott's m2000 RealTime System located in hospitals and reference laboratories.
In addition to molecular testing during this period, the company also anticipated increased demand for other types of tests, including both antigen and antibody. In October, the company received EUA for the its AdviseDx SARS-CoV-2 IgM (Immunoglobulin M) lab-based serology test for use on the ARCHITECT and Alinity platforms.
Price Performance
Shares of Abbott have gained 30.2% in the past year compared with the industry’s 5.5% growth.
IDEXX’s long-term earnings growth rate is estimated at 15.8%. It currently carries a Zacks Rank #2.
Patterson’s long-term earnings growth rate is estimated at 11.1%. The company presently carries a Zacks Rank #2.
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Abbott (ABT) to Expand in Booming TBI Space on New Approval
Abbott (ABT - Free Report) has hit the headlines following the announcement of the receipt of 510(k) clearance for the company’s first rapid handheld traumatic brain injury (TBI) blood test, which will run on the company’s i-STAT Alinity platform. The latest development is expected to boost the company’s Diagnostics arm.
Per the company, this test will help clinicians review suspected mild TBI cases, including concussions. According to Abbott, TBIs, including concussions, are an alteration in brain function caused by an external force.
The TBI blood test measures specific proteins present in the blood after a TBI. More specifically, this test simultaneously measures biomarkers UCH-L1 and GFAP, proteins found in the blood after a concussion or head trauma. These two complementary biomarkers in elevated concentrations are highly correlated to brain injury.
A negative test rules out the need for a head CT scan. If positive, this test result complements CT scans to help evaluate whether the suspected patient has a TBI.
This test requires small blood sample drawn from the arm. Plasma is then extracted with a centrifuge and applied to the test's cartridge. The result is available within 15 minutes after a plasma sample is inserted.
Effectiveness of this test is expected to be quite high as according to Abbott, it is going to eliminate wait time in the emergency room and could reduce the number of unnecessary CT scans by up to 40%.
On the heels of this initial clearance, Abbott is also working on a whole blood test that would use whole blood on i-STAT at the point of care. It has also received FDA breakthrough designation for a TBI test for its Alinity i and ARCHITECT core laboratory instruments.
TBI Market Prospect
Going by a Grand View Research report, the global traumatic brain injury assessment and management devices market size was valued at USD 2.7 billion in 2019 and is expected to witness CAGR of 7.3% from 2020 to 2027.
Per the report, increasing prevalence of TBIs and rising awareness regarding brain injuries are the major factors expected to drive the market growth.
Needless to say, this latest development under this still untapped market with a fewer number of players is going to fetch Abbott a broader customer base.
Abbott’s Recent Development in Diagnostics
Abbott has been putting in a lot of effort to progress in the area of diagnostic testing for COVID-19. In the first half of 2020, Abbott developed and launched several COVID-19 tests across its testing platform for both laboratory and rapid point-of-care settings. On the third-quarter earnings call, the company noted that sold just under $900 million of COVID-19 kits. Based on this, the company expects fourth-quarter sales run rate to be around $1.3 billion to $1.4 billion.
Molecular testing, which detects if someone currently has the virus, has been in high demand during this period. In March, the company launched two COVID-19 tests — the ID NOW COVID-19 molecular test (the fastest available molecular point-of-care test delivering results within 13 minutes and positive results in five minutes) and the RealTime SARS-CoV-2 molecular test, which runs on Abbott's m2000 RealTime System located in hospitals and reference laboratories.
In addition to molecular testing during this period, the company also anticipated increased demand for other types of tests, including both antigen and antibody. In October, the company received EUA for the its AdviseDx SARS-CoV-2 IgM (Immunoglobulin M) lab-based serology test for use on the ARCHITECT and Alinity platforms.
Price Performance
Shares of Abbott have gained 30.2% in the past year compared with the industry’s 5.5% growth.
Zacks Rank & Stocks to Consider
Abbott currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks from the broader medical space are Amedisys (AMED - Free Report) , IDEXX Laboratories (IDXX - Free Report) and Patterson Companies (PDCO - Free Report) .
Amedisys’ long-term earnings growth rate is estimated at 14.8%. The company presently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
IDEXX’s long-term earnings growth rate is estimated at 15.8%. It currently carries a Zacks Rank #2.
Patterson’s long-term earnings growth rate is estimated at 11.1%. The company presently carries a Zacks Rank #2.
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by referendums and legislation, this industry is expected to blast from an already robust $17.7 billion in 2019 to a staggering $73.6 billion by 2027. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
See the pot stocks we're targeting >>