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LabCorp Partners OmniSeq to Grow in Immuno-Oncology Space
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Leading healthcare diagnostics company Laboratory Corporation of America Holdings (LH - Free Report) or LabCorp recently inked a distribution agreement with Roswell Park Cancer Institute’s molecular diagnostics subsidiary, OmniSeq, Inc.
Per the deal terms, LabCorp will distribute OmniSeq’s Immune Report Card and OmniSeq Comprehensive clinical assays across the United States and outside.
The company will get an exclusive right to distribute these OmniSeq tests to U.S.-based physicians through Integrated Oncology, a member of the LabCorp Specialty Testing Group, and globally to biopharmaceutical customers via its Covance Drug Development arm.
Also, the chief scientific officer of LabCorp Diagnostics, Marcia Eisenberg, will join OmniSeq’s board of directors. Plus, LabCorp has plans to participate in OmniSeq’s Series B financing round. This financing will be used to conduct OmniSeq’s ongoing retrospective and prospective clinical trials as well as to generate further evidence of the clinical utility of OmniSeq’s comprehensive genomic and immune profiling services.
Notably, Immune Report Card is a comprehensive immune profiling test, designed to inform oncologists regarding checkpoint inhibitor (CPI) treatment decisions. This combines results for all common biomarker assays relevant to checkpoint inhibitors as well as other informative analyses. Per OmniSeq, this assessment will provide a comprehensive immune profile to help in identifying 20-40% patients, who are likely to respond to CPI monotherapy.
On the other hand, OmniSeq Comprehensive assay is a 144-gene, pan-cancer, next-generation sequencing tumor profiling diagnostic panel. It helps oncologists to determine a particular line of treatment.
Considering the fact that both Immune Report Card and OmniSeq Comprehensive trials have received the New York State’s Clinical Laboratory Evaluation Program’s approval, we expect this alliance to help LabCorp broaden its customer base in cancer immunotherapy diagnostics space. Notably, this market is growing in leaps and bounds in recent times.
Per the data provided by Radiant Insights, Inc. as published in Cision PR Newswrites, global cancer immunotherapies market is expected to witness a CAGR of 23.9% by 2022. Hence, we believe LabCorp’s latest decision to widen its position in this market is perfectly strategic.
As part of its key tactical plans, LabCorp is consistently working hard on new innovations with academic institutions to capture the growing lab testing market with its advanced assays and tools.
During the second quarter of 2017, the company has opened a state-of-the-art companion diagnostics laboratory in North Carolina and delivered a double-digit increase in year-over-year revenues aided by continued growth in immuno-oncology services.
The company also won $100 million in companion diagnostic-related awards during the first half of the year. Its pipeline comprises a diverse range of oncology and non-oncology indications with new and established clients that might position it well for consistent growth in the future.
LabCorp’s latest partnership with OmniSeq as well as its decision to invest for latter’s research and development should add further momentum to the company’s growth trajectory.
Zacks Rank & Key Picks
LabCorp currently carries a Zacks Rank #3 (Hold). Some better-ranked medical stocks are Edwards Lifesciences Corp. (EW - Free Report) , Lantheus Holdings, Inc. (LNTH - Free Report) and Stryker Corporation (SYK - Free Report) . While Edwards Lifesciences sports a Zacks Rank #1 (Strong Buy), Lantheus Holdings and Stryker carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Edwards Lifesciences has a long-term expected earnings growth rate of 15.2%. The stock has climbed around 19.4% over the last six months.
Lantheus Holdings has a long-term expected earnings growth rate of 12.5%. The stock has surged 28.6% over the last six months.
Stryker Corporation has a long-term expected earnings growth rate of 10.00%. The stock has rallied roughly 12.8% over the last six months.
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LabCorp Partners OmniSeq to Grow in Immuno-Oncology Space
Leading healthcare diagnostics company Laboratory Corporation of America Holdings (LH - Free Report) or LabCorp recently inked a distribution agreement with Roswell Park Cancer Institute’s molecular diagnostics subsidiary, OmniSeq, Inc.
Per the deal terms, LabCorp will distribute OmniSeq’s Immune Report Card and OmniSeq Comprehensive clinical assays across the United States and outside.
The company will get an exclusive right to distribute these OmniSeq tests to U.S.-based physicians through Integrated Oncology, a member of the LabCorp Specialty Testing Group, and globally to biopharmaceutical customers via its Covance Drug Development arm.
Laboratory Corporation of America Holdings Price
Laboratory Corporation of America Holdings price | Laboratory Corporation of America Holdings Quote
Also, the chief scientific officer of LabCorp Diagnostics, Marcia Eisenberg, will join OmniSeq’s board of directors. Plus, LabCorp has plans to participate in OmniSeq’s Series B financing round. This financing will be used to conduct OmniSeq’s ongoing retrospective and prospective clinical trials as well as to generate further evidence of the clinical utility of OmniSeq’s comprehensive genomic and immune profiling services.
Notably, Immune Report Card is a comprehensive immune profiling test, designed to inform oncologists regarding checkpoint inhibitor (CPI) treatment decisions. This combines results for all common biomarker assays relevant to checkpoint inhibitors as well as other informative analyses. Per OmniSeq, this assessment will provide a comprehensive immune profile to help in identifying 20-40% patients, who are likely to respond to CPI monotherapy.
On the other hand, OmniSeq Comprehensive assay is a 144-gene, pan-cancer, next-generation sequencing tumor profiling diagnostic panel. It helps oncologists to determine a particular line of treatment.
Considering the fact that both Immune Report Card and OmniSeq Comprehensive trials have received the New York State’s Clinical Laboratory Evaluation Program’s approval, we expect this alliance to help LabCorp broaden its customer base in cancer immunotherapy diagnostics space. Notably, this market is growing in leaps and bounds in recent times.
Per the data provided by Radiant Insights, Inc. as published in Cision PR Newswrites, global cancer immunotherapies market is expected to witness a CAGR of 23.9% by 2022. Hence, we believe LabCorp’s latest decision to widen its position in this market is perfectly strategic.
As part of its key tactical plans, LabCorp is consistently working hard on new innovations with academic institutions to capture the growing lab testing market with its advanced assays and tools.
During the second quarter of 2017, the company has opened a state-of-the-art companion diagnostics laboratory in North Carolina and delivered a double-digit increase in year-over-year revenues aided by continued growth in immuno-oncology services.
The company also won $100 million in companion diagnostic-related awards during the first half of the year. Its pipeline comprises a diverse range of oncology and non-oncology indications with new and established clients that might position it well for consistent growth in the future.
LabCorp’s latest partnership with OmniSeq as well as its decision to invest for latter’s research and development should add further momentum to the company’s growth trajectory.
Zacks Rank & Key Picks
LabCorp currently carries a Zacks Rank #3 (Hold). Some better-ranked medical stocks are Edwards Lifesciences Corp. (EW - Free Report) , Lantheus Holdings, Inc. (LNTH - Free Report) and Stryker Corporation (SYK - Free Report) . While Edwards Lifesciences sports a Zacks Rank #1 (Strong Buy), Lantheus Holdings and Stryker carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Edwards Lifesciences has a long-term expected earnings growth rate of 15.2%. The stock has climbed around 19.4% over the last six months.
Lantheus Holdings has a long-term expected earnings growth rate of 12.5%. The stock has surged 28.6% over the last six months.
Stryker Corporation has a long-term expected earnings growth rate of 10.00%. The stock has rallied roughly 12.8% over the last six months.