Recently, DaVita Labs, the dialysis division of DaVita HealthCare Partners Inc. (DVA - Free Report) and Myriad RBM entered into a strategic liaison. Myriad RBM is a wholly owned subsidiary of a leading molecular diagnostic company, Myriad Genetics Inc. (MYGN - Free Report) .
The association of the two companies is aimed at performing a protein biomarker discovery research. The objective is to develop and introduce diagnostic tests into the market so that they can be of help in treating dialysis patients.
To aid the research on renal disease, the collaboration will use the proprietary biorepository of DaVita that collects, processes, stores and distributes biospecimens.
Myriad will process the bio-repository specimens of DaVita to measure over 300 important proteins through its Myriad RBM DiscoveryMAP platform. DiscoveryMAP analyses protein biomarkers associated with inflammatory, metabolic and renal diseases. This works as a helpful means for proper diagnosis of dialysis patients.
Myriad is expected to commence processing the specimens in fiscal year 2014.
Towards improving the quality of care for dialysis patients, Myriad conducts extensive research in kidney disease and inflammatory markers. On the other hand, DaVita is responsible for providing dialysis services to patients suffering from chronic kidney failure and end stage renal disease. The prospects of biorepositories, led Myriad to join hands with DaVita in order to improve its research and development efforts towards improving patient care.
Through the use of blood-based protein biomarkers, novel diagnostic tests are capable of enhancing the quality of life for patients as well as reduction of the overall healthcare costs. For this, the tests focus on predicting vascular access failure.
An improvement in the quality of care and waning healthcare costs is expected to lead to a surge in the number of patients served by both Myriad and DaVita. Thus we expect the collaboration to augment the financials for both the companies going forward. The long term sales growth for Myriad is projected at 10.24% whereas that of DaVita is 9.24%.
Myriad currently carries a Zacks Rank #2 (Buy). Among others in the industry, Anika Therapeutics Inc. (ANIK - Free Report) and Biogen Idec Inc. (BIIB - Free Report) carry a favorable Zacks Rank #1 (Strong Buy) and appear impressive.