Laboratory Corporation of America Holdings ( LH Quick Quote LH - Free Report) or LabCorp recently entered into a multi-faceted collaboration agreement to expand clinical trial access in New Jersey. The company joined forces with Circuit Clinical, a physicians and clinical research professionals network, and Riverside Medical Group (RMG), a NJ-based regional medical practice.
Financial terms of the deal have been kept under wraps.
Per the agreement, RMG's patients will be able to participate in clinical trials of new treatments and therapies within their own doctor's office. RMG has opened a dedicated research site jointly operated with Circuit Clinical. LabCorp, which is the primary reference laboratory for RMG, will help identify clinical trials for which RMG patients are eligible.
Precisely, all the three entities will jointly work for fast enrollment of patients in the trials being managed by LabCorp's Covance drug development business unit. Covance conducts clinical trials for biopharmaceutical and medical device companies. This in a way is expected to help accelerate the development of new medicines in multiple areas, including oncology and many other acute and chronic conditions.
Deal Benefits for LabCorp
The collaboration with RMG, which is a leading medical practice in New Jersey, with 96 locations that service more than 350,000 patients annually, is expected to broaden LabCorp’s existing client network to a significant extent. LabCorp’s Patient Direct offering will be used, which will help in bringing suitable clinical trials to eligible patients directly.
This business has been benefiting from collaborations on potential antivirals, treatments and vaccines with leading pharmaceutical and biotechnology companies. Of late, LabCorp is enhancing Covance's offerings through strategic acquisitions. The acquisition of MI Bioresearch is expected to create an opportunity for Covance to move from preclinical to clinical development. We are also optimistic about the company’s plans to acquire Regulatory and Clinical Research Institute (RCRI), a device-focused Contract Research Organization (CRO) with strong regulatory consulting expertise.
In terms of COVID-19 related support, among Covance’s collaborations, the alliance with Ridgeback Biotherapeutics to test an antiviral drug is significant. Further, the Covance business is also working with companies like Adaptive Biotechnologies and Microsoft to focus on immune response to the coronavirus. Separately, it is also working with Pacific Bioscience on unique research programs on virus characteristics that can support patient treatment decisions. Meanwhile, the company launched its patient registry which Ciox Health that will enable researchers to better understand and characterize COVID-19 diagnosis and treatment and generate the insights that will aid ongoing and future pandemic preparedness and prevention efforts.
Shares of the company have gained 13.2% in the past year compared with the
industry’s rise of 9.7%. Zacks Rank & Other Key Picks
Currently, LabCorp sports a Zacks Rank #1 (Strong Buy).
A few other top-ranked stocks from the broader medical space are
ResMed Inc. ( RMD Quick Quote RMD - Free Report) , Thermo Fisher Scientific Inc. ( TMO Quick Quote TMO - Free Report) and Align Technology, Inc. ( ALGN Quick Quote ALGN - Free Report) .
ResMed’s long-term earnings growth rate is estimated at 14.5%. The company presently carries a Zacks Rank #2 (Buy). You can see
the complete list of today’s Zacks #1 Rank stocks here.
Thermo Fisher’s long-term earnings growth rate is estimated at 18%. It currently carries a Zacks Rank #2.
Align Technology’s long-term earnings growth rate is estimated at 18.3%. It currently carries a Zacks Rank #2.
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