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LabCorp's (LH) New Antigen Test to Spot Active COVID-19 Virus

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Laboratory Corporation of America Holdings (LH - Free Report) recently announced the addition of a new laboratory-based antigen test in its diagnostic testing portfolio that will help healthcare professionals to determine if an individual is actively infected with the COVID-19 virus. Notably, this new high-sensitivity antigen test developed by DiaSorin marks another instance of LabCorp’s dedication of providing people with the information they need to make important health decisions.

The DiaSorin LIAISON SARS-CoV-2 Ag antigen test is available in the United States following the FDA notification on October 26.

This latest antigen test is expected to expand LabCorp’s COVID-19 testing portfolio, thereby broadening its customer base.

Significance of Antigen Test

The new antigen test will be performed by healthcare providers using a nasal or nasopharyngeal swab to collect a sample, which is then picked up and processed by LabCorp. The test results will be returned within 24-48 hours from the time of pick up.

Per the Centers for Disease Control and Prevention, antigen tests can be used in a variety of testing strategies to counter the Covid-19 pandemic. This will help verify whether a person diagnosed with Covid-19 continues to carry the virus. Also, the antigen test by LabCorp will help someone know if they could still be carrying the virus or if they are safe to resume work and personal activities. 

COVID-19-led Developments    

LabCorp is working continuously toward its commitment to deliver support to healthcare professionals in countering COVID-19.

In December 2020, LabCorp announced receipt of the FDA’s Emergency Use Authorization for its Pixel by LabCorp for over-the-counter use. With this kit, customers will be able to self-collect their samples in the privacy of their own home in order to minimize transmission of the virus. The sample will be then send for processing at LabCorp from where the test results will be securely delivered via the Pixel by LabCorp portal.

In October, LabCorp announced a test that provides a quantitative measurement of an individual’s SARS-CoV-2 IgG antibodies. The test was developed to specifically detect and quantify antibodies to SARS-CoV-2, the virus that causes COVID-19. The results can help medical professionals to determine the effectiveness of vaccines and therapies.

Industry Prospects

Per Grand View Research, the global COVID-19 diagnostics market size was estimated at $84.4 billion in 2020 and is expected to reach $104.7 billion by 2027 at a CAGR of 3.1%. The uncontrolled COVID-19 infection across the globe and rising government initiatives targeted toward the implementation of mass testing are the key catalysts for the market.

Price Performance

Shares of the company have gained 31.3% in a year’s time compared with its industry’s growth of 19.2%.

Zacks Rank and Key Picks

Currently, LabCorp carries a Zacks Rank #3 (Hold).

A few better-ranked stocks from the broader medical space are DENTSPLY SIRONA Inc. (XRAY - Free Report) , Invacare Corporation and McKesson Corporation (MCK - Free Report) , each carrying a Zacks Rank #2 (Buy). You can see the complete list of Zacks #1 Rank (Strong Buy) stocks here.

DENTSPLY SIRONA has a projected long-term earnings growth rate of 54%.

Invacare has a projected long-term earnings growth rate of 57%.

McKesson has an estimated long-term earnings growth rate of 8%.

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