We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Quest Diagnostics (DGX) Buys Outreach Lab, Widens Midwest Base
Read MoreHide Full Article
Quest Diagnostics (DGX - Free Report) recently acquired the outreach laboratory services business of Mercy, one of the nation’s leading integrated, multi-state health care systems. The acquisition was based on an all-cash asset transaction. However, additional financial terms of the deal were kept under wraps.
The acquisition, which was initiated in March, is aimed at delivering quality and cost-effective laboratory services throughout the Midwest.
More About the Acquisition
Prior to the completion of the acquisition, the Mercy outreach lab services business used to operate from 29 hospital laboratories and two independent clinic laboratories in Arkansas, Kansas, Missouri and Oklahoma.
With the completion of the deal, Mercy's outreach laboratory services will get integrated into Quest Diagnostics’ full-service laboratory in Lenexa, KS and the company's network of rapid response laboratories across the Midwest. Mercy will continue to wholly own and operate its hospital laboratories for tests connected to inpatient and hospital-based outpatient care needs.
Strategic Significance
This addition will broaden Quest Diagnostics’ laboratory service network in Arkansas, Kansas, Missouri and Oklahoma. Physicians and patients in these regions will benefit from access to Quest Diagnostics’ advanced test menu, extensive health plan coverages, network of about 1,000 conveniently located patient-access sites and competitive pricing.
Image Source: Zacks Investment Research
According to the company, while gradually the pandemic pressure is easing out through the United States, customer expectations and reimbursement pressure are rising. In such a situation, this latest deal is expected to support and enhance the effectiveness of Quest Diagnostics’ lab strategies.
Market Prospect
Going by a Grand View Research report, the global clinical laboratory service market size was valued at $200.3 billion in 2020 and is projected to expand at a CAGR of 4.7% from 2021 to 2028. Increasing burden of chronic diseases and growing demand for early diagnostic tests are expected to be high impact drivers of market growth.
Considering such enormous growth prospects, we believe the latest acquisition by Quest Diagnostics to be well timed.
Recent Notable Developments
In May, Quest Diagnostics collaborated with Paige to advance AI-generated pathology insights to improve cancer diagnosis and care. The collaboration will initially focus on solid tumor cancers, such as prostate, breast, colorectal and lung.
The same month, the company partnered with Ginkgo Bioworks to provide COVID-19 testing to Kindergarten through Senior (K-12) school to support classroom learning nationwide.
In April, the company announced the divestment of its ownership interest in Q2 Solutions to IQVIA – a global provider of advanced analytics, technology solutions, and clinical research services to the life sciences industry. Quest Diagnostics will remain the preferred laboratory provider for Q2 Solutions' clients, providing a range of complementary lab testing capabilities under a multi-year agreement. Per the company, the divestment will enable Quest Diagnostics to focus on its core and profitable diagnostics information services arm.
In March, Quest Diagnostics renewed its long-standing relationship with BlueCross BlueShield of Western New York and BlueShield of Northeastern New York to provide comprehensive clinical laboratory services to the members of BlueCross BlueShield of Western New York and BlueShield of Northeastern New York.
Share Price Performance
Shares of the company have improved 6.5% in a year’s time compared with the industry’s 5.1% rise.
Zacks Rank and Key Picks
Currently, the company carries a Zacks Rank #3 (Hold).
Asensus Surgical has a projected long-term earnings growth rate of 71%.
The Cooper Companies has a projected long-term earnings growth rate of 11%.
Envista Holdings has an estimated long-term earnings growth rate of 26%.
Zacks Names “Single Best Pick to Double”
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
You know this company from its past glory days, but few would expect that it’s poised for a monster turnaround. Fresh from a successful repositioning and flush with A-list celeb endorsements, it could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in a little more than 9 months and Nvidia which boomed +175.9% in one year.
Image: Bigstock
Quest Diagnostics (DGX) Buys Outreach Lab, Widens Midwest Base
Quest Diagnostics (DGX - Free Report) recently acquired the outreach laboratory services business of Mercy, one of the nation’s leading integrated, multi-state health care systems. The acquisition was based on an all-cash asset transaction. However, additional financial terms of the deal were kept under wraps.
The acquisition, which was initiated in March, is aimed at delivering quality and cost-effective laboratory services throughout the Midwest.
More About the Acquisition
Prior to the completion of the acquisition, the Mercy outreach lab services business used to operate from 29 hospital laboratories and two independent clinic laboratories in Arkansas, Kansas, Missouri and Oklahoma.
With the completion of the deal, Mercy's outreach laboratory services will get integrated into Quest Diagnostics’ full-service laboratory in Lenexa, KS and the company's network of rapid response laboratories across the Midwest. Mercy will continue to wholly own and operate its hospital laboratories for tests connected to inpatient and hospital-based outpatient care needs.
Strategic Significance
This addition will broaden Quest Diagnostics’ laboratory service network in Arkansas, Kansas, Missouri and Oklahoma. Physicians and patients in these regions will benefit from access to Quest Diagnostics’ advanced test menu, extensive health plan coverages, network of about 1,000 conveniently located patient-access sites and competitive pricing.
According to the company, while gradually the pandemic pressure is easing out through the United States, customer expectations and reimbursement pressure are rising. In such a situation, this latest deal is expected to support and enhance the effectiveness of Quest Diagnostics’ lab strategies.
Market Prospect
Going by a Grand View Research report, the global clinical laboratory service market size was valued at $200.3 billion in 2020 and is projected to expand at a CAGR of 4.7% from 2021 to 2028. Increasing burden of chronic diseases and growing demand for early diagnostic tests are expected to be high impact drivers of market growth.
Considering such enormous growth prospects, we believe the latest acquisition by Quest Diagnostics to be well timed.
Recent Notable Developments
In May, Quest Diagnostics collaborated with Paige to advance AI-generated pathology insights to improve cancer diagnosis and care. The collaboration will initially focus on solid tumor cancers, such as prostate, breast, colorectal and lung.
The same month, the company partnered with Ginkgo Bioworks to provide COVID-19 testing to Kindergarten through Senior (K-12) school to support classroom learning nationwide.
In April, the company announced the divestment of its ownership interest in Q2 Solutions to IQVIA – a global provider of advanced analytics, technology solutions, and clinical research services to the life sciences industry. Quest Diagnostics will remain the preferred laboratory provider for Q2 Solutions' clients, providing a range of complementary lab testing capabilities under a multi-year agreement. Per the company, the divestment will enable Quest Diagnostics to focus on its core and profitable diagnostics information services arm.
In March, Quest Diagnostics renewed its long-standing relationship with BlueCross BlueShield of Western New York and BlueShield of Northeastern New York to provide comprehensive clinical laboratory services to the members of BlueCross BlueShield of Western New York and BlueShield of Northeastern New York.
Share Price Performance
Shares of the company have improved 6.5% in a year’s time compared with the industry’s 5.1% rise.
Zacks Rank and Key Picks
Currently, the company carries a Zacks Rank #3 (Hold).
A few better-ranked stocks from the broader medical space are Asensus Surgical, Inc. (ASXC - Free Report) , The Cooper Companies, Inc. (COO - Free Report) and Envista Holdings Corporation (NVST - Free Report) , each carrying a Zacks Rank #2 (Buy). You can see the complete list of Zacks #1 Rank (Strong Buy) stocks here.
Asensus Surgical has a projected long-term earnings growth rate of 71%.
The Cooper Companies has a projected long-term earnings growth rate of 11%.
Envista Holdings has an estimated long-term earnings growth rate of 26%.
Zacks Names “Single Best Pick to Double”
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
You know this company from its past glory days, but few would expect that it’s poised for a monster turnaround. Fresh from a successful repositioning and flush with A-list celeb endorsements, it could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in a little more than 9 months and Nvidia which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>