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Cardinal Health's (CAH) Arm Receives FDA Nod for LYMPHOSEEK

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Cardinal Health, Inc. (CAH - Free Report) recently announced that LYMPHOSEEK (technetium Tc 99m tilmanocept) injection has received approval for pediatric use by the FDA. This new indication will enable physicians, oncologists and nuclear medicine specialists to stage the spread of disease through lymphatic mapping in pediatric cancer patients more accurately.

Notably, the injection is the first and only radiopharmaceutical agent that has been specifically created for targeted lymphatic mapping and guiding sentinel lymph node biopsies (SLNB). It is worth mentioning that a clinical study to assess LYMPHOSEEK in pediatric patients has exhibited that the radiopharmaceutical is safe and effective for patients one month and older.

The approval is likely to bolster the company’s overall Pharmaceutical segment.

Significance of the Approval

Notably, rhabdomyosarcoma (RMS) is often detected in children and teens, with above half of diagnoses in children younger than 10 years of age. Every year in the United States around the same number of pediatric cases of RMS, which is a rare type of cancer forming in soft tissues, like eyes, can be seen.

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Apart from adult use, the new approval will aid in offering accurate and precise lymph node detection in pediatric patients with melanoma, RMS or other types of solid tumors.

Per management, the latest approval will allow more families to get answers to some their most concerning questions.

Market Prospects

Per a report by Research and Markets, the Global Radiopharmaceuticals market is projected to reach $6.6 billion in 2021 and is anticipated to be worth $8.2 billion by 2026, witnessing a CAGR of 4.5%. Hence, the approval comes at an opportune time for Cardinal Health.

Recent Developments

In April, Cardinal Health was awarded a $57.8-million contract to offer critical pandemic support throughout the United States in collaboration with the U.S. government. This, in turn, will help healthcare providers and first responders receive the much-needed critical products as quickly, efficiently and safely as possible to act on the ongoing COVID-19 emergencies with immediacy.

In the same month, the company’s Specialty Solutions introduced Cardinal Health Navista Tech Solutions (TS), which is an advanced suite of technology solutions. The latest launch will enable community oncologists to boost patient outcomes and lower costs with respect to their treatment while they shift to value-based care.

Price Performance

Shares of this Zacks Rank #3 (Hold) company have gained 12% on a year-to-date basis, compared with the industry’s growth of 7.2%.

Stocks to Consider

Some better-ranked stocks from the broader medical space are HCA Healthcare, Inc. (HCA - Free Report) , DaVita Inc. (DVA - Free Report) and Encompass Health Corporation (EHC - Free Report) , each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

HCA Healthcare’s long-term earnings growth rate is expected at 12.3%.

DaVita’s long-term earnings growth rate is estimated at 14.4%.

Encompass Health’s long-term earnings growth rate is projected at 17.3%.

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