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OPKO Health's (OPK) Arm Boosts Prenatal Screening With Buyout
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OPKO Health, Inc.’s (OPK - Free Report) subsidiary – BioReference Laboratories, Inc. – recently announced the buyout of the U.S. Ariosa centralized laboratory prenatal testing business from Roche Holding AG (RHHBY - Free Report) . It is important to note here that Ariosa’s non invasive prenatal screening (NIPS) test – the Harmony Prenatal Test – is one of the most studied tests used with respect to prenatal screening.
Interestingly, BioReference’s specialty health division – GenPath – currently provides ClariTest Core that uses the same central technology as the Harmony Prenatal Test. The buyout will aid in complementing this current NIPS offering.
BioReference is one of the largest full service specialty laboratories in the United States, which helps healthcare providers and patients to arrive at confident healthcare decisions.
This buyout is likely to provide a boost to the company's BioReference platform.
More on the Acquisition
Per management, women’s health has held an important position in BioReference’s 40 year legacy of diagnostic testing. In fact, last year there were around six million pregnancies in the United States and prenatal screening for Down syndrome has become common practice.
Image Source: Zacks Investment Research
The buyout will help in expansion of BioReference’s NIPS offerings and reinforce its commitment to prenatal screening, thereby enabling it and GenPath to accelerate high quality and accessible testing that can have favorable impacts on the medical care and outcomes of patients and their families.
Market Prospects
Per a report by Grand View Research, the global non invasive prenatal testing market was worth $2.83 billion in 2020 and is projected to witness a CAGR of 10.9% from 2021 to 2028. Rising incidence of chromosomal abnormalities together with growing product usage in new applications is boosting the organic revenue growth in the market.
Hence, the buyout is well-timed for BioReference.
Recent Developments
During the second quarter of 2021, BioReference processed approximately 2.8 million COVID-19 polymerase chain reaction (PCR) tests. Currently, the BRL has a capacity to process over 100,000 PCR tests a day. Additionally, during the quarter, BioReference performed approximately 132,000 COVID-19 serology tests to measure SARS-CoV-2 antibody levels and currently has significant additional capacity. These developments have pushed up the BioReference test volume by 32% year over year.
In June, BioReference introduced a COVID-19 testing program for U.S. based crew and guests, who cruise with Royal Caribbean Group. This will aid in ensuring a safe environment for travelers.
Price Performance
Shares of this Zacks Rank #4 (Sell) company have lost 27.3% in a year’s time against the industry’s growth of 11.7%.
Image: Bigstock
OPKO Health's (OPK) Arm Boosts Prenatal Screening With Buyout
OPKO Health, Inc.’s (OPK - Free Report) subsidiary – BioReference Laboratories, Inc. – recently announced the buyout of the U.S. Ariosa centralized laboratory prenatal testing business from Roche Holding AG (RHHBY - Free Report) . It is important to note here that Ariosa’s non invasive prenatal screening (NIPS) test – the Harmony Prenatal Test – is one of the most studied tests used with respect to prenatal screening.
Interestingly, BioReference’s specialty health division – GenPath – currently provides ClariTest Core that uses the same central technology as the Harmony Prenatal Test. The buyout will aid in complementing this current NIPS offering.
BioReference is one of the largest full service specialty laboratories in the United States, which helps healthcare providers and patients to arrive at confident healthcare decisions.
This buyout is likely to provide a boost to the company's BioReference platform.
More on the Acquisition
Per management, women’s health has held an important position in BioReference’s 40 year legacy of diagnostic testing. In fact, last year there were around six million pregnancies in the United States and prenatal screening for Down syndrome has become common practice.
Image Source: Zacks Investment Research
The buyout will help in expansion of BioReference’s NIPS offerings and reinforce its commitment to prenatal screening, thereby enabling it and GenPath to accelerate high quality and accessible testing that can have favorable impacts on the medical care and outcomes of patients and their families.
Market Prospects
Per a report by Grand View Research, the global non invasive prenatal testing market was worth $2.83 billion in 2020 and is projected to witness a CAGR of 10.9% from 2021 to 2028. Rising incidence of chromosomal abnormalities together with growing product usage in new applications is boosting the organic revenue growth in the market.
Hence, the buyout is well-timed for BioReference.
Recent Developments
During the second quarter of 2021, BioReference processed approximately 2.8 million COVID-19 polymerase chain reaction (PCR) tests. Currently, the BRL has a capacity to process over 100,000 PCR tests a day. Additionally, during the quarter, BioReference performed approximately 132,000 COVID-19 serology tests to measure SARS-CoV-2 antibody levels and currently has significant additional capacity. These developments have pushed up the BioReference test volume by 32% year over year.
In June, BioReference introduced a COVID-19 testing program for U.S. based crew and guests, who cruise with Royal Caribbean Group. This will aid in ensuring a safe environment for travelers.
Price Performance
Shares of this Zacks Rank #4 (Sell) company have lost 27.3% in a year’s time against the industry’s growth of 11.7%.
Stocks to Consider
Two better-ranked stocks from the broader medical space are Henry Schein, Inc. (HSIC - Free Report) , and Envista Holdings Corporation (NVST - Free Report) , both currently carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Henry Schein’s long-term earnings growth rate is estimated at 13.9%.
Envista Holdings’ long-term earnings growth rate is estimated at 27.4%.