Laboratory Corporation of America Holdings ( LH Quick Quote LH - Free Report) or LabCorp announced the launch of a test that assesses Lymphocyte-activation gene 3 (LAG-3) expression levels by immunohistochemistry (IHC) in tumor tissue, thereby expanding treatment options for skin cancer. The test is available for use in both clinical trials, as well as the care and treatment of patients.
Notably, the LAG-3 IHC assay is claimed to have shown a demonstrable clinical advantage in patients suffering from melanoma.
The recent development is likely to fortify LabCorp’s Oncology business.
More on LAG-3 IHC Assay
The assay was developed by LabCorp Drug Development for use in a clinical trial that is studying dual checkpoint inhibitors, including LAG-3 immunotherapy. Per the Journal of Clinical Pathology, the evaluation of LAG-3 status in tumors, and the correlation between expression level and response to LAG-3 immunotherapy can be provided by the assay.
The LAG-3 IHC assay is being used in other ongoing clinical studies, analyzing the clinical response to LAG-3 targeted cancer treatments.
Significance of the LAG-3 IHC Assay
Per management, LabCorp aims to offer diagnostic solutions that can help steer the clinical application of new cancer treatments, thereby improving the lives of cancer patients. The LAG-3 IHC assay offers physicians actionable information to assess the best treatment options for their patients, which includes newly approved treatments and clinical trials.
Image Source: Zacks Investment Research
The development of the LAG-3 IHC assay, along with its availability for clinical purposes, highlights LabCorp’s unique leading capabilities in diagnostic testing and wide-ranging drug development services. By providing targeted biomarker solutions to make better decisions by clinicians, LabCorp is helping boost patient outcomes.
Industry Prospects Per a report by Research and Markets, the global skin cancer diagnostics & therapeutics market size was $6.84 billion in 2022 and is projected to reach $1.18 billion by 2027, witnessing a CAGR of 10.28%. The rising prevalence and incidences of skin cancer, supported by the growing awareness among people and increased product launches, are driving the market.
Given the market opportunities, LabCorp’s recent launch for the treatment of skin cancer is well-timed.
In May 2022, LabCorp launched an at-home collection kit for diabetes screening, which measures hemoglobin A1c (HbA1c) from a small blood sample. With the introduction of the kit, consumers can access the diabetes risk test kit, and other health and wellness tests through “Labcorp OnDemand.”
In April 2022, LabCorp introduced “Getlabs for Labcorp” — an advanced health care service that combines LabCorp’s diagnostic tests with Getlabs phlebotomy service to conveniently test consumers in the comfort of their own homes. With the service, individuals can now book a home blood draw or specimen collection as and when required.
Shares of the company have lost 8.4% in a year compared with the
industry's fall of 7.6%. Zacks Rank and Key Picks
LabCorp currently carries a Zacks Rank #3 (Hold).
A few better-ranked stocks in the broader medical space are
UnitedHealth Group Incorporated ( UNH Quick Quote UNH - Free Report) , Medpace Holdings, Inc. ( MEDP Quick Quote MEDP - Free Report) and Alkermes plc ( ALKS Quick Quote ALKS - Free Report) .
UnitedHealth, with a Zacks Rank #2 (Buy), reported first-quarter 2022 earnings per share (EPS) of $5.49, which beat the Zacks Consensus Estimate by 1.7%. Revenues of $80.1 billion outpaced the consensus mark by 14.2%.
You can see
the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
UnitedHealth has an estimated long-term growth rate of 14.8%. UNH’s earnings surpassed estimates in the trailing four quarters, the average surprise being 3.7%.
Medpace reported first-quarter 2022 adjusted EPS of $1.69, which surpassed the Zacks Consensus Estimate by 34.1%. Revenues of $330.9 million outpaced the Zacks Consensus Estimate by 1.1%. It currently has a Zacks Rank #2.
Medpace has a historical growth rate of 27.3%. MEDP’s earnings surpassed estimates in the trailing four quarters, the average surprise being 17.1%.
Alkermes reported first-quarter 2022 adjusted EPS of 12 cents, which surpassed the Zacks Consensus Estimate of a penny. Revenues of $278.6 million outpaced the Zacks Consensus Estimate by 6.2%. It currently sports a Zacks Rank #1.
Alkermes has an estimated long-term growth rate of 25.1%. ALKS’ earnings surpassed estimates in the trailing four quarters, the average surprise being 350.5%.