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LabCorp (LH) to Enhance Access to OmniSeq INSIGHT via New Program

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Laboratory Corporation of America Holdings or LabCorp (LH - Free Report) recently introduced a new-sponsored testing program to help advanced non-small cell lung cancer (NSCLC) patients and their physicians make informed treatment and care management decisions based on comprehensive genomic insights. The new lung cancer program is sponsored by Eli Lilly and Company (LLY - Free Report) . It underscores LabCorp’s efforts to ensure that more individuals have access to targeted and personalized treatments.

The program will leverage LabCorp’s OmniSeq INSIGHT test to offer comprehensive genomic and immune profiling for cases that match the eligibility criteria. The program aims to raise awareness and enable enhanced access to more thorough testing options for eligible NSCLC patients.

This novel initiative is likely to fortify LabCorp’s oncology business.

Few Words on OmniSeq INSIGHT

The OmniSeq INSIGHT is a pan-cancer, solid tumor test, which integrates two different treatment paradigms, i.e., genomic and immune profiling. The test improves the characterization of the unique genomic biomarkers within a patient’s tumor. This allows clinicians to make informed decisions regarding more effective personalized treatment approaches with fewer side effects and identify clinical trials for which patients may be eligible.

Benefits of New Lung Cancer Program

Comprehensive genomic profiling (CGP) enables physicians to test for all actionable biomarkers present in NSCLC patients compared with single-gene testing, which can detect one or a few biomarkers. With the OmniSeq INSIGHT testing, more lung cancer patients across the country will be able to receive therapies or be informed about clinical trials, which would not have been possible with a single gene test. Per LabCorp’s management, by providing data-driven insights to oncologists, health care systems and pharmaceutical developers, the company is bringing the promise of precision medicine within reach for all.

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Eli Lilly and Company’s management feels that the latest agreement with LabCorp to bring OmniSeq INSIGHT tests to more patients will demonstrate the importance of precision medicine.

Industry Prospects

Per a report published in MartketsandMarkets, the global cancer/tumor profiling market size is expected to see a CAGR of 10.9% by 2025. The rising incidence of cancer, increasing use of biomarkers in tumor profiling, technological advancements and growing demand for personalized medicine, among other factors, can be attributable to market growth.

Given the substantial market prospects, LabCorp’s new initiative to offer comprehensive genomic insights to NSCLC patients is opportune.

Notable Developments

LabCorp is engaged in several significant developments in May 2022.

The company announced the launch of a test that assesses Lymphocyte-activation gene 3 (LAG-3) expression levels by immunohistochemistry in tumor tissue, thereby expanding treatment options for skin cancer. The test is available for use in both clinical trials and the care and treatment of patients. It was developed by LabCorp Drug Development for use in a clinical trial that is studying dual checkpoint inhibitors, including LAG-3 immunotherapy.

The company also announced the launch of 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.” The Labcorp OnDemand Diabetes Risk test utilizes a dried blood technology to provide a snapshot of the body’s average blood sugar levels over time.

Share Price Performance

The stock has underperformed its industry in the past year. It has declined 6.6% compared with the industry’s 4.1% fall.

Zacks Rank and Key Picks

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

A few better-ranked stocks in the broader medical space are AMN Healthcare Services, Inc. (AMN - Free Report) and UnitedHealth Group Incorporated (UNH - Free Report) .

AMN Healthcare has a long-term earnings growth rate of 1.1%. The company surpassed earnings estimates in the trailing four quarters, delivering a surprise of 15.6%, on average. It currently flaunts a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

AMN Healthcare has outperformed its industry in the past year. AMN has gained 6.1% against the industry’s 63% fall.

UnitedHealth has an estimated long-term growth rate of 14.8%. UnitedHealth’s earnings surpassed estimates in the trailing four quarters, the average surprise being 3.7%. It currently carries a Zacks Rank #2 (Buy).

UnitedHealth has outperformed the industry in the past year. UNH has gained 21.4% compared with 19% industry growth in the said period.