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.
QuidelOrtho's (QDEL) New Test to Offer Enhanced Opioid Testing
Read MoreHide Full Article
QuidelOrtho Corporation (QDEL - Free Report) recently announced the addition of the ARK Fentanyl II Assay to its U.S. Vitros XT 7600 and 5600 Integrated Systems as well as its Vitros 4600 Chemistry System menu of assays as a MicroTip Partnership Assay. The Fentanyl assay is expected to aid hospital and emergency room customers respond to the critical demand for enhanced opioid testing. This, in turn, will likely allow on-site fentanyl testing within a few minutes to enable immediate clinical decisions.
The latest addition is likely to significantly boost QuidelOrtho’s Labs business unit across the United States.
Significance of the Addition
Per the Centers for Disease Control and Prevention’s (“CDC”) estimates, the number of fatalities resulting from fentanyl overdoses has tripled from 2016 to 2021, with an ongoing upward trend. The CDC highlights California, Florida, New York, Pennsylvania and Ohio as states with the highest mortality rates attributed to fentanyl. Consequently, various states have responded by implementing regulations requiring fentanyl testing to be included as a required component of drugs-of-abuse test panels.
Drug test results obtained in emergency departments play a vital role in addressing unique hospital challenges. When patients test positive for opioids on a standard drug test, they are usually directed to drug treatment programs. However, these standard tests fail to identify synthetic opioids, such as fentanyl. Without specifically testing for fentanyl, instances of fentanyl exposure might be disregarded, thus potentially leading to missed opportunities for life-saving interventions, like administering an opioid overdose reversal medication (naloxone).
Per management, the assay is expected to transform laboratory efficiency by integrating fentanyl testing with existing protocols to eliminate the need for external screening tests. It will also likely consolidate a lab’s drugs-of-abuse panel into a singular, streamlined system, thereby reducing intervention time and helping to save lives.
Industry Prospects
Per a report by SkyQuest Technology, the global drug-of-abuse testing market was valued at $6.7 billion in 2022 and is anticipated to grow from $7.12 billion in 2023 to $11.61 billion by 2031 at a CAGR of 6.3%. Factors like increasing prevalence of substance abuse and stringent regulations for drug testing are likely to drive the market.
Given the market potential, the latest addition will likely provide a significant impetus to QuidelOrtho’s business.
Notable Development
In February, QuidelOrtho reported its fourth-quarter 2023 results, wherein it registered strong momentum in the Labs business. Per management, the company completed significant manufacturing upgrades to address instrument backlogs and meet market demand in its Labs business. The business unit recorded a solid uptick in revenues on both reported and constant currency basis.
Price Performance
Shares of the company have lost 52.1% in the past year against the industry’s 1.6% rise and the S&P 500’s 26.1% growth.
Image Source: Zacks Investment Research
Zacks Rank & Stocks to Consider
Currently, QuidelOrtho carries a Zacks Rank #5 (Strong Sell).
Some better-ranked stocks in the broader medical space are DaVita Inc. (DVA - Free Report) , Cardinal Health, Inc. (CAH - Free Report) and Ecolab Inc. (ECL - Free Report) .
DaVita, flaunting a Zacks Rank #1 (Strong Buy) at present, has an estimated long-term growth rate of 12.1%. DVA’s earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 35.6%. You can see the complete list of today’s Zacks #1 Rank stocks here.
DaVita’s shares have gained 55.7% compared with the industry’s 14.1% rise in the past year.
Cardinal Health, carrying a Zacks Rank of 2 (Buy) at present, has an estimated long-term growth rate of 14.2%. CAH’s earnings surpassed estimates in each of the trailing four quarters, with the average being 15.6%.
Cardinal Health has gained 31.8% compared with the industry’s 6.4% rise in the past year.
Ecolab, sporting a Zacks Rank of 1 at present, has an estimated long-term growth rate of 13.3%. ECL’s earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 1.7%.
Ecolab’s shares have rallied 32.4% against the industry’s 7.9% decline in the past year.
Unique Zacks Analysis of Your Chosen Ticker
Pick one free report - opportunity may be withdrawn at any time
Image: Bigstock
QuidelOrtho's (QDEL) New Test to Offer Enhanced Opioid Testing
QuidelOrtho Corporation (QDEL - Free Report) recently announced the addition of the ARK Fentanyl II Assay to its U.S. Vitros XT 7600 and 5600 Integrated Systems as well as its Vitros 4600 Chemistry System menu of assays as a MicroTip Partnership Assay. The Fentanyl assay is expected to aid hospital and emergency room customers respond to the critical demand for enhanced opioid testing. This, in turn, will likely allow on-site fentanyl testing within a few minutes to enable immediate clinical decisions.
The latest addition is likely to significantly boost QuidelOrtho’s Labs business unit across the United States.
Significance of the Addition
Per the Centers for Disease Control and Prevention’s (“CDC”) estimates, the number of fatalities resulting from fentanyl overdoses has tripled from 2016 to 2021, with an ongoing upward trend. The CDC highlights California, Florida, New York, Pennsylvania and Ohio as states with the highest mortality rates attributed to fentanyl. Consequently, various states have responded by implementing regulations requiring fentanyl testing to be included as a required component of drugs-of-abuse test panels.
Drug test results obtained in emergency departments play a vital role in addressing unique hospital challenges. When patients test positive for opioids on a standard drug test, they are usually directed to drug treatment programs. However, these standard tests fail to identify synthetic opioids, such as fentanyl. Without specifically testing for fentanyl, instances of fentanyl exposure might be disregarded, thus potentially leading to missed opportunities for life-saving interventions, like administering an opioid overdose reversal medication (naloxone).
Per management, the assay is expected to transform laboratory efficiency by integrating fentanyl testing with existing protocols to eliminate the need for external screening tests. It will also likely consolidate a lab’s drugs-of-abuse panel into a singular, streamlined system, thereby reducing intervention time and helping to save lives.
Industry Prospects
Per a report by SkyQuest Technology, the global drug-of-abuse testing market was valued at $6.7 billion in 2022 and is anticipated to grow from $7.12 billion in 2023 to $11.61 billion by 2031 at a CAGR of 6.3%. Factors like increasing prevalence of substance abuse and stringent regulations for drug testing are likely to drive the market.
Given the market potential, the latest addition will likely provide a significant impetus to QuidelOrtho’s business.
Notable Development
In February, QuidelOrtho reported its fourth-quarter 2023 results, wherein it registered strong momentum in the Labs business. Per management, the company completed significant manufacturing upgrades to address instrument backlogs and meet market demand in its Labs business. The business unit recorded a solid uptick in revenues on both reported and constant currency basis.
Price Performance
Shares of the company have lost 52.1% in the past year against the industry’s 1.6% rise and the S&P 500’s 26.1% growth.
Image Source: Zacks Investment Research
Zacks Rank & Stocks to Consider
Currently, QuidelOrtho carries a Zacks Rank #5 (Strong Sell).
Some better-ranked stocks in the broader medical space are DaVita Inc. (DVA - Free Report) , Cardinal Health, Inc. (CAH - Free Report) and Ecolab Inc. (ECL - Free Report) .
DaVita, flaunting a Zacks Rank #1 (Strong Buy) at present, has an estimated long-term growth rate of 12.1%. DVA’s earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 35.6%. You can see the complete list of today’s Zacks #1 Rank stocks here.
DaVita’s shares have gained 55.7% compared with the industry’s 14.1% rise in the past year.
Cardinal Health, carrying a Zacks Rank of 2 (Buy) at present, has an estimated long-term growth rate of 14.2%. CAH’s earnings surpassed estimates in each of the trailing four quarters, with the average being 15.6%.
Cardinal Health has gained 31.8% compared with the industry’s 6.4% rise in the past year.
Ecolab, sporting a Zacks Rank of 1 at present, has an estimated long-term growth rate of 13.3%. ECL’s earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 1.7%.
Ecolab’s shares have rallied 32.4% against the industry’s 7.9% decline in the past year.