We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
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.
Quest Diagnostics (DGX) Grows in Digital Pathology With New Deal
Read MoreHide Full Article
Quest Diagnostics (DGX - Free Report) recently announced a strategic collaboration with PathAI, a global leader in artificial intelligence-powered pathology technology, aimed at revolutionizing cancer and disease diagnosis. This partnership marks a significant step toward accelerated adoption of AI and digital pathology in Quest Diagnostics’ diagnostic services, promising enhanced quality, speed and efficiency in healthcare.
Transformative Acquisition of PathAI Diagnostics Assets
Under this definitive agreement, Quest Diagnostics will acquire select assets of PathAI Diagnostics (a business of PathAI that provides anatomic and digital pathology laboratory services), including its advanced digitized laboratory in Memphis, TN. This facility will serve as Quest Diagnostics’ AI and digital R&D center, supporting its specialized pathology businesses, AmeriPath and Dermpath Diagnostics.
The acquisition is set to be finalized in the second quarter of 2024. Financial terms of the deal have not been disclosed.
Advancing Digital Pathology Capabilities
Traditionally, a biopsied tissue is mounted on a glass slide for review under a microscope for abnormalities. However, when there is a need for multiple diagnoses, such as for a second opinion, the tissue biopsy must be physically couriered to another pathologist. Quest Diagnostics noted that digital pathology plays a crucial role in multiple testing of a biopsied tissue. Digital pathology enables the creation of digital images of glass slides that can be securely shared electronically with other pathologists.
The latest collaboration includes licensing PathAI's AISight digital pathology image management system to bolster Quest Diagnostics' pathology laboratories nationwide. This technology enables secure electronic sharing of digital slide images, streamlining collaboration among pathologists and reducing transportation needs. Additionally, Quest Diagnostics plans to leverage its deep pathology expertise to support PathAI's algorithm development for improved diagnostic accuracy.
Image Source: Zacks Investment Research
DGX's Cancer Care With AI
Quest Diagnostics’ commitment to maximizing patient impact is evident in its focus on AI-driven innovations for oncology care. By combining digital pathology with AI algorithms, pathologists can pinpoint areas of concern more effectively, leading to more accurate diagnoses. This approach will not only improve patient outcomes but also address workforce shortages and geographical disparities in pathology expertise.
So far, Quest Diagnostics has implemented AI, digital and automation technologies across several laboratory and business functions, including microbiology and cytogenetics to specimen processing and customer service. The company has piloted digital and AI pathology oncology solutions at Quest Diagnostics and AmeriPath sites in Clifton, NJ, Tampa, FL and Denver, CO.
The acquisition of PathAI Diagnostics aligns with Quest Diagnostics' long-term vision to extend digital pathology solutions to healthcare providers worldwide through its Global Diagnostic Network. This expansion will not only benefit provider customers but also advance the company’s presence in lucrative areas such as dermatopathology and gastrointestinal diseases.
Prospects of AI in Cancer Diagnosis
Per a Grand View Research report, AI in the cancer diagnostics market is poised for robust growth, with a projected CAGR of 26.3% from 2023 to 2030. Factors such as increased healthcare IT spending, a shortage of medical professionals and rising demand for early disease detection are driving this expansion. Government initiatives, startup collaborations and venture capital investments further fuel this sector. AI tools enhance imaging accuracy and speed, aiding oncology professionals in better cancer management. The pandemic has accelerated AI adoption, particularly in rapid diagnostics and personalized healthcare startups.
Share Price Performance
Year to date, shares of DGX have declined 1.6% against the industry’s 5.1% growth.
Zacks Rank and Key Picks
Quest Diagnostics carries a Zacks Rank #3 (Hold) currently.
Some better-ranked stocks in the broader medical space that have announced quarterly results are Align Technology, Inc. (ALGN - Free Report) , Ecolab (ECL - Free Report) and Boston Scientific Corporation (BSX - Free Report) .
Align Technology has a long-term estimated growth rate of 6.9%.
Ecolab, carrying a Zacks Rank of 2 at present, has an estimated long-term growth rate of 13.3%. Its earnings surpassed estimates in each of the trailing four quarters, delivering an average surprise of 1.7%.
Ecolab has a long-term expected growth rate of 13.5%.
Boston Scientific reported first-quarter 2024 adjusted EPS of 56 cents, which beat the Zacks Consensus Estimate by 9.8%. Revenues of $3.86 billion surpassed the Zacks Consensus Estimate by 4.9%. The company currently carries a Zacks Rank #2.
Boston Scientific has a long-term estimated growth rate of 12.5%.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Quest Diagnostics (DGX) Grows in Digital Pathology With New Deal
Quest Diagnostics (DGX - Free Report) recently announced a strategic collaboration with PathAI, a global leader in artificial intelligence-powered pathology technology, aimed at revolutionizing cancer and disease diagnosis. This partnership marks a significant step toward accelerated adoption of AI and digital pathology in Quest Diagnostics’ diagnostic services, promising enhanced quality, speed and efficiency in healthcare.
Transformative Acquisition of PathAI Diagnostics Assets
Under this definitive agreement, Quest Diagnostics will acquire select assets of PathAI Diagnostics (a business of PathAI that provides anatomic and digital pathology laboratory services), including its advanced digitized laboratory in Memphis, TN. This facility will serve as Quest Diagnostics’ AI and digital R&D center, supporting its specialized pathology businesses, AmeriPath and Dermpath Diagnostics.
The acquisition is set to be finalized in the second quarter of 2024. Financial terms of the deal have not been disclosed.
Advancing Digital Pathology Capabilities
Traditionally, a biopsied tissue is mounted on a glass slide for review under a microscope for abnormalities. However, when there is a need for multiple diagnoses, such as for a second opinion, the tissue biopsy must be physically couriered to another pathologist. Quest Diagnostics noted that digital pathology plays a crucial role in multiple testing of a biopsied tissue. Digital pathology enables the creation of digital images of glass slides that can be securely shared electronically with other pathologists.
The latest collaboration includes licensing PathAI's AISight digital pathology image management system to bolster Quest Diagnostics' pathology laboratories nationwide. This technology enables secure electronic sharing of digital slide images, streamlining collaboration among pathologists and reducing transportation needs. Additionally, Quest Diagnostics plans to leverage its deep pathology expertise to support PathAI's algorithm development for improved diagnostic accuracy.
Image Source: Zacks Investment Research
DGX's Cancer Care With AI
Quest Diagnostics’ commitment to maximizing patient impact is evident in its focus on AI-driven innovations for oncology care. By combining digital pathology with AI algorithms, pathologists can pinpoint areas of concern more effectively, leading to more accurate diagnoses. This approach will not only improve patient outcomes but also address workforce shortages and geographical disparities in pathology expertise.
So far, Quest Diagnostics has implemented AI, digital and automation technologies across several laboratory and business functions, including microbiology and cytogenetics to specimen processing and customer service. The company has piloted digital and AI pathology oncology solutions at Quest Diagnostics and AmeriPath sites in Clifton, NJ, Tampa, FL and Denver, CO.
The acquisition of PathAI Diagnostics aligns with Quest Diagnostics' long-term vision to extend digital pathology solutions to healthcare providers worldwide through its Global Diagnostic Network. This expansion will not only benefit provider customers but also advance the company’s presence in lucrative areas such as dermatopathology and gastrointestinal diseases.
Prospects of AI in Cancer Diagnosis
Per a Grand View Research report, AI in the cancer diagnostics market is poised for robust growth, with a projected CAGR of 26.3% from 2023 to 2030. Factors such as increased healthcare IT spending, a shortage of medical professionals and rising demand for early disease detection are driving this expansion. Government initiatives, startup collaborations and venture capital investments further fuel this sector. AI tools enhance imaging accuracy and speed, aiding oncology professionals in better cancer management. The pandemic has accelerated AI adoption, particularly in rapid diagnostics and personalized healthcare startups.
Share Price Performance
Year to date, shares of DGX have declined 1.6% against the industry’s 5.1% growth.
Zacks Rank and Key Picks
Quest Diagnostics carries a Zacks Rank #3 (Hold) currently.
Some better-ranked stocks in the broader medical space that have announced quarterly results are Align Technology, Inc. (ALGN - Free Report) , Ecolab (ECL - Free Report) and Boston Scientific Corporation (BSX - Free Report) .
Align Technology, carrying a Zacks Rank of 2 (Buy) at present, reported first-quarter 2024 adjusted earnings per share (EPS) of $2.14, which beat the Zacks Consensus Estimate by 8.1%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Align Technology has a long-term estimated growth rate of 6.9%.
Ecolab, carrying a Zacks Rank of 2 at present, has an estimated long-term growth rate of 13.3%. Its earnings surpassed estimates in each of the trailing four quarters, delivering an average surprise of 1.7%.
Ecolab has a long-term expected growth rate of 13.5%.
Boston Scientific reported first-quarter 2024 adjusted EPS of 56 cents, which beat the Zacks Consensus Estimate by 9.8%. Revenues of $3.86 billion surpassed the Zacks Consensus Estimate by 4.9%. The company currently carries a Zacks Rank #2.
Boston Scientific has a long-term estimated growth rate of 12.5%.