Leading diagnostics testing company, Laboratory Corporation of America Holdings’(LH - Free Report) agreement with Interpace Diagnostics Group, Inc. (IDXG) has been renewed and extended. Per the extended deal, the agreement will be deemed valid till January 2019, after the successful initial phase.
As per the press release, Interpace Diagnostics is a fully integrated commercial company that provides clinically useful molecular diagnostic tests and pathology services to evaluate the risk of cancer by leveraging the latest technology in personalized medicine for better patient diagnosis and management. LabCorp had originally entered into an agreement in January 2016 to offer Interpace Diagnostics’ molecular tests — ThyGenX and ThyraMIR.
ThyGenX and ThyraMIR reflex testing yields high predictive value in determining the presence and absence of cancer in thyroid nodules. In simpler words, the tests provide the latest technology for the diagnosis of thyroid cancer in indeterminate thyroid nodules patients.
According to a report by Market Data Forecast, the Thyroid Cancer Market is estimated to reach a worth of $544.24 million by 2021, at a CAGR of 25.45%. Considering the bountiful opportunities in this niche space, we believe this is a strategic move by the company.
Of late, LabCorp has been taking strategic initiative to specialize tests. It recently started offering a new proprietary ADAMTS13 test to distinguish diseases characterized by life-threatening, acute thrombotic microangiopathy (TMA). Notably, TMA is relatively rare but serious syndrome. In TMA, small blood vessels develop blood clots, which result in the mechanical destruction of red blood cells.
The company also announced the availability of the PreTRM test in the United States. The PreTRM test is developed by Sera Prognostics, Inc.It is the only validated blood test that offers an early and individualized prediction of preterm birth risk in pregnant women.
Further, LabCorp announced a significant enhancement to its proprietary VistaSeq Hereditary Cancer portfolio, with ten new test panels focusing on the risk of specific hereditary cancer syndromes.
In majority of the last three months, LabCorp has been trading above the broader industry. Over this period, the stock has gained 10.6% as against the industry’s decline of 1.2%.
Zacks Rank & Key Picks
LabCorp carries a Zacks Rank #3 (Hold). A few better-ranked medical stocks are IDEXX Laboratories, Inc. (IDXX - Free Report) and Lantheus Holdings, Inc. (LNTH - Free Report) and Edwards Lifesciences Corporation (EW - Free Report) . Edwards Lifesciences sports a Zacks Rank #1 (Strong Buy), while Lantheus Holdings and IDEXX Laboratories carry a Zacks Rank #2 (Buy). You cansee the complete list of today’s Zacks #1 Rank stocks here.
Edwards Lifesciences has a long-term expected earnings growth rate of 15.2%. The stock has rallied roughly 20.4% over the last six months.
Lantheus Holdings has a long-term expected earnings growth rate of 12.5%. The stock has gained 26.9% over the last six months.
IDEXX Laboratories has a long-term expected earnings growth rate of 19.8%. The stock has gained around 2.3% over the last six months.
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