Quest Diagnostics Incorporated (DGX - Free Report) through its subsidiary Summit Health has acquired the assets of Hooper Holmes, Inc. d/b/a Provant Health. Hooper Holmes is a prominent name in the field of comprehensive workplace well-being and clinical research support services.
The acquisition was initiated in August. The financial terms were not revealed. Following the close, Provant Health is expected to continue operations and provide its services to meet customer obligations for the fourth quarter 2018.
This acquisition is aligned with Quest Diagnostics’ ‘accelerate growth’ strategy. The company is hopeful that Provant Health with an expanded network of providers will boost its capability to identify and address problem behavior and provide necessary medical and preventative care.
Inorganic Deals Continue
We note that of late, Quest Diagnostics has been grabbing headlines on a slew of inorganic developments. Last week, the company purchasedPhenoPath, a national provider of specialized anatomic pathology (AP) and related services. The acquisition is expected to accelerate the company’s growth strategy for advanced diagnostics.
Earlier to that, the company announced its plans to acquire the U.S. laboratory services business of Oxford Immunotec Global PLC.Post-acquisition, Oxford Immunotec's T-SPOT.TB tuberculosis and the Accutix tick-borne disease tests will be added to Quest Diagnostics’ portfolio.
Last month, in a bid to expand in the field of fertility diagnostics, the company acquired ReproSource, a provider of specialty fertility diagnostic services.
Following this, in the same month, the company came up with a laboratory partnership with Regional Medical Center Health System (RMC), a regional health care provider for a five-county service area in northeast Alabama. RMC currently has 323 inpatient beds at RMC Anniston and 125 acute care beds at Stringfellow Memorial Hospital.
Per Quest Diagnostics, these advancements are aligned with the company’s accelerated growth strategy, particularly in advanced diagnostics. These deals also suit the company’s objective to deliver the broadest access to diagnostic innovation.
Share Price Performance
Shares of Quest Diagnostics have underperformed its industry over the past six months. The stock has gained 0.7% compared with the industry's 2% rise.
Zacks Rank & Key Picks
Quest Diagnostics currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader medical space are Intuitive Surgical (ISRG - Free Report) , Amedisys, Inc. (AMED - Free Report) and Masimo Corporation (MASI - Free Report) .
Intuitive Surgical’s long-term expected earnings growth rate is 14.7%. The stock currently carries a Zacks Rank of 2 (Buy).
Amedisys’ long-term expected earnings growth rate is 19.4%. The stock holds a Zacks Rank #2 at the moment. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Masimo’s long-term expected earnings growth rate is 14.8%. The stock has a Zacks Rank #2 at present.
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