QIAGEN N.V. (QGEN - Free Report) recently announced a master service agreement with NeoGenomics, Inc. (NEO - Free Report) , an eminent provider of cancer-focused genetic testing services. The companies will enable confirmed Day-One patient access to FDA-approved molecular tests that are paired with newly approved drugs for cancer.
Per QIAGEN, the partnership will allow the company and its pharmaceutical partners to streamline the development and introduction of targeted drugs and companion diagnostics to guide treatment decisions.
According to a report by MarketsandMarkets, the global companion diagnostic market is estimated to reach a worth of $6.51 billion by 2022, at a CAGR of 20.1% between 2017 and 2022.
Going by the same report, the oncology segment is projected to be the highest contributor to the overall global companion diagnostics market growth by indication. Growing number of cancer cases globally along with increasing number of clinical trials focusing on cancer biomarkers for lung, breast, and prostate cancers are expected to continue accelerating growth in the oncology segment.
Considering the solid prospects of the market, we believe the latest development is a timely one and will boost the uptake of the test.
Strategic Collaborations to Drive Growth
QIAGEN’s long-term business strategy involves entering into strategic alliances as well as marketing and distribution arrangements with academic, corporate and other partners relating to the development, commercialization, marketing and distribution of certain existing and potential products.
We are currently upbeat about QIAGEN’s recent partnership with Hamilton and DiaSorin. With the DiaSorin partnership, the company is significantly raising its bar of automated TB testing. It is not only providing the current market leading screening test for latent TB but also the best-in-class automation solution. Meanwhile, the new pre-analytical workflow option with Hamilton will enhance growth significantly.
Share Price Performance
QIAGEN has been gaining investor confidence on consistently encouraging results. Over the past year, the company’s share price has outperformed its industry. The stock has gained 13.4% against the industry’s 13.6% fall.
Zacks Rank & Key Picks
QIAGEN currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader medical space are Integer Holdings Corporation (ITGR - Free Report) and Veeva Systems (VEEV - Free Report) .
Integer Holdings has an earnings growth rate of 31.2% for the next quarter and a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Veeva Systems’ long-term earnings growth rate is estimated at 19.3%. The stock carries a Zacks Rank #2.
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