Bio-Rad Laboratories, Inc. (BIO - Free Report) recently announced the receipt of FDA approval for its advanced multiplex test method BioPlex 2200 Lyme Total Assay for the diagnosis of Lyme disease.
Broadening the Clinical Diagnostics portfolio,the BioPlex 2200 Lyme Total Assay makes valuable information from laboratories available in the early stages of Lyme disease. This allows patients to receive treatment in time.
Per a MarketsandMarkets report, the global infectious disease diagnostics market is likely to reach a worth of $19.35 billion, at a CAGR of 5.6% from 2017 to 2022. Rising incidence of infectious diseases, growing research funds on the same and shift in focus to decentralized point-of-care testing are expected to drive demand.
Hence, we believe the recent development will help Bio-Rad boost top-line contributions from the Clinical Diagnostics business.
A Glimpse of the Clinical Diagnostics Arm
Bio-Rad’s Clinical Diagnostics business markets and distributes products to reference laboratories, hospital laboratories, state newborn screening facilities, physicians’ office laboratories, transfusion laboratories as well as insurance and forensic testing laboratories. It designs, manufactures, distributes and services automated test systems, informatics systems, test kits and specialized quality controls for the healthcare market. According to Bio-Rad, the Clinical Diagnostics segment presents an annual global market opportunity of roughly $12 billion.
The segment’s net sales were up 1.7% at constant currency in the last-reported quarter. The upside in the currency neutral sales indicates growth in immunology, infectious disease and quality-control product lines. Notably, the launch of the BioPlex 2200 Lyme Total assay is the newest addition in Bio-Rad's infectious disease menu for the automated multiplex technology platform — BioPlex 2200 System.
Share Price Movement
Over the past year, Bio-Rad has outperformed its industry. The stock has gained 23.4% versus the industry’s 13.7% rise.
Zacks Rank & Other Key Picks
Bio-Rad currently sports a Zacks Rank #1 (Strong Buy).
A few other top-ranked stocks in the broader medical space are Penumbra, Inc. (PEN - Free Report) , Amedisys, Inc. (AMED - Free Report) and Illumina, Inc. (ILMN - Free Report) .
Penumbra’s long-term earnings growth rate is expected at 20.9%. The stock carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Amedisys’ long-term earnings growth rate is projected at 19.8%. The stock carries a Zacks Rank #2.
Illumina’s long-term earnings growth rate is estimated at 21.5%. The stock also carries a Zacks Rank of 2.
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