Luminex Corporation (LMNX - Free Report) recently entered an agreement with EDP Biotech Corporation, wherein EDP will have the rights to develop, market and sell its blood-based colorectal cancer diagnostic assay, ColoPlex, using Luminex's xMAP technology. The latest move fortifies Luminex’s foothold in the cancer diagnostics space.
For investors’ notice, EDP Biotech is a privately-held in vitro diagnostics company, which focuses on the development and commercialization of simple and cost-effective diagnostics that detect diseases early in humans and animals.
Luminex’s xMAP Technology combines advanced fluidics, optics, and digital signal processing with proprietary microsphere technology to deliver multiplexed assay capabilities. xMAP Technology can be configured to perform a wide variety of protein or nucleic acid assays quickly, cost-effectively, and accurately.
The company’s xMAP revenues are included in the core Systems revenues which nearly doubled in the last reported quarter. Notably, management expects to see robust demand for Luminex’s xMAP technology in 2019. In recent times, the company announced plans to introduce a next-generation xMAP platform. Management plans to commercialize the platform in the second half of 2019.
It is encouraging to note that Luminex’s solid product portfolio consists of other flagship products like xTAG and Multi Code technology.
Per management at Luminex, colorectal cancer is the second most pervasive terminal cancer in the world. World Cancer Research Fund suggests that there were 1.8 million new colorectal cancer cases in 2018.
Grand View Research opines that the global cancer diagnostics market is expected to see a CAGR of 7% from 2019 to 2026. Growing prevalence of oncologic cases and increasing demand for effective screening tests drive market growth.
We believe that positive developments such as these are likely to boost the Zacks Rank #3 (Hold) stock, which has declined 27.2% compared with the industry’s 5.9% fall in a year’s time.
Stocks that Warrant a Look
Some better-ranked stocks in the broader medical space are Cerner Corporation (CERN - Free Report) , Penumbra (PEN - Free Report) and Bruker Corporation (BRKR - Free Report) . While Cerner sports a Zacks Rank #1 (Strong Buy), the other two stocks carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Cerner’s long-term earnings growth rate is expected to be 13.5%.
Penumbra’s long-term earnings growth rate is projected at 21.5%.
Bruker’s long-term earnings growth rate is estimated at 11.7%.
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