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Abbott Launches Antibody Test to Detect Coronavirus Infection
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Abbott Laboratories (ABT - Free Report) recently announced the launch of a lab-based serology blood test to detect the presence of the antibody IgG that tells if a person has had the coronavirus. Initially, this test will be available on Abbott’s ARCHITECT i1000SR and i2000SR laboratory instruments. This is also the company’s third test for coronavirus after the m2000 molecular laboratory system and ID NOW molecular point-of-care device.
Post the news release on Apr 15, the company’s share price increased 5.6% to close at $96.01 on Apr 17.
For investor’s note, Abbott is providing access to the test as part of the FDA’s notification without an Emergency Use Authorization (“EUA”) pathway outlined in Policy for Diagnostic Tests for Coronavirus Disease-2019 during the Public Health Emergency. Further, Abbott plans to file an EUA with the FDA and CE Mark in the European Union.
The latest launch will strengthen Abbott’s Diagnostic Product business.
Significance of the Launch
Antibody tests are a way to determine if someone was previously infected with the coronavirus, unlike molecular testing which detects whether someone has the virus. Thus, antibody tests provide more in-depth knowledge about the virus, including the duration of the antibody’s presence in the body and whether it provides immunity or not. This knowledge, in turn, will be beneficial for the development of treatments and vaccines.
Notably, Abbott is in the process of ramping up its manufacturing capacities for antibody testing and is likely to immediately ship around 1 million tests this week to U.S. customers. Further, it will ship a total of 4 million tests in April. The company is on track to ramp up its capacity to 20 million tests in the United States in June and beyond as it expands the tests to run on its new Alinity i system.
Industry Prospects
Per a report by Grand View Research, the global molecular diagnostics market size was valued at $9.2 billion in 2019 and is expected to reach $18.2 billion by 2027, at a CAGR of 9%. Factors like progress in molecular diagnostics and the growing prevalence of infectious diseases are likely to drive the market.
Other Coronavirus-Related Progress
Of late, Abbott has been making a series of developments with respect to combatting the coronavirus pandemic.
In March, the company received the FDA’s EUA for its molecular point-of-care test, ID NOW COVID-19, for the detection of the virus. Running on Abbott’s ID NOW platform, it is the fastest molecular point-of-care test available at the moment.
The company received an EUA in March for its RealTime SARS-CoV-2 test used on the m2000 RealTime System. Currently, Abbott is on track to ship 150,000 tests to customers in the United States. Notably, the company is scaling up its production at its U.S. manufacturing location to reach the capacity of 1 million tests per week by the end of March.
Abbott believes that the two EUA tests, combined, can produce 5 million tests per month.
Price Performance
Shares of the company have gained 28.9% in the past year compared with the industry’s 5.3% rise and the S&P 500’s 1.7% fall.
Zacks Rank & Key Picks
Currently, Abbott carries a Zacks Rank #3 (Hold).
Some better-ranked stocks from the broader medical space are ResMed Inc. (RMD - Free Report) , National Vision Holdings, Inc. (EYE - Free Report) and Phibro Animal Health Corporation (PAHC - Free Report) .
National Vision’s long-term earnings growth rate is estimated at 10.7%. The company presently has a Zacks Rank #2.
Phibro’s long-term earnings growth rate is estimated at 2.1%. It currently carries a Zacks Rank #2.
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Zacks has just released Century of Biology: 7 Biotech Stocks to Buy Right Now to help investors profit from 7 stocks poised for outperformance. Our recent biotech recommendations have produced gains of +50%, +83% and +164% in as little as 2 months. The stocks in this report could perform even better.
Image: Bigstock
Abbott Launches Antibody Test to Detect Coronavirus Infection
Abbott Laboratories (ABT - Free Report) recently announced the launch of a lab-based serology blood test to detect the presence of the antibody IgG that tells if a person has had the coronavirus. Initially, this test will be available on Abbott’s ARCHITECT i1000SR and i2000SR laboratory instruments. This is also the company’s third test for coronavirus after the m2000 molecular laboratory system and ID NOW molecular point-of-care device.
Post the news release on Apr 15, the company’s share price increased 5.6% to close at $96.01 on Apr 17.
For investor’s note, Abbott is providing access to the test as part of the FDA’s notification without an Emergency Use Authorization (“EUA”) pathway outlined in Policy for Diagnostic Tests for Coronavirus Disease-2019 during the Public Health Emergency. Further, Abbott plans to file an EUA with the FDA and CE Mark in the European Union.
The latest launch will strengthen Abbott’s Diagnostic Product business.
Significance of the Launch
Antibody tests are a way to determine if someone was previously infected with the coronavirus, unlike molecular testing which detects whether someone has the virus. Thus, antibody tests provide more in-depth knowledge about the virus, including the duration of the antibody’s presence in the body and whether it provides immunity or not. This knowledge, in turn, will be beneficial for the development of treatments and vaccines.
Notably, Abbott is in the process of ramping up its manufacturing capacities for antibody testing and is likely to immediately ship around 1 million tests this week to U.S. customers. Further, it will ship a total of 4 million tests in April. The company is on track to ramp up its capacity to 20 million tests in the United States in June and beyond as it expands the tests to run on its new Alinity i system.
Industry Prospects
Per a report by Grand View Research, the global molecular diagnostics market size was valued at $9.2 billion in 2019 and is expected to reach $18.2 billion by 2027, at a CAGR of 9%. Factors like progress in molecular diagnostics and the growing prevalence of infectious diseases are likely to drive the market.
Other Coronavirus-Related Progress
Of late, Abbott has been making a series of developments with respect to combatting the coronavirus pandemic.
In March, the company received the FDA’s EUA for its molecular point-of-care test, ID NOW COVID-19, for the detection of the virus. Running on Abbott’s ID NOW platform, it is the fastest molecular point-of-care test available at the moment.
The company received an EUA in March for its RealTime SARS-CoV-2 test used on the m2000 RealTime System. Currently, Abbott is on track to ship 150,000 tests to customers in the United States. Notably, the company is scaling up its production at its U.S. manufacturing location to reach the capacity of 1 million tests per week by the end of March.
Abbott believes that the two EUA tests, combined, can produce 5 million tests per month.
Price Performance
Shares of the company have gained 28.9% in the past year compared with the industry’s 5.3% rise and the S&P 500’s 1.7% fall.
Zacks Rank & Key Picks
Currently, Abbott carries a Zacks Rank #3 (Hold).
Some better-ranked stocks from the broader medical space are ResMed Inc. (RMD - Free Report) , National Vision Holdings, Inc. (EYE - Free Report) and Phibro Animal Health Corporation (PAHC - Free Report) .
ResMed has a projected long-term earnings growth rate of 14.4%. It currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
National Vision’s long-term earnings growth rate is estimated at 10.7%. The company presently has a Zacks Rank #2.
Phibro’s long-term earnings growth rate is estimated at 2.1%. It currently carries a Zacks Rank #2.
Breakout Biotech Stocks with Triple-Digit Profit Potential
The biotech sector is projected to surge beyond $775 billion by 2024 as scientists develop treatments for thousands of diseases. They’re also finding ways to edit the human genome to literally erase our vulnerability to these diseases.
Zacks has just released Century of Biology: 7 Biotech Stocks to Buy Right Now to help investors profit from 7 stocks poised for outperformance. Our recent biotech recommendations have produced gains of +50%, +83% and +164% in as little as 2 months. The stocks in this report could perform even better.
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