We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Diagnostic Testing Remains Crucial in Combatting Coronavirus
Read MoreHide Full Article
At a time when most countries across the globe are struggling to cope with the impact of coronavirus pandemic, the onus is on innovation in the field of medical science to come up with a solution that can lead to a pandemic-free world.
Speaking of innovation, the past couple of months have witnessed the introduction of a plethora of extremely advanced testing kits by major MedTech companies. With the total cases number of coronavirus cases exceeding 2 million in the United States and the economy slowly reopening, it is needless to say how important it is for testing to ramp up under these circumstances.
Recently, a report by MedTech Dive stated that as per the analysts at Jefferies, the United States needs to increase its coronavirus testing capacity by 10 times or more with an estimate of at least 400 or 500 million tests required through the first COVID-19 season to contain the virus while reopening the economy.
If this happens, then some of the MedTech companies involved in diagnostic testing are likely to benefit immensely. For instance, per the analysts, MedTech behemoths like Abbott, Danaher, Roche and Thermo Fisher Scientific might gain from a collective $16 billion boost.
As of Jun 6, 2020, the United States had performed over 21.2 million tests for COVID-19 —the highest compared to any country globally. Needless to say, with almost every part of market in turmoil, it will be prudent to capitalize on the scenario by investing big in this space.
COVID-19 Diagnostic Testing: Innovations in Brief
On one hand, there are some tests that find the virus through the detection of the ribonucleic acid (RNA) of SARS-CoV-2 — the virus that causes COVID-19. On the other hand, there are some tests that identify the antibodies to the virus.
Currently, polymerase chain reaction (PCR) and antibody testing are the two primary ways used for the testing of citizens. However, last month, FDA issued the first emergency use authorization (EUA) for a COVID-19 antigen test — new category of tests for use in the ongoing pandemic. The EUA was granted to Quidel Corporation (QDEL - Free Report) to market its Sofia 2 SARS Antigen FIA, a rapid point-of-care test to be utilized with the Sofia 2 Fluorescent Immunoassay Analyzer for the rapid detection of SARS-CoV-2 in nasal or nasopharyngeal specimens from patients.
Although antibody tests will still remain crucial in determining any immunity that develops among the population, the antigen tests can be used to confirm cases of active SARS-CoV-2 infection without PCR’s arduous process of laboratory testing.
In addition to these testing methods, at-home COVID-19 test kits deserve mention. On May 29, Quest Diagnostics (DGX - Free Report) received EUA for its self-collection COVID-19 test kit from the FDA. With the intention of making more than a half-million test kits available by end of June, the company has plans to make additional kits available on an ongoing basis.
It cannot be stressed enough how crucial diagnostic testing is when it comes to nation’s response to COVID-19 and the FDA continues to take actions to help make these critical products available, including by issuing EUAs.
Stocks in the Spotlight
Even with the news of a potential vaccine making the rounds, it might take a few more months to reach the market. Meanwhile, investors might look into the following three stocks that have been making headlines when it comes to diagnostic testing.
Laboratory Corporation of America Holdings (LH - Free Report) announced in April that it will provide antibody tests for the virus causing COVID-19. Notably, there will not be any upfront out-of-pocket costs to people getting an order for a test through a doctor or healthcare provider, which includes telemedicine providers.
Further, in May, the company announced that its COVID-19 at-home collection test kit can be accessed by consumers nationwide with no upfront costs, in addition to healthcare workers and first responders.
In the wake of the coronavirus outbreak, Abbott Laboratories (ABT - Free Report) has made great strides with respect to diagnostic testing. In May, the company received EUA for its SARS-CoV-2 IgG lab-based serology blood test on the Alinity i system.
Further, last month, the company received EUA for its molecular test for COVID-19 for use on its new Alinity m molecular lab instrument (approved by the FDA in late March). Abbott has been working with hospitals and health systems in the United States to install this new instrument that will help keep up with the rising demand for testing.
The company previously stated about its efforts to develop another lab-based serology test to detect one more important antibody — IgM. However, it is yet to come out with this. In fact, the company is currently facing a temporary hindrance in this competitive niche as other players are coming up with advanced serology tests. However, with strong research base, we expect the company to overcome this pretty soon.
Shares of the Zacks Rank #3 (Hold) company has gained 12.5% in a year’s time, against the industry’s decline of 1.4%.
QIAGEN N.V (QGEN - Free Report) , a renowned molecular diagnostics solutions provider, received EUA for its QIAstat-Dx Respiratory SARS-CoV-2 Panel test in late March. Apart from delivering results in about one hour, this is the first syndromic testing solution that can differentiate novel coronavirus from 20 other serious respiratory infections.
Shares of the Zacks Rank #1 company has gained 29.2% on a year-to-date basis, compared with the industry’s growth of 7.8%.
5 Stocks Set to Double
Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor. Today, See These 5 Potential Home Runs >>
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Diagnostic Testing Remains Crucial in Combatting Coronavirus
At a time when most countries across the globe are struggling to cope with the impact of coronavirus pandemic, the onus is on innovation in the field of medical science to come up with a solution that can lead to a pandemic-free world.
Speaking of innovation, the past couple of months have witnessed the introduction of a plethora of extremely advanced testing kits by major MedTech companies. With the total cases number of coronavirus cases exceeding 2 million in the United States and the economy slowly reopening, it is needless to say how important it is for testing to ramp up under these circumstances.
Recently, a report by MedTech Dive stated that as per the analysts at Jefferies, the United States needs to increase its coronavirus testing capacity by 10 times or more with an estimate of at least 400 or 500 million tests required through the first COVID-19 season to contain the virus while reopening the economy.
If this happens, then some of the MedTech companies involved in diagnostic testing are likely to benefit immensely. For instance, per the analysts, MedTech behemoths like Abbott, Danaher, Roche and Thermo Fisher Scientific might gain from a collective $16 billion boost.
As of Jun 6, 2020, the United States had performed over 21.2 million tests for COVID-19 —the highest compared to any country globally. Needless to say, with almost every part of market in turmoil, it will be prudent to capitalize on the scenario by investing big in this space.
COVID-19 Diagnostic Testing: Innovations in Brief
On one hand, there are some tests that find the virus through the detection of the ribonucleic acid (RNA) of SARS-CoV-2 — the virus that causes COVID-19. On the other hand, there are some tests that identify the antibodies to the virus.
Currently, polymerase chain reaction (PCR) and antibody testing are the two primary ways used for the testing of citizens. However, last month, FDA issued the first emergency use authorization (EUA) for a COVID-19 antigen test — new category of tests for use in the ongoing pandemic. The EUA was granted to Quidel Corporation (QDEL - Free Report) to market its Sofia 2 SARS Antigen FIA, a rapid point-of-care test to be utilized with the Sofia 2 Fluorescent Immunoassay Analyzer for the rapid detection of SARS-CoV-2 in nasal or nasopharyngeal specimens from patients.
Although antibody tests will still remain crucial in determining any immunity that develops among the population, the antigen tests can be used to confirm cases of active SARS-CoV-2 infection without PCR’s arduous process of laboratory testing.
In addition to these testing methods, at-home COVID-19 test kits deserve mention. On May 29, Quest Diagnostics (DGX - Free Report) received EUA for its self-collection COVID-19 test kit from the FDA. With the intention of making more than a half-million test kits available by end of June, the company has plans to make additional kits available on an ongoing basis.
It cannot be stressed enough how crucial diagnostic testing is when it comes to nation’s response to COVID-19 and the FDA continues to take actions to help make these critical products available, including by issuing EUAs.
Stocks in the Spotlight
Even with the news of a potential vaccine making the rounds, it might take a few more months to reach the market. Meanwhile, investors might look into the following three stocks that have been making headlines when it comes to diagnostic testing.
Laboratory Corporation of America Holdings (LH - Free Report) announced in April that it will provide antibody tests for the virus causing COVID-19. Notably, there will not be any upfront out-of-pocket costs to people getting an order for a test through a doctor or healthcare provider, which includes telemedicine providers.
Further, in May, the company announced that its COVID-19 at-home collection test kit can be accessed by consumers nationwide with no upfront costs, in addition to healthcare workers and first responders.
Shares of this Zacks Rank #2 (Buy) stock has gained 5.2% against the industry’s decline of 10.3% in a year’s time. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
In the wake of the coronavirus outbreak, Abbott Laboratories (ABT - Free Report) has made great strides with respect to diagnostic testing. In May, the company received EUA for its SARS-CoV-2 IgG lab-based serology blood test on the Alinity i system.
Further, last month, the company received EUA for its molecular test for COVID-19 for use on its new Alinity m molecular lab instrument (approved by the FDA in late March). Abbott has been working with hospitals and health systems in the United States to install this new instrument that will help keep up with the rising demand for testing.
The company previously stated about its efforts to develop another lab-based serology test to detect one more important antibody — IgM. However, it is yet to come out with this. In fact, the company is currently facing a temporary hindrance in this competitive niche as other players are coming up with advanced serology tests. However, with strong research base, we expect the company to overcome this pretty soon.
Shares of the Zacks Rank #3 (Hold) company has gained 12.5% in a year’s time, against the industry’s decline of 1.4%.
QIAGEN N.V (QGEN - Free Report) , a renowned molecular diagnostics solutions provider, received EUA for its QIAstat-Dx Respiratory SARS-CoV-2 Panel test in late March. Apart from delivering results in about one hour, this is the first syndromic testing solution that can differentiate novel coronavirus from 20 other serious respiratory infections.
Shares of the Zacks Rank #1 company has gained 29.2% on a year-to-date basis, compared with the industry’s growth of 7.8%.
5 Stocks Set to Double
Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
Today, See These 5 Potential Home Runs >>