In the field of esoteric testing, Laboratory Corporation of America Holdings or LabCorp LH recently achieved a new landmark with the launch of liquid biopsy test, Resolution ctDx Lung. This test, which is originally developed by Resolution Bioscience, is a non-invasive test for the detection of non-small cell lung cancer (NSCLC).
This development is going to broaden the company’s core line of oncology offerings.
Resolution ctDx Lung at a Glance
Here we recall LabCorp’s commercial partnership with non-invasive liquid biopsy platform developer Resolution Bioscience that took place last February. Per the deal agreement, both the companies agreed to come together to make the Resolution ctDx Lung assay available to clinicians and patients.
This fast and accurate liquid biopsy test is performed on a standard blood sample and detects actionable mutations in genes associated with NSCLC. The test provides vital information needed to select the most effective targeted treatments for individual patients. The test will be run by Resolution Bioscience and is already covered under Medicare.
Resolution ctDx Lung assay is based on Resolution Bioscience’s patented cell-free DNA (cfDNA) analysis platform. This platform includes proprietary targeted capture next-generation sequencing (NGS) biochemistry and tightly coupled, cloud-based bioinformatics. Going by the studies, Resolution ctDx test offers better sensitivity than other currently available liquid biopsy tests for NSCLC. The test is currently being used to select the appropriate plasma-directed therapy in an ongoing study of more than 1,000 patients with stage II, III, or IV NSCLC. Per LabCorp, to date, this test has offered over 95% positive clinical response.
Per a Grand View Research report, the global cancer diagnostics market size was valued at $144.4 billion in 2018 and is expected to reach $249.6 billion by 2026 at a CAGR of 7%. This indicates solid opportunities for LabCorp.
LabCorp’s Strategic Actions in Esoteric Testing
The company continues to provide the foundation for new collaborations with health systems, large physician groups and managed care partners. LabCorp is also working in areas such as women's health, medical drug monitoring, genetics and oncology testing, as well as in critical collaborations with players like Thermo Fisher and Walgreens. In January 2020, the company announced about adopting Thermo Fisher’s Ion Torrent Genexus System and Oncomine Precision Assay for use in research and development of companion diagnostics as well as other future oncology and precision medicine applications. Also, its partnership with UnitedHealthcare has helped LabCorp to become a contracted laboratory provider for all major national plans.
Over the past year, shares of LabCorp have improved 6.4% against the industry's 8.4% dip.
Zacks Rank & Key Picks
Currently, LabCorp carries a Zacks Rank #3 (Hold).
Some better-ranked stocks from the broader medical space are QIAGEN N.V. QGEN, Thermo Fisher Scientific Inc. TMO and Hologic, Inc. HOLX.
QIAGEN’s long-term earnings growth rate is estimated at 22.3%. It currently sports a Zacks Rank #1. (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Thermo Fisher’s long-term earnings growth rate is estimated at 15%. It currently carries a Zacks Rank #2 (Buy).
Hologic’s long-term earnings growth rate is estimated at 15.5%. The company presently sports a Zacks Rank #1.
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