Yahoo Finance Quest Diagnostics (DGX) to Offer Lab Services for Lee Health
Quest Diagnostics Incorporated DGX recently partnered with Southwest Florida's primary community-owned health system, Lee Health. This collaboration is intended to improve Lee Health’s diagnostic services to patients and doctors.
The agreement requires Quest Diagnostics to provide supply chain expertise in laboratory equipment, supplies and procurement processes for five Lee Health-owned hospitals and a few particular outpatient centers. Added to this, the company will continue to conduct reference testing for Lee Health.
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For Lee Health, the collaboration is expected to help streamline its laboratory operations. The ability to utilize Quest Diagnostics’ purchasing power for equipment and supplies and its expertise in supply chain logistics will enable Lee Health to continue delivering high-quality care to patients.
Per Quest Diagnostics’ management, hospital systems like Lee Health are turning to the company for help in executing their laboratory strategy as individuals return to care and hospitals contend with post-COVID challenges. The latest collaboration will help Lee Health benefit from Quest Diagnostics’ expertise, innovation and scale, allowing them to focus on providing quality care to their patients.
Industry Prospects
Per a report published in GlobeNewswire, the clinical laboratory services market is expected to see a CAGR of 5.8% from 2020 to 2027. Increasing incidence of chronic illnesses, growing need for early diagnostic testing, technological advancements, government initiatives and a rise in the number of new diseases that can potentially raise morbidity, death and economic harm can be attributable to market growth.
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Given the market potential, Quest Diagnostics’ latest collaboration with a renowned healthcare provider in Southwest Florida seems strategic.
Other Notable Developments
This month, Quest Diagnostics received FDA’s emergency use authorization (EUA) for its proprietary monkeypox test. Quest Diagnostics’ Monkeypox Virus Qualitative Real-Time PCR is intended to detect monkeypox and other non-variola orthopoxvirus DNA using lesion swab specimens. The regulatory nod came on the heels of the Department of Health and Human Services’ declaration to allow the FDA Commissioner to issue a EUA for in-vitro diagnostics to expand the availability of tests for monkeypox.
In August 2022, the company launched a new obstetrics laboratory test panel intended to help physicians screen for hepatitis C (HCV) in all eligible pregnant individuals. The novel test panel follows a Quest Diagnostics Health Trends study with the Centers for Disease Control and Prevention (CDC). Adding HCV screening to Quest Diagnostics’ obstetrics panel will enable physicians to provide guideline-based care, reducing HCV infection during pregnancy and facilitating positive results for patients and their newborns.
Share Price Performance
DGX has outperformed its industry in the past year. The stock has gained 20.2% against a 32.2% decline of the industry.
Zacks Rank and Key Picks
Currently, Quest Diagnostics carries a Zacks Rank #3 (Hold).
A few better-ranked stocks in the broader medical space that investors can consider are AMN Healthcare Services, Inc. AMN, ShockWave Medical, Inc. SWAV and McKesson Corporation MCK.
AMN Healthcare has a long-term earnings growth rate of 3.2%. The company surpassed earnings estimates in the trailing four quarters, delivering a surprise of 15.7%, on average. It currently flaunts a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
AMN Healthcare has outperformed its industry in the past year. AMN has lost 6.1% against the industry’s 37% fall.
ShockWave Medical, sporting a Zacks Rank #1 at present, has an estimated growth rate of 33.1% for 2023. The company’s earnings surpassed estimates in all the trailing four quarters, the average beat being 180.1%.
ShockWave Medical has outperformed its industry in the past year. SWAV has gained 35% against the industry’s 32.6% fall in the past year.
McKesson has an estimated long-term growth rate of 9.9%. The company surpassed earnings estimates in the trailing three quarters and missed in one, delivering a surprise of 13%, on average. It currently carries a Zacks Rank #2 (Buy).
McKesson has outperformed its industry in the past year. MCK has gained 71.1% against the industry’s 15.1% fall.
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