Laboratory Corporation of America Holdings, Inc., commonly known as Labcorp (LH), has made a significant stride with the introduction of an innovative, FDA-cleared blood test designed for assessing the risk and managing severe preeclampsia. Preeclampsia is a perilous condition characterized by high blood pressure that can occur during pregnancy and postpartum.
This novel test detects two angiogenic biomarkers—serum soluble fms-like tyrosine kinase 1 (sFlt-1) and placental growth factor (PlGF)—associated with preeclampsia. Developed by Thermo Fisher Scientific, it has been hailed as one of TIME Magazine’s Best Inventions of 2023.
The introduction of this test is anticipated to fortify Labcorp’s Diagnostics Business, underscoring the company’s commitment to advancing healthcare solutions.
Insights into the New Test
The newly launched test system, accessible through healthcare providers, is the first FDA-cleared biomarker test aiding in the assessment of the risk of progression to severe preeclampsia. Severe preeclampsia stands as a leading cause of maternal and fetal mortality in the United States.
This groundbreaking test, when used in conjunction with other clinical evaluations and laboratory tests, assists clinicians in identifying hospitalized patients with pregnancy-related hypertension who are at risk of developing severe preeclampsia within two weeks of taking the test. Validation of this utility was provided by the PRAECIS study, a comprehensive investigation involving over 1,000 pregnant women at 18 medical centers across the United States.
Implications of the Launch
Labcorp is delighted to collaborate with Thermo Fisher to introduce this pioneering test, which serves as a valuable tool for assessing patients hospitalized due to hypertensive disorders during pregnancy. It equips healthcare providers with early and objective information, facilitating the effective management of preeclampsia.
Aligned with Labcorp’s core mission of enhancing health and well-being, this offering underscores the company’s commitment to offering a comprehensive and advanced range of diagnostic tests. This assists both patients and healthcare professionals by providing clinically relevant and impactful information, ultimately leading to better outcomes for parents and their newborns.
Industry Outlook
According to a report by Value Market Research, the global demand for Preeclampsia Diagnostics Market is projected to reach a market size of nearly $4177.69 million by 2030, reflecting a significant increase from $1373.32 million in 2022, with a CAGR of 14.92%. This growth trajectory is attributed to ongoing research and development efforts aimed at introducing new tests for detecting biomarkers indicative of preeclampsia.
Other Noteworthy Developments
In October 2023, Labcorp announced the nationwide availability of its blood biomarker test, the Amyloid-Tau-Neurodegeneration (“ATN”) Profile. This test can be used by physicians to evaluate patients suspected of having Alzheimer’s disease or other potential causes of cognitive impairment, based on clinical observation and cognitive screenings.
During the same period, Labcorp also finalized an agreement with Baystate Health to acquire their outreach laboratory business and selected operating assets, including laboratory service centers across Massachusetts. The transaction is anticipated to conclude in the early months of 2024, subject to customary closing conditions and regulatory approvals.
Stock Performance
Over the past six months, Labcorp’s shares have observed a 4.1% increase, outperforming the industry’s 1.7% decline, indicating a positive trajectory for the company.
Zacks Rank and Top Picks
LH currently holds a Zacks Rank #3 (Hold).
Some other stocks worth considering in the broader medical sector include Universal Health Services (UHS), Integer Holdings Corporation (ITGR), and Acadia Healthcare (ACHC).
Universal Health Services holds a Zacks Rank #2 (Buy) and is estimated to witness a growth rate of 4.4% in 2024. UHS has consistently surpassed earnings estimates over the past four quarters, averaging a 5.47% surprise. The company’s shares have displayed a 6.2% increase over the last year, outperforming the industry’s 15.4% rise.
Integer Holdings Corporation holds a Zacks Rank of 2 and is projected to experience a long-term growth rate of 15.8%. ITGR has surpassed earnings estimates in each of the trailing four quarters, with an average surprise of 11.9%. The company’s shares have surged by 36.9% in the past year, surpassing the industry’s 1.9% decline.
Acadia Healthcare, carrying a Zacks Rank of 2, is expected to witness a long-term growth rate of 10.4%. The company’s long-term earnings are projected to grow at 11.2%. ACHC’s shares have shown a 4.3% increase in the past six months, compared to the industry’s rise of 11.9%.
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