Laboratory Corporation of America (NYSE:LH) Holdings or LabCorp LH recently received a new Emergency Use Authorization (EUA) from the FDA for its new COVID-19 test that uses heat extraction process instead traditional reagents for RNA extraction in the testing method. This new, high-throughput method reduces the company’s supply chain dependency, improving the turnaround time and efficiency of its RT-PCR tests.
LabCorp claims to be the first commercial laboratory to receive a EUA for this kind of technique.
More on Heat Extraction Testing Method
According to LabCorp, this process which has comparable sensitivity to current extraction methods, traps viral particles, eliminating the need for RNA extraction reagents to capture and concentrate viral nucleic acid.
This significantly improves accuracy of the testing by streamlining resources and reducing the time to complete the testing procedure and report results. The method also adds to other existing LabCorp molecular tests, such as its short nasal swab for at-home collection. To note, LabCorp’s current average result delivery time for COVID-19 molecular tests is 24 hours.
One More EUA in Testing
In the same press release, the company noted that as the first commercial laboratory, it received the FDA’s EUA for use of matrixed pooling on samples collected outside a healthcare setting via its Pixel by LabCorp and LabCorp At Home COVID-19 test collection kits. This latest EUA for matrixed pooling is an extension of the EUA issued in July. This enabled LabCorp to increase testing capacity at lower turnaround time.
Pooling allows for increased testing capacity and can quickly provide quality test results for individuals within the group, without requiring retesting in majority of cases. Pooled testing may be used for populations at low risk of COVID-19, when testing demand exceeds laboratory capacity, or when testing reagents are in short supply.
LabCorp's COVID-19 Ventures So Far
In terms of COVID-19 developments, LabCorp was the first commercial lab to launch PCR testing on Mar 5, just after the FDA liberalized the rules around EUA for testing. Since then, LabCorp has rapidly expanded both, capacity and accessibility for testing.
The company has performed more than 8.5 million molecular tests with current capacity of 180,000 tests per day and this capacity is growing. Molecular testing is now processed in 16 labs, including Covance Drug Development Central Lab in Indianapolis.
LabCorp has also significantly expanded accessibility of PCR testing to reach even those in underserved communities. These PCR tests are available to doctors, hospitals, other healthcare providers, retail pharmacy chains, drive-through testing sites, and a website.
The company is the first lab authorized for at-home sample collection through Pixel by LabCorp platform. It also was recently the first to offer seamless digital service to help doctors electronically order a COVID-19 at-home sample collection for patients as appropriate. To help meet the rapid acceleration in sample volumes, the company recently received an EUA for pool testing.
LabCorp also began offering antibody testing in April and performed more than 2 million tests with capacity for 300,000 tests per day. The company has launched a neutralizing anybody test to assess the capacity of antibodies in patient plasma, which may help accelerate the evaluation of vaccines.
Price Performance
Shares of the company have gained 12.6% in the past year compared with the industry’s rise of 9.4%.
Zacks Rank & Stocks to Consider
Currently, LabCorp carries a Zacks Rank #3 (Hold).
A few better-ranked stocks from the broader medical space include QIAGEN N.V. QGEN, Thermo Fisher Scientific Inc (NYSE:TMO). TMO and Globus Medical (NYSE:GMED), Inc. GMED.
QIAGEN’s long-term earnings growth rate is estimated at 22.3%. It currently flaunts 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 15.5%. It currently carries a Zacks Rank #2 (Buy).
Globus Medical’s long-term earnings growth rate is estimated at 13%. The company presently carries a Zacks Rank #2.
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QIAGEN N.V. (QGEN): Free Stock Analysis Report
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