BURLINGTON, N.C. - Labcorp (NYSE:LH), a provider of laboratory services, announced today the introduction of Labcorp® Plasma Detect™, a molecular residual disease (MRD) solution for early-stage colon cancer. This clinically validated test uses whole-genome sequencing to detect circulating tumor DNA (ctDNA), which can help identify patients at increased risk of cancer recurrence following surgery or adjuvant chemotherapy.
Labcorp Plasma Detect is the latest addition to the company's precision oncology portfolio, designed to improve patient outcomes by aiding clinical research and drug development. The test is part of a suite of liquid biopsy solutions, including Labcorp® Plasma Focus™ and Labcorp® Plasma Complete™, developed by Personal Genome Diagnostics, Inc. (PGDx®), a Labcorp company.
The test was developed under PGDx's quality management system and has undergone extensive analytical and clinical validation to ensure high sensitivity and specificity. Unlike other tests that require patient-specific panels, Labcorp Plasma Detect does not, making it more accessible for global research programs and clinical trials. Currently validated for early-stage colon cancer, Labcorp is working to expand its use to other cancers such as lung and bladder cancer.
Labcorp's new MRD test will be featured in a presentation at the American Association for Cancer Research (AACR) annual meeting, showcasing its clinical validity based on the PROVENC3 study conducted in collaboration with the Netherlands Cancer Institute (NKI). Additionally, the test will support the MEDOCC-CrEATE trial, which aims to understand the effectiveness of adjuvant chemotherapy in preventing recurrences in stage II colon cancer patients.
Remond Fijneman, associate group leader at NKI, highlighted the test's potential in guiding treatment decisions due to its sensitivity and the rapid turnaround time that aligns with clinical decision-making schedules.
Labcorp's introduction of Plasma Detect reinforces its role in advancing cancer diagnostics and treatment strategies. The company's global network and expertise in diagnostics and drug development support the healthcare industry, with a significant contribution to new drug approvals and patient testing services worldwide.
This announcement is based on a press release statement from Labcorp.
InvestingPro Insights
As Labcorp (NYSE:LH) unveils its Labcorp® Plasma Detect™ for early-stage colon cancer, the company's financial health and market position remain key factors for investors. With a market capitalization of $17.77 billion, Labcorp demonstrates a strong presence in the healthcare sector. The company's commitment to innovation and expansion in cancer diagnostics is reflected in its strategic moves, such as the aggressive share buybacks noted by InvestingPro Tips, signaling confidence by management in the company's value proposition.
Labcorp's P/E ratio stands at 44.19, which indicates a high earnings multiple. However, when adjusted for the last twelve months as of Q4 2023, the P/E ratio becomes more favorable at 26.26, suggesting that investors may be looking at a more nuanced valuation in light of recent earnings. This is supported by the company's revenue growth, which has seen a moderate increase of 2.51% over the last twelve months as of Q4 2023, hinting at steady progress within its operational framework.
Investors interested in the dividend aspect of Labcorp will note the dividend yield of 1.36%, with the last dividend ex-date being February 26, 2024. This, combined with the company's position as a prominent player in the Healthcare Providers & Services industry, and the expectation of net income growth this year, as highlighted in InvestingPro Tips, could make LH an attractive stock for those looking for stability in the healthcare sector.
With these insights, readers are encouraged to explore further InvestingPro Tips for Labcorp, which offer a total of 8 additional strategic points for investors to consider. For those who wish to delve deeper into the company's analytics, use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription at InvestingPro.
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