Shares of leading diagnostics information company
Quest Diagnostics Inc.
) rose 4.45% to close at $57.99 yesterday. This was since the
company announced the U.S. Food and Drug Administration (FDA)
510(k) clearance and receipt of CLIA (Clinical Laboratory
Improvement Amendments) moderate complexity categorization for
its Focus Diagnostics business' new Simplexa HSV 1 & 2 Direct
molecular test on the 3M Integrated Cycler.
This Simplexa test, the first molecular test to be approved by
the FDA that enables qualitative detection and differentiation of
herpes simplex virus 1 (HSV-1) and herpes simplex virus 2 (HSV-2)
in cerebrospinal fluid (CSF) in patients suffering from central
nervous system (CNS) infection, including encephalitis. This CE
marked test delivered 100% and 98% sensitivity in clinical
studies for detection of HSV-1 and HSV-2, respectively.
Encephalitis is an inflammation of the brain often caused by
the herpes simplex or other viruses. The availability of this
Simplexa HSV 1 & 2 will enable the healthcare providers to
take more informed therapeutic decisions in a timely manner for
patients suffering from encephalitis. We remain confident about
the efficacy of this test and expect the recent FDA approval to
seamlessly strengthen the company's foothold in the U.S.
companion diagnostic market.
Quest Diagnostics generated revenue of $7.1 billion in FY13.
The company renders services through its other businesses like
AmeriPath, Dermpath Diagnostics, Focus Diagnostics and Athena
Diagnostics. Focus Diagnostics manufactures Simplexa HSV 1
& 2 Direct, which has been launched commercially in the
U.S. Focus Diagnostics is set to become the first company
to deliver diagnostic resolution for the emerging infectious
diseases. Its major achievements include assays for West Nile
Virus, SARS and Influenza A H1N1.
Currently, Quest Diagnostics has a Zacks Rank #4 (Sell). Some
better-ranked stocks in the broader healthcare industry are
China Cord Blood Corporation
). Chemed Corp. sports a Zacks Rank #1 (Strong Buy) while
China Cord Blood Corporation and PharMerica Corporation carry
a Zacks Rank #2 (Buy).
CHEMED CORP (CHE): Free Stock Analysis Report
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