Myriad Genetics recently signed a commercialization plan with Pfizer Inc. PFE for FDA approval to use its BRACAnalysis CDx as a companion diagnostic with the latter's talazoparib. Meanwhile, Thermo Fisher Scientific Inc. TMO announced the sixth licensing agreement for its B·R·A·H·M·S PCT (procalcitonin) biomarker. In fact, there are many similar developments that clearly point toward the rapid emergence of molecular diagnostics in the MedTech space.
A Market Research Engine report published recently, indicates towards the still untapped potential of the global molecular diagnostics market. The report says that, this market is projected to value more than $11 billion by 2022, at a CAGR of more than 9% between 2016 and 2022.
Some analysts believe that rising incidence of infectious diseases and cancer, increasing awareness and acceptance of companion diagnostics and personalized medicine along with developments in molecular techniques are accelerating growth in this niche market.
Considering the bullish trends and forecasts, the molecular diagnostics market holds immense potential for investors interested in long-term gains.
AI Shapes Molecular Diagnostic Market
Artificial Intelligence (AI) has contributed massively to the diagnostics space - from allowing clinicians to assess and measure dimensions that were not feasible or practical to delivering more accurate and faster diagnostic results.
In this regard, South Korea-based Seegene Inc. succeeded in developing molecular diagnostics assays in only four days using a newly created AI-based assay development system.
Not only this, Siemens Healthineers has developed a suite of AI solutions that allows automation and standardization of complex diagnostics per patient requirements. Furthermore, U.K.-based diagnostics.ai uses a combination of AI and machine-learning to enhance diagnostic accuracy and lower costs.
Let us take a quick look at three companies from the MedTech space that are gaining momentum in the molecular diagnostics market.
3 MedTech Companies Gaining Momentum
Based in Redwood City, CA, Genomic Health, Inc.GHDX is a global cancer company with a focus on advanced molecular diagnostics. The company develops and commercializes genomic-based clinical tests for cancer diagnosis.
Genomic Health's Oncotype DX Breast Recurrence Score test has been identified as the only "preferred" test for making decisions regarding chemotherapy treatment for patients suffering from node-negative early-stage breast cancer per the newly updated National Comprehensive Cancer Network (NCCN) 2018 guidelines.
It also announced the publication of real-world clinical data supporting the use of the Oncotype DX Genomic Prostate Score (GPS) test, which has resulted in substantially greater use of active surveillance compared to no testing.
Positive study data, the NCCN updated guidelines and multiple positive private payor coverage decisions reflect the prospects of Genomic Health's tests.
Genomic Health's shares have outperformed the industry in the past year. The stock has rallied 91.1% against the industry's increase of 22% decline. The stock has a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Myriad Genetics, Inc.MYGN has been consistently trying to strengthen its hold in the high-potential molecular diagnostics market. The company recently signed a laboratory services agreement with Pfizer.
Per the agreement, Myriad Genetics will provide BRACAnalysis CDx testing in a Phase 2 study evaluating Pfizer's talazoparib for neo-adjuvant treatment of germline BRCA-mutated triple negative breast cancer.
The company has been gaining significantly from the GeneSight, Vectra DA, EndoPredict and Prolaris tests. Further, management believes that Hereditary cancer pricing has remained stable on a sequential basis for three consecutive quarters.
The stock has a Zacks Rank #3 (Hold). Myriad Genetics' shares have gained 22.7% in a year's time against the industry 's decline of 22%.
Based in Austin, TX, Luminex CorporationLMNX develops, manufactures and markets proprietary biological testing technologies with applications throughout the life sciences and diagnostics industry. Strong performance by the company's molecular diagnostic segment instills optimism. In the second quarter of 2018, each of the company's molecular diagnostics platforms - nonautomated xMAP, ARIES and VERIGENE - grew double-digits.
Luminex's molecular portfolio recently integrated the next-gen VERIGENE 2 system. VERIGENE 2 is a higher-plex instrument that can run complex assays of more than 50 pathogens in less than two hours.
Luminex's shares have outperformed the industry in a year's time. Notably, the stock has surged 28.9% compared with the industry's rise of 17.3%. The stock has a Zacks Rank #3.
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Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free reportPfizer Inc. (PFE): Free Stock Analysis ReportThermo Fisher Scientific Inc. (TMO): Free Stock Analysis ReportLuminex Corporation (LMNX): Free Stock Analysis ReportGenomic Health, Inc. (GHDX): Free Stock Analysis ReportMyriad Genetics, Inc. (MYGN): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research