Laboratory Corporation of America Holdings LH or LabCorp announced the launch of an at-home collection kit for diabetes screening, which measures hemoglobin A1c (HbA1c) from a small blood sample. With the introduction of the kit, consumers can access the diabetes risk test kit, as well as other health and wellness tests, through “Labcorp OnDemand.”
On the back of an equity investment made by LabCorp, the at-home collection device was co-developed for HbA1c by the company and Weavr Health, with the latter remaining the device owner.
The recent development is likely to fortify LabCorp’s Diagnostic business.
More on Labcorp OnDemand Diabetes Risk Test
The Labcorp OnDemand Diabetes Risk test utilizes a dried blood technology to provide a snapshot of the body’s average blood sugar levels over time. Consumers can proactively monitor their health status on a regular basis from the comfort of their home through a prick of the finger and a few drops of blood.
It is worth noting that LabCorp is the only commercial laboratory to offer HbA1c testing by using a new, cutting-edge collection device from Weavr Health. Apart from this, LabCorp is the first and only laboratory to get approval from the New York State Clinical Laboratory Evaluation Program for testing using the Weavr Velvet blood collection device, thereby making the Labcorp OnDemand Diabetes Risk test available across the nation.
Significance of the At-Home Collection Kit
Per LabCorp’s management, the Labcorp OnDemand Diabetes Risk test at-home collection kit makes it convenient for consumers to assess their diabetes risk and health status using an innovative and approved collection device. The test provides an easier way for consumers to manage their health and stay informed, leading to better health outcomes.
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Per a study published by Clinical Chemistry, results from samples collected via the Weavr Velvet device are more than 97% accurate compared with the results of a traditional blood draw. With the Weavr Velvet device, the company will be able to bring safe, efficient testing to doorsteps across the country.
Industry Prospects
Per a report by Grand View Research, the global diabetes devices market size was valued at $26.7 billion in 2021 and is expected to expand, seeing a CAGR of 8.2% by 2030. Growing technological advancements and a rise in the incidences of obesity, along with the increasing adoption of insulin delivery devices, are the major factors driving the market.
Recent Developments
In May 2022, LabCorp announced the completion of the acquisition of select assets from AtlantiCare’s clinical outreach business, which serves the AtlantiCare Physician Group and Affiliated Physicians and their patients across southern New Jersey. Through the enhanced relationship, LabCorp is advancing its commitment to AtlantiCare’s patients and providers to improve health and lives in the region through increased diagnostic testing access.
In April 2022, LabCorp introduced Getlabs for Labcorp — an innovative health care service that brings together LabCorp’s diagnostic tests and Getlabs’ phlebotomy service to easily test consumers from the comfort of their homes.
Price Performance
Shares of the company have lost 9.3% in a year compared with the industry's rise of 4.8%.
Zacks Rank and Key Picks
LabCorp currently carries a Zacks Rank #3 (Hold).
A few better-ranked stocks in the broader medical space are UnitedHealth Group Incorporated UNH, Medpace Holdings, Inc. MEDP and Alkermes plc ALKS.
UnitedHealth, with a Zacks Rank #2 (Buy), reported first-quarter 2022 earnings per share (EPS) of $5.49, which beat the Zacks Consensus Estimate by 1.7%. Revenues of $80.1 billion outpaced the consensus mark by 14.2%.
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UnitedHealth has an estimated long-term growth rate of 14.8%. UNH’s earnings surpassed estimates in the trailing four quarters, the average surprise being 3.7%.
Medpace reported first-quarter 2022 adjusted EPS of $1.69, which surpassed the Zacks Consensus Estimate by 34.1%. Revenues of $330.9 million outpaced the Zacks Consensus Estimate by 1.1%. It currently has a Zacks Rank #2.
Medpace has a historical growth rate of 27.3%. MEDP’s earnings surpassed estimates in the trailing four quarters, the average surprise being 17.1%.
Alkermes reported first-quarter 2022 adjusted EPS of 12 cents, which surpassed the Zacks Consensus Estimate of a penny. Revenues of $278.6 million outpaced the Zacks Consensus Estimate by 6.2%. It currently sports a Zacks Rank #1.
Alkermes has an estimated long-term growth rate of 25.1%. ALKS’ earnings surpassed estimates in the trailing four quarters, the average surprise being 350.5%.
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UnitedHealth Group Incorporated (UNH): Free Stock Analysis Report
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