Credit: Shutterstock photoQuest Diagnostics Inc.DGX recently entered into a national specimen-draw agreement with CardioDx, Inc., a molecular diagnostics company specializing in cardiovascular genomics. Per the agreement, both the companies will work toward expanding patient access to the Corus CAD laboratory-developed blood test for assessment of obstructive coronary artery disease ("CAD").
According to Quest Diagnostics, this Corus CAD test will complement its entire set of advanced diagnostic information services for cardiovascular disease and personalizing treatment. The inclusion of this test to the company's existing offerings will help generate value from Quest's large network of patient service centers (2,200) and approximately 4,000 phlebotomists in physician offices in the U.S.
CAD, being the most common form of heart disease with mortality rate as high as one in each seven deaths in the U.S., Quest Diagnostics foresees tremendous growth potential from this development. According to the company, traditional diagnosis of CAD is complicated as it involves medical imaging or invasive procedures in which a catheter is inserted in an artery or vein in patient's groin, neck or arm and threaded through a blood vessel to visualize the heart arteries.
However, Corus CAD test is the first and only commercially available blood-based test that can quickly and efficiently determine if a patient's symptoms are caused by obstructive CAD. While evaluating symptomatic patients, this test helps determine whether further cardiac testing is necessary, thus helping them avoid unnecessary non-invasive imaging and invasive cardiac procedures.
With growing concerns about radiation exposure and test overutilization, we can expect huge market acceptance of the Corus CAD test within the medical community.
In line with its five-point strategy, Quest Diagnostics has been focusing on areas with high potential such as gene-based esoteric testing for cancer, cardiovascular disease, infectious disease and neurological disorders. The company has experienced increasing demand for gene-based and esoteric tests compared with routine tests due to increased esoteric mix contributed by Athena and Celera. It expects this trend to continue for the remainder of 2015 as well. The company has also witnessed growth in prescription drug monitoring. Besides, several new relationships with hospitals and integrated delivery networks acted as other growth drivers.
Currently, the stock carries a Zacks Rank #2 (Buy). Other top-ranked medical stocks include Amedisys Inc. AMED , AmSurg Corp. AMSG and Foundation Healthcare, Inc. FDNH . All these stocks sport a Zacks Rank #1 (Strong Buy).
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
