Quest Diagnostics DGX recently entered into a strategic agreement with NewYork-Presbyterian to extend access to quality, advanced laboratory services for the providers and patients. The agreement targets to serve NewYork-Presbyterian's providers and patients in the greater New York region and beyond.
The latest development is likley to broaden Quest Diagostics' laboratory services offering.
About NewYork-Presbyterian
NewYork-Presbyterian is one of the nation's largest and most comprehensive integrated academic healthcare systems, comprising 10 hospitals and campuses in New York, nearly 200 primary and specialty care clinics and medical groups and a range of telemedicine services.
More on the News
Per the definitive agreement, Quest Diagnostics will obtain lab assets in New York City and the Tri-State Area, while NewYork-Presbyterian will continue to own and operate hospital lab services, including its anatomic pathology services.
The companies expect to close the transaction in the second quarter of 2023, subject to pending customary regulatory approvals. Financial details of the transaction were kept under wraps.
Strategic Efforts
Per Quest Diagnostics’ management, Quest Diagnostics and NewYork-Presbyterian have a keen focus on the patient, deep roots in New York and reputations nationwide and beyond for better healthcare services. The agreement is intended to leverage Quest Diagnostics’ ability to offer advanced and quality clinical laboratory services.
Image Source: Zacks Investment Research
Moreover, Quest Diagnostics and NewYork-Presbyterian share a common belief that excellent patient care should be accessible to all. Both companies are determined that the agreement will enable the patients greater access to advanced, quality laboratory services.
Industry Prospects
Per a report by Grand View Research, the global clinical laboratory service market size was $201.94 billion in 2021 and is expected to register a CAGR of 3.7% by 2030. The increasing burden of chronic diseases and the growing demand for early diagnostic tests fuel the market.
Recent Developments
In December 2022, Quest Diagnostics entered into a strategic collaboration intended to extend access to advanced, quality and economical laboratory services fueling affordable care for communities in Maine. Upon completing the transaction, the collaboration will allow physicians and patients throughout Maine to get an advantage from access to Quest Diagnostic's industry-leading and highly advanced test menu, broad health plan coverage and lower costs for many services.
In November 2022, Quest Diagnostics acquired select assets of LabCare Plus — the outreach laboratory services business of Summa Health — a large integrated health system. With the buyout, the company expands access to diagnostic advancement and insights, empowering better health for more communities in Northeastern Ohio.
Price Performance
Shares of the company have gained 10.3% in the past six months against the industry’s fall of 14.3%.
Zacks Rank and Key Picks
Currently, Quest Diagnostics carries a Zacks Rank #2 (Buy).
Some other top-ranked stocks in the broader medical space are AMN Healthcare Services, Inc. AMN, Cardinal Health, Inc. CAH and Merit Medical Systems, Inc. MMSI.
AMN Healthcare, carrying a Zacks Rank #2 at present, has an estimated long-term growth rate of 3.3%. AMN’s earnings surpassed the Zacks Consensus Estimate in all the trailing four quarters, the average beat being 10.9%.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
AMN Healthcare has lost 2.2% compared with the industry’s 23.2% decline in the past year.
Cardinal Health, carrying a Zacks Rank #2 at present, has an estimated long-term growth rate of 11.6%. CAH’s earnings surpassed estimates in two of the trailing four quarters and missed the same in the other two, the average beat being 6.4%.
Cardinal Health has gained 44.4% against the industry’s 6.2% decline in the past year.
Merit Medical, flaunting a Zacks Rank #2 at present, has an estimated long-term growth rate of 11%. MMSI’s earnings surpassed estimates in all the trailing four quarters, the average beat being 25.4%.
Merit Medical has gained 18.6% against the industry’s 6.2% decline in the past year.
Free Report Reveals How You Could Profit from the Growing Electric Vehicle Industry
Globally, electric car sales continue their remarkable growth even after breaking records in 2021. High gas prices have fueled his demand, but so has evolving EV comfort, features and technology. So, the fervor for EVs will be around long after gas prices normalize. Not only are manufacturers seeing record-high profits, but producers of EV-related technology are raking in the dough as well. Do you know how to cash in? If not, we have the perfect report for you – and it’s FREE! Today, don't miss your chance to download Zacks' top 5 stocks for the electric vehicle revolution at no cost and with no obligation.
>>Send me my free report on the top 5 EV stocksQuest Diagnostics Incorporated (DGX) : Free Stock Analysis Report
Cardinal Health, Inc. (CAH) : Free Stock Analysis Report
Merit Medical Systems, Inc. (MMSI) : Free Stock Analysis Report
AMN Healthcare Services Inc (AMN) : Free Stock Analysis Report
To read this article on Zacks.com click here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
