Credit: Shutterstock photoDiagnostic testing, information and services provider, Quest Diagnostics Inc . DGX , recently launched the in-house QNatal Advanced screening assay to identify chromosomal abnormalities in high-risk pregnant women. This is an attempt on the company's part to strengthen its diagnostic information services business.
Despite the news being a positive one for the women's health industry, it failed to positively impact the shares of the company. Evidently, following the news release, Quest Diagnostic's share price inched up only 0.5% to reach $70.88 yesterday.
Women conceiving at an advanced maternal age, mostly 35 years or higher, are at greater risk of pregnancy complications like miscarriage and genetic defects. Issues such as these and the associated risks only increase further with age.
QNatal Advanced is a noninvasive prenatal screening test that detects common as well as rare chromosomal abnormalities in maternal blood. This test analyzes cell-free fetal DNA in maternal blood, unlike conventional prenatal diagnostic tests
This test analyzes more chromosomal regions compared to most other noninvasive prenatal tests, and can be used as early as 10 weeks into gestation. Management believes screening results from this test will help a gynecologist suggest a more appropriate invasive prenatal test to confirm the findings.
According to the findings of a validation study conducted by Quest, the QNatal Advanced test exhibits excellent sensitivity and specificity, as well as low non-reportable outcomes. Patients can receive results of this test via Quest's Care360 connectivity solution, in the more absolute Yes/No module. This lends an additional advantage compared to other industry reports that score findings on a likelihood scale.
In the last reported quarter, the diagnostic information services business at Quest Diagnostics delivered strong top-line growth of 4.9%. The launch of QNatal Advanced, coupled with the company's attempts to present the findings of the validation study involving this test at a scientific conference soon, should derive sound revenue growth from the business in the quarters ahead.
Currently, Quest Diagnostics carries a Zacks Rank #2 (Buy). Some other top-ranked stocks in the medical-outpatient/home care industry are Amedisys Inc. AMED , AmSurg Corp. AMSG and Chemed Corp. CHE . While Amedisys sports a Zacks Rank #1 (Strong Buy), AmSurg and Chemed hold a Zacks Rank #2.
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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.
