Roche Acquires CAPP Medical to Strengthen Cancer Diagnosis - Analyst Blog

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Roche Holding AGRHHBY announced that it has acquired privately-held genomics research company, CAPP Medical.

CAPP Medical is developing a disruptive liquid non-invasive cancer detection technology using next-generation DNA sequencing. The company was founded by oncologists from Stanford University. This novel technology is designed to isolate and quantify small amounts of circulating tumor DNA through a simple blood draw, which can potentially be used for cancer therapy selection, and monitoring tumor response and resistance to therapy.

The acquisition will further strengthen Roche's diagnostics portfolio. As per Roche, next-generation sequencing assays have the ability to significantly advance the duration of cancer diagnosis and change routine cancer diagnostic monitoring. This, in turn, can be highly cost effective compared to the current standard of using PET and CT imaging to monitor tumor progression.

Roche specializes in drugs for oncology, immunology and infectious diseases. Apart from providing therapeutic products and services for diverse medical needs, the company focuses on innovative diagnostic solutions for early detection and treatment of diseases.

This pharmaceutical major has a broad portfolio of diagnostic tests with over a hundred high-quality Elecsys assays for immune testing along with a new generation of fully-automated cobas analyzers for improved medical decision making, scheduling and efficiency.

We are impressed by Roche's efforts to strengthen its Diagnostic division.

Roche currently carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the health care sector include Mallinckrodt plc MNK , ArQule, Inc. ARQL and Valeant Pharmaceuticals VRX . All three 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.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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