Yahoo Finance LabCorp (LH) Expands Colon Cancer Test Access With New Pact
Laboratory Corporation of America Holdings or LabCorp LH recently partnered with the Conference of National Black Churches (CNBC) to tackle health equity gaps in colorectal cancer screening. Through partnership, the companies will distribute screening kits to communities at higher risk of colon cancer.
The recent development is likely to bolster LabCorp Diagnostics business.
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The Conference of National Black Churches will distribute over 3,000 colorectal screening test kits across several urban and rural locations to promote awareness and offer expanded access to colorectal cancer screening tests, including Atlanta, Dallas, Memphis, Washington D.C., New Haven, Los Angeles and Richmond.
Patients can ask for the kit from their provider or can buy from Labcorp's Colorectal Cancer At-Home Fecal Immunochemical Test (FIT) through Labcorp OnDemand. FIT is a less invasive option for average-risk individuals that is intended to screen for early-stage colon cancer. This makes it convenient for patients to complete a screening test from their homes.
New Pact to Enhance Colon Testing Access
The partnership will increase access to testing options in urban and rural communities and will help LabCorp’s commitment to align health equity with its mission of helping the communities. Moreover, access to regular screening for chronic diseases like colorectal cancer is essential for improving quality of life.
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A projected 90% of colon cancer deaths are preventable if detected early, making it vital for patients to discuss the risk with their providers and to get screened for colon cancer.
Industry Prospects
Per a report by Mordor Intelligence, the colorectal cancer screening market was valued at $12,866 million in 2021, and it is expected to register a CAGR of 7.45% by 2028. The advent of efficacious genetic tests, an increase in the prevalence of colorectal cancer, and increasing cancer prevention initiatives are the factors driving the market.
Progress Within LabCorp Business
During the fourth quarter, the base business remained strong. Excluding COVID testing revenue, enterprise base business revenue grew 6% in the fourth quarter at a constant exchange rate or CER. Growth in diagnostics-based business revenue in the fourth quarter was strong due to routine and esoteric testing and revenues from the Ascension partnership. The Diagnostic business is expected to accelerate banking on 10.5% to 12.5% base business growth, benefiting by around 5 percentage points with a full year of Ascension partnership.
In Oncology, another high-growth area, LabCorp continues to expand oncology capabilities to serve clinicians and drug development customers. In the fourth quarter, the company launched a liquid biopsy test called LabCorp Plasma Focus. This test is used to match cancer patients with FDA-approved therapies using the patient's circulating tumor DNA taken from a blood draw. This is the first new product from Labcorp's acquisition of Personal Genome Diagnostics in 2022.
Price Performance
Shares of the company have lost 12.8% in a year against the industry’s fall of 4.9%.
Zacks Rank and Key Picks
LabCorp carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader medical space are Hologic, Inc. HOLX, Henry Schein, Inc. HSIC and Avanos Medical, Inc. AVNS.
Hologic, carrying a Zacks Rank #2 (Buy) at present, has an estimated long-term growth rate of 15.2%. HOLX’s earnings surpassed the Zacks Consensus Estimate in all the trailing four quarters, the average beat being 30.6%.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Hologic has gained 3.7% against the industry’s 16.8% fall in the past year.
Henry Schein, carrying a Zacks Rank #1 at present, has an estimated long-term growth rate of 8.1%. HSIC’s earnings surpassed estimates in three of the trailing four quarters and matched the same in the other, the average beat being 2.9%.
Henry Schein has lost 6.2% compared with the industry’s 5% decline in the past year.
Avanos, carrying a Zacks Rank #2 at present, has an estimated growth rate of 1.8% for 2023. AVNS’ earnings surpassed estimates in all the trailing four quarters, the average beat being 11%.
Avanos has lost 11.6% compared with the industry’s 16.8% decline in the past year.
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Laboratory Corporation of America Holdings (LH) : Free Stock Analysis Report
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