Luminex Gets CE Mark For ARIES Norovirus Assay, Shares Rally

Shares of Luminex Corporation (NASDAQ:LMNX) gained 1.5% to close at $21.38 after the company announced the receipt of CE-IVD mark for the ARIES Norovirus Assay.

Norovirus is a sample to answer test for detection and differentiation of norovirus genogroup I and II, which is collected from stool samples of patients with acute gastroenteritis. Notably, this is the fifth CE-marked assay of Luminex's sample to answer ARIES product line.

The CE-IV(D) status for ARIES Norovirus under the European Directive is likely to bolster the company’s footprint in the niche space. We believe Luminex will benefit from favorable tidings like these at the regulatory front for its ARIES System along with its NxTAG Respiratory Pathogen Panel expansion plans. These products are likely to serve as major growth drivers over the long term by accelerating organic growth and expanding market share.

The ARIES Norovirus Assay is a qualitative in vitro diagnostic test that leverages on the company’s flagship xTAG Gastrointestinal Pathogen Panel (GPP), VERIGENE Enteric Pathogens Test (EP), and the ARIES C. difficile Assay (RUO). These platforms form the company’s comprehensive gastroenterological testing portfolio.

The launch of several FDA-approved ARIES products, including the Group B Streptococcus (GBS) Assay for antepartum detection earlier this year, is noteworthy in this regard.

We are also upbeat about the recent FDA approval of Bordetella Assay for direct detection and identification of Bordetella pertussis. In 2016, Luminex’s ARIES Flu A/B & RSV assay received FDA nod. The company also received an Emergency Use Authorization (EUA) approval for its xMAP MultiFLEX Zika RNA Assay the same year.

Zacks Rank & Share Price Trend

Luminex sports a Zacks Rank #1 (Strong Buy).

A glimpse at the price movement reveals that the company has had an impressive run on the bourse over the last three months. The stock has gained roughly 17.9%, higher than the Zacks categorized Medical instruments sub-industry’s addition of almost 8%.

Moreover, the current level compares favorably with the S&P 500’s return of 3.8% over the same time frame. This, together with a long-term expected earnings growth rate of 16.3%, instills confidence in investors.

The company’s estimate revision trend for the current year has also been positive. In the past 60 days, two analysts moved north, with no movement in the opposite direction. The magnitude of estimate revision increased around 37.5% to 55 cents per share over the same time frame.

Other Key Picks

A few other top-ranked stocks in the broader medical sector are Inogen Inc. (NASDAQ:INGN) , IDEXX Laboratories, Inc. (NASDAQ:IDXX) and Edap Tms S.a. (NASDAQ:EDAP) . Notably, all the stocks sport a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.

Inogen has a long-term expected earnings growth rate of 17.50%. Notably, the stock represents an impressive one-year return of 88.3%.

IDEXX Laboratories has a long-term expected earnings growth rate of 19.4%. Notably, the stock represents an impressive one-year return of 77.3%.

Edap Tms represents an impressive one-year return of 28.9% over the last three months. The company provided a solid earnings surprise of 533.3% in the last reported quarter.

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