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Labcorp releases H5 bird flu test as outbreak spreads

Published 12/17/2024, 07:13 AM
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Labcorp, with a global presence and a workforce of over 67,000, has played a significant role in diagnostics and drug development, supporting a substantial percentage of FDA-approved drugs in 2023 and performing numerous tests for patients worldwide. With annual revenue exceeding $12.7 billion and a strong earnings outlook, InvestingPro analysis reveals 8 additional key insights about Labcorp's financial performance and market position. According to InvestingPro's Fair Value assessment, the stock appears slightly overvalued at current levels, trading at a P/E ratio of 44.7. With annual revenue exceeding $12.7 billion and a strong earnings outlook, InvestingPro analysis reveals 8 additional key insights about Labcorp's financial performance and market position. According to InvestingPro's Fair Value assessment, the stock appears slightly overvalued at current levels, trading at a P/E ratio of 44.7.

The test, developed in collaboration with the U.S. Centers for Disease Control and Prevention (CDC), is part of an initiative to bolster public health preparedness and testing infrastructure. Labcorp's chief scientific officer, Marcia Eisenberg, Ph.D., emphasized the company's commitment to providing healthcare providers with essential diagnostic tools for emerging infectious diseases.

Healthcare professionals can now order the test for patients showing symptoms of H5 bird flu infection. The test requires a nasopharyngeal swab specimen, which is then analyzed using polymerase chain reaction (PCR) technology to detect the presence of H5 virus genetic material.

Labcorp's partnership with the CDC and its contribution to testing for viruses like Zika, SARS-CoV-2, and mpox underscore the company's role in responding to infectious disease threats. The new test is part of Labcorp's ongoing efforts to support healthcare providers and public health agencies by enhancing testing capabilities.

While the test is widely available in the United States, it is not yet authorized for use in New York State. The CDC continues to monitor the situation closely, and the U.S. Department of Agriculture (USDA) is conducting comprehensive surveillance of the nation's milk supply and dairy herds.

Labcorp, with a global presence and a workforce of over 67,000, has played a significant role in diagnostics and drug development, supporting a substantial percentage of FDA-approved drugs in 2023 and performing numerous tests for patients worldwide.

This news is based on a press release statement from Labcorp.

In other recent news, Laboratory Corporation of America (NYSE:LH) Holdings, known as LabCorp, reported a 7% year-over-year revenue increase to $3.3 billion in its Q3 2024 earnings call, with diagnostics revenue growing by 9% and biopharma laboratory services rising by 3%. Adjusted earnings per share (EPS) increased by 4% to $3.50. The company maintained a positive outlook, supported by strategic acquisitions and new product launches, despite challenges from Hurricanes Helene and Milton.

In terms of analyst views, Jefferies initiated coverage on LabCorp with a Buy rating and a price target of $275, highlighting the company's emergence from a period marked by significant challenges due to COVID-19 and the recent spinoff of Fortrea. Meanwhile, Baird revised its price target for LabCorp, reducing it to $286.00 from the previous target of $289.00, while maintaining an Outperform rating on the company's stock.

In other company news, LabCorp's Biomarker Testing Solutions (BLS) segment has been performing notably better than the trend seen in the Contract Research Organization (CRO) market. These are among the recent developments at LabCorp, a company that continues to navigate a complex market environment.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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