BERKELEY, Calif. and MAINZ, Germany - Mainz Biomed N.V. (NASDAQ:MYNZ), a molecular genetics diagnostic company, has entered into an agreement with Quest Diagnostics (NYSE:DGX), a prominent healthcare provider with a market capitalization of $16.9 billion and annual revenue exceeding $9.5 billion, to support the ReconAAsense study and potentially commercialize its ColoAlert test, pending FDA approval. According to InvestingPro analysis, Quest maintains a strong financial health score, positioning it well for strategic partnerships. The ColoAlert test, which utilizes polymerase chain reaction (PCR) technology to detect colorectal cancer DNA in stool samples, aims to provide an early detection method for the disease.
The partnership will involve Quest providing laboratory services for Mainz Biomed's upcoming clinical trial, which is set to include around 15,000 subjects from 150 sites across the United States. The study is designed to gather data for FDA validation of the ColoAlert test. Quest has also been granted the option to semi-exclusively offer the test for eighteen months after FDA approval. Quest's stable market position, evidenced by its low price volatility and 13 consecutive years of dividend increases, makes it an attractive partner for such initiatives.
Colorectal cancer is the third most common cancer worldwide, with over 1.9 million new cases in 2020. Screening is recommended to start at age 45, yet approximately one-third of Americans aged 50-75 have never been screened, representing a significant market opportunity. The ColoAlert test could help close this screening gap.
Guido Baechler, CEO of Mainz Biomed, expressed enthusiasm about the collaboration with Quest, citing their expertise in scaling cancer diagnostics. Mainz Biomed's ColoAlert is already available in Europe and the UAE, and the company is expanding its portfolio with PancAlert, a test for early-stage pancreatic cancer.
This news is based on a press release statement and reflects the current information available. Mainz Biomed's SEC filings can be accessed for further details on their initiatives and the risks involved in forward-looking statements. For comprehensive analysis of Quest Diagnostics' financial metrics and additional ProTips, investors can access the detailed Pro Research Report available on InvestingPro, which covers over 1,400 US equities with expert insights and actionable intelligence.
In other recent news, Quest Diagnostics has received an upgrade from Morgan Stanley (NYSE:MS), reflecting confidence in the company's growth prospects. The firm raised the stock from Equalweight to Overweight and increased the price target to $172. This decision aligns with Quest Diagnostics' long-term targets that include approximately 3% organic top-line growth and high-single-digit percentage earnings growth.
Moreover, Jefferies initiated coverage on Quest Diagnostics with a Buy rating, setting a price target of $185. The firm highlighted the company's ability to secure new contracts and its sustained mid-single-digit revenue growth through 2026. The company's growth strategy includes mergers and acquisitions, contributing to over 2% growth through acquisitions by around 2026.
Baird, another financial services firm, reduced the stock price target slightly to $181 from $182, but reiterated an Outperform rating. Baird anticipates catalysts in 2025 that could boost Quest Diagnostics' performance, including a quicker benefit from the integration of LifeLabs and reduction in the dilutive impact of Haystack.
Leerink Partners increased their price target on Quest Diagnostics to $165 from $160, reflecting a valuation of approximately 17 times the firm's calendar year 2025 earnings per share estimate. The firm noted that while the company is dealing with persistent wage inflation and lower-margin deals, the potential for upside catalysts is largely reflected in the current stock price.
In terms of company news, Quest Diagnostics has been awarded contracts by the U.S. Centers for Disease Control and Prevention (CDC) to enhance preparedness for avian influenza and Oropouche viruses. These recent developments reflect the company's ongoing growth and potential for further expansion.
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