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Luminex (LMNX) Receives EUA for Coronavirus Detection Test

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Luminex Corporation LMNX recently announced that it has received Emergency Use Authorization (EUA) from the FDA for its NxTAG CoV Extended Panel that will be used to detect the SARS-CoV-2 virus. Now, high-complexity molecular laboratories can utilize the NxTAG test on Luminex’s easy-to-use, compact MAGPIX System, which will help detect the virus causing COVID-19 for up to 96 patients in about 4 hours.

Notably, Luminex has been lending support to laboratories in the United States, Asia and Europe with its testing, while expanding manufacturing capacity to produce up to 300,000 NxTAG tests per month, with the maximum capacity focused on SARS-CoV-2.

For investors’ notice, the NxTAG Respiratory Pathogen Panel (RPP) is a next generation closed tube, molecular assay with an all-inclusive coverage created to enhance laboratory workflow. This will enable a laboratory to simultaneously detect 20 respiratory pathogens, accommodating the higher throughput necessary to respond to changes on demand. In fact, in order to get a thorough insight into a patient’s respiratory health, the NxTAG CoV Extended Panel can be run in parallel with the NxTAG RPP.

With this development, Luminex is likely to boost the molecular diagnostics platform and strengthen presence in the global infectious disease diagnostics market.

Significance of the Approval

Luminex has been partnering with customers at clinical laboratories to address the global pandemic caused by the coronavirus outbreak. The company has been offering quick, reliable, scalable, multiplexed tests that can help combat the spread of COVID-19 disease and at the same time, making sure that the tests are cost-effective.

Per management, Luminex is the only company that has been offering tests that can detect as well as differentiate between SARS-CoV-2 and other common respiratory infections. Additionally, the company has ensured that the tests are affordable for customers and the healthcare system by keeping price below government reimbursement levels.

Coronavirus Outbreak and Impact

Coronavirus, which was first detected in central China in December, has turned into a full-blown pandemic, and its panoptic impact has left most of the world rattled and shocked. In fact, more than 137,200 people across the United States have been infected with the novel coronavirus, with more than 2,400 losing their lives.

Amid this crisis, some key players have made significant progress with regard to testing in order to check the spread of the pandemic.

For example, Becton, Dickinson and Company BDX, also known as BD, together with CerTest Biotec, recently announced the receipt of CE mark for the VIASURE SARS-CoV-2 real time test adapted for the BD MAX System. With this move, the polymerase chain reaction test for COVID-19 detection is now available in clinical laboratories.

Also, Abbott Laboratories ABT announced the receipt of the EUA from the FDA to use its molecular test RealTime SARS-CoV-2 EUA to detect the novel coronavirus. Notably, the test will run on the company’s m2000 RealTime System. Abbott is on track to ship 150,000 RealTime SARS-CoV-2 EUA tests to existing customers in the United States. At the same time, the company will coordinate with health systems and government authorities to supply additional m2000 systems per requirement.

Market Prospects

Per a report published on Grand View Research, the global molecular diagnostics market was valued at $9.2 billion in 2019 and is expected to reach $18.2 billion by 2027, witnessing a CAGR of 9% between 2020 and 2027. Factors like technological advancements in molecular diagnostics and the rising prevalence of infectious diseases are likely to drive the market.

Hence, the latest development has been a well-timed one for Luminex.

Price Performance

Over the past year, shares of this Zacks Rank #2 (Buy) company have gained 16.1% against the industry’s 13.8% decline.

Another Key Pick

Another top-ranked stock from the broader medical space is The Cooper Companies, Inc. COO, which currently carries a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Cooper Companies has a projected long-term earnings growth rate of 10.8%.

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