Quest Diagnostics (DGX) Introduces Mobile Phlebotomy Service
Quest Diagnostics Incorporated DGX recently launched Quest Mobile — which enables patients nationwide to have a specimen collected for laboratory testing more easily and conveniently. By the end of 2023, Quest Mobile's 5,000 skilled mobile phlebotomists will be operating in 44 states.
The latest development is likely to broaden Quest Diagnostics' laboratory services offering.
More on Quest Mobile
The Quest Mobile service will be accessible in 44 states and is based on the most easily accessible mobile collecting healthcare network in the United States. Patients can request an appointment for at-home specimen collection with a trained Quest Mobile phlebotomist for a broad range of laboratory tests in the comfort of their homes.
Patients will be required to pay a $55 mobile collection fee at the time of scheduling and Quest Mobile does not bill health insurance. The business is actively arranging commercial pricing with healthcare systems, health insurance and providers to remove the need for patients to pay out-of-pocket.
Significance of Latest Launch
Healthcare, particularly lab testing, is becoming more and more centered around the patient's choice and convenience. People may now get important testing services on their own schedules and from a reputable provider of quality and customer care by using Quest Mobile. The service is a manifestation of Quest Diagnostics’ approach to advance and leverage its scale and expertise to cater to the changing demands of its clientele, which encompasses a growing need for at-home care services.
Quest Diagnostics’ network of 5,000 trained mobile phlebotomists is believed to be the largest in the industry. The new service complements the company's current service options, which include online appointment scheduling and walk-in visits at one of Quest's 2,100 patient service centers and in-office phlebotomy at some health provider sites.
With the launch of Quest Mobile, the company can offer patients and physicians a seamless connection to Quest Diagnostic's laboratory testing, allowing them to work together for a healthier world — one life at a time.
Industry Prospects
Per a report by Grand View Research, the global clinical laboratory service market size was estimated at $217.53 billion in 2022 and is expected to expand at a CAGR of 3.2% from 2023 to 2030. The industry is witnessing growth due to factors such as the increasing burden of chronic diseases and the growing demand for early diagnostic tests.
Progress Within Laboratory Business
In October 2023, Quest Diagnostics inked a strategic lab services agreement with Neway. The agreement aims to accelerate dialysis laboratory testing and reduce the laboratory costs of dialysis programs for patients with end-stage renal disease (ESRD).
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The same month, Quest Diagnostics was granted FDA Breakthrough Device Designation for its adeno-associated virus called AAV companion diagnostic (CDx), developed in collaboration with Sarepta Therapeutics for the Duchenne muscular dystrophy gene therapy. Per terms of the agreement, Diadem has licensed exclusive U.S. rights to the intellectual property of its AlzoSure Predict blood-based prognostic technology to Quest Diagnostics for the purpose of developing, validating and marketing a laboratory-developed test service for providers and patients in the United States.
Price Performance
In the past year, shares of DGX have declined 11.7% compared with the industry’s 3.2% fall.
Zacks Rank and Other Key Picks
Quest Diagnostics currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader medical space that have announced quarterly results are Abbott Laboratories ABT, DexCom, Inc. DXCM and Integer Holdings Corporation ITGR.
Abbott, carrying a Zacks Rank of 2 (Buy), reported adjusted EPS of $1.14 in third-quarter 2023, beating the Zacks Consensus Estimate by 3.6%. Revenues of $10.14 billion outpaced the consensus mark by 3.6%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Abbott has a long-term estimated growth rate of 5.1%. ABT’s earnings surpassed estimates in all the trailing four quarters, the average surprise being 6.8%.
DexCom reported third-quarter 2023 adjusted EPS of 50 cents, beating the Zacks Consensus Estimate by 47.1%. Revenues of $975 million surpassed the Zacks Consensus Estimate by 4%. It currently carries a Zacks Rank #2.
DexCom has a long-term estimated growth rate of 33.6%. DXCM’s earnings surpassed estimates in all the trailing four quarters, the average surprise being 36.4%.
Integer Holdings reported adjusted EPS of $1.27 in third-quarter 2023, beating the Zacks Consensus Estimate by 20.9%. Revenues of $404.7 million surpassed the Zacks Consensus Estimate by 8.7%. It currently carries a Zacks Rank #2.
Integer Holdings has a long-term estimated growth rate of 15.8%. ITGR’s earnings surpassed estimates in all the trailing four quarters, the average surprise being 11.9%.
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