Quest Diagnostics' (DGX) New Pact to Scale Precision Medicine
Quest Diagnostics Incorporated DGX entered into a multi-pronged collaboration with Scipher Medicine intended to expand patient access to diagnostic services, advancing precision medicine for rheumatoid arthritis (RA). The collaboration leverages Quest Diagnostics’ sequencing and specimen collection expertise with Scipher's precision medicine technology.
Using an analysis of molecular profiles, Scipher's PrismRA test determines which RA patients are unlikely to benefit from TNF medications. The PrismRA test helps identify patients who can be provided an effective alternative therapy to save needless drug cycles or dose escalations by evaluating their molecular signature.
More on Collaboration
As part of a multi-year partnership, Quest Diagnostics will supply next-generation sequencing and enhanced RNA extraction services for Scipher's PrismRA test. The test is called a blood-based molecular signature response classifier (MSRC). Its goal is to predict how a patient will react to medication consisting of TNF inhibitors (TNFi), which is frequently recommended for RA patients.
Quest Diagnostics will facilitate courier logistics services, which include patient specimen transportation between Quest Diagnostics and Scipher laboratories and provider sites.
The collaboration focuses on Quest Diagnostics' advanced laboratory in Marlborough, Massachusetts, which has next-generation sequencing capabilities. Quest Diagnostics will extract and sequence RNA from PrismRA blood specimens to uncover about two dozen molecular features related to TNFi therapy response.
Strategic Efforts
The PrismRA is a breakthrough in RA precision medicine diagnostics because it helps enable the early, personalized treatment so critical to favorable outcomes for this often-disabling disease. Through its collaboration with Scipher, Quest Diagnostics extends its capabilities in autoimmune diagnostic services, including services to aid clinical decisions with biologics.
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The collaboration with Scipher supports Quest Diagnostics' genomics strategy and investments, particularly in next-generation sequencing and scale in blood-specimen logistics. Quest Diagnostics is enabling clinical innovators like Scipher to realize the potential of precision medicine to treat huge, underserved patient populations by providing these distinct assets.
Industry Prospects
Per a report by Precedence Research, the global precision medicine market size was valued at $73.49 billion in 2022 and is expected to reach $175.64 billion by 2030 at a CAGR of 11.5% by 2030.
Increased adoption of emerging genomic technologies, such as NGS and high-density microarray, coupled with favorable government initiatives, is expected to fuel the global gene therapy market and, in consequence, the precision medicine market.
Recent Developments
In November 2023, Quest Diagnostics entered into a strategic collaboration with Universal DX (UDX) aimed to advance colorectal cancer screening in the United States, for which over 110 million people may be eligible. The partnership intends to bring together Quest's national scale and experience in the United States along with UDX's cutting-edge liquid biopsy screening technology. This includes nearly 2,100 patient service centers for blood draws, extensive connectivity between health plans and electronic health records and more.
In July 2023, Quest Diagnostics launched a novel prostate cancer biomarker test through its subspecialty pathology business unit, AmeriPath. The laboratory test is developed in collaboration with Envision Sciences — an Australia-based clinical diagnostics company with a focus on oncology diagnostics and prognostics in tissue and blood.
Price Performance
In the past year, DGX’s shares have declined 10.6% against the industry’s rise of 1.9%.
Zacks Rank and Key Picks
Quest Diagnostics carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader medical space are Haemonetics HAE, Insulet PODD and DexCom DXCM. While Haemonetics and DexCom carry a Zacks Rank #2 (Buy), Insulet sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
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