雅虎香港財經 Quest Diagnostics (DGX) Inks Deal to Acquire Allina Health
Quest Diagnostics DGX entered into a definitive agreement with Allina Health to acquire its select laboratory assets. The transaction is expected to be closed in the third quarter of 2024, subject to customary regulatory reviews.
The acquisition should help Quest Diagnostics expand its unique and cost-efficient laboratory services in Minneapolis and across Minnesota and western Wisconsin.
Financial terms of the deal were not disclosed.
More on the News
Under the terms of the agreement, Allina Health’s clinic physicians will have access to Quest Diagnostics’ laboratory services.
For investors’ note, Allina Health is a leading non-profit healthcare system. With this transaction, Allina Health can reinvest non-profit resources to support its commitment to providing quality and affordable laboratory services to different communities of people.
Strategic Implications of the Deal
The deal is expected to be strategically aligned as Quest Diagnostics and Allina Health share common interests like helping a range of communities benefit from quality, innovative, and affordable laboratory services.
According to Quest Diagnostics, this latest initiative is a part of the company’s strategy to generate growth through accretive laboratory acquisitions.
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Industry Prospects
Per a Grand View Research report, the global clinical laboratory services market was valued at $233.2 billion in 2023 and is anticipated to witness a CAGR of 3.5% by 2030. Primary factors influencing the market surge include the increasing burden of chronic diseases and the growing demand for early diagnostic tests. Along with these, rapid advancements in data management and sample preparation due to growing volumes of testing samples are expected to uplift market growth during the period.
Given the market potential, the deal is expected to benefit Quest Diagnostics' strategy for continuous growth through gradual laboratory acquisitions.
Other Recent Developments
Earlier this month, Quest Diagnostics completed the acquisition of PathAI to accelerate the adoption of digital and AI pathology innovations to improve quality, speed, and efficiency in diagnosing cancer and other diseases.
In April, the company announced the launch of a new blood biomarker test for phosphorylated tau 217. The test is associated with Alzheimer's Disease (AD). The test expands the AD-Detect portfolio of blood tests for assessing the risk of AD.
Price Performance
Year to date, shares of DGX have risen 0.5% compared with the industry’s 8.1% growth.
Zacks Rank and Key Picks
Quest Diagnostics currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader medical space are Hims & Hers Health, Inc. HIMS, The Joint Corp. JYNT, and Medpace Holdings MEDP. While Hims & Hers and The Joint currently sport a Zacks Rank #1 (Strong Buy) each, Medpace Holdings carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Hims & Hers Heath stock has surged 154.5% in the past year. Estimates for the company’s earnings have moved north by 5.6% to 19 cents for 2024 in the past 30 days.
HIMS’ earnings beat estimates in three of the trailing four quarters and missed in one, delivering an average surprise of 79.2%. In the last reported quarter, it posted an earnings surprise of a staggering 150%.
Estimates for The Joint’s 2024 earnings per share (EPS) have remained constant at 21 cents in the past 30 days. Shares of JYNT have surged 2.6% in the past year compared with the industry’s 6.4% growth.
In the last reported quarter, JYNT delivered an earnings surprise of 300%. It has a trailing four-quarter average earnings surprise of 18.75%.
Estimates for Medpace’s 2024 EPS have remained unchanged at $11.29 in the past 30 days. Shares of the company have surged 76.9% in the past year compared with the industry’s 6.4% growth.
MEDP’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 12.8%. In the last reported quarter, it delivered an earnings surprise of 30.6%.
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Quest Diagnostics Incorporated (DGX) : Free Stock Analysis Report
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