Yahoo Finance Agilent (A) to Boost Digital Pathology Reach With Proscia Deal
Agilent Technologies A signs a multi-year distribution agreement with Proscia in a bid to deliver advanced digital diagnostic pathology solutions to the pathologists.
Per the agreement, Agilent will help in accelerating data-driven precision medicine for pathologists, laboratories and patients through the partnership with Proscia, which is a well-known player in the digital pathology space.
As a part of this, Agilent’s pathology staining solutions will be combined with Proscia’s enterprise pathology platform, called Concentriq Dx, which offers a pathologist-centric user experience in viewing, managing and analyzing images.
The combination of solutions from both companies will enable pathology labs to improve patient health outcomes by bolstering diagnostic efficiency and quality with the help of precision medicines.
Hence, the latest move is likely to drive Agilent’s momentum across pathologists. The company will be able to deliver solutions that enable pathologists to streamline and leverage the results of their image analysis seamlessly.
Agilent Technologies, Inc. Price and Consensus
Agilent Technologies, Inc. price-consensus-chart | Agilent Technologies, Inc. Quote
Growth Prospects
The Proscia partnership is likely to aid Agilent in expanding its footprint in the digital pathology space.
According to a report from MarketsandMarkets, the global digital pathology market is expected to hit $1.4 billion by 2026, registering a CAGR of 13.2% over a period of 2022-2026.
In addition, the latest move positions Agilent well to capitalize on the growth prospects present in the precision medicine market.
According to a report from Mordor Intelligence, the global market for precision medicine is expected to witness a CAGR of 9.2% between 2023 and 2028.
A Precedence Market Research report indicates that the market is expected to reach $175.6 billion by 2030, witnessing a CAGR of 11.5% between 2022 and 2030.
Per a Market Research Future, the precision medicine market is anticipated to hit $126.24 billion by 2030, registering a CAGR of 12.5% between 2022 and 2030.
We believe Agilent’s solid prospects in these promising markets are expected to aid it in winning investors’ confidence in the days ahead.
Coming to the price performance, Agilent has gained 4.2% over the last year, outperforming the industry’s growth of 3.8%.
DGG Segment in Focus
Notably, the latest distribution agreement with Proscia is in sync with Agilent’s growing efforts toward strengthening its Diagnostics and Genomics Group (DGG) segment.
Apart from the latest move, the company recently received approval for its Resolution ctDx FIRST from the U.S. Food and Drug Administration (FDA). The approval is about utilizing ctDx FIRST as a companion diagnostic (CDx) in the identification of advanced non-small cell lung cancer (NSCLC) patients with KRAS G12C mutations.
The approval positioned Agilent well to gain momentum in the genomic profiling space as ctDX FIRST uses a minimally invasive approach, which is preferred by 90% of cancer patients.
Further, the ctDX FIRST places the company well to gain traction among the oncologists dealing with patients suffering from lung cancer, which has become one of the most prevalent cancers.
In addition, the company’s recent acquisition of Avida Biomed, which develops high-performance target enrichment workflows to aid clinical researchers using next-generation sequencing approaches in studying cancer, significantly strengthened the underlined segment's offerings.
We believe all these endeavors are likely to drive growth in the DGG segment in the near term.
In first-quarter fiscal 2023, DGG generated revenues of $342 million, which accounted for 19% of total revenues and were up 1% year over year on a reported basis.
Zacks Rank & Other Stocks to Consider
Currently, Agilent carries a Zacks Rank #2 (Buy).
Some other top-ranked stocks in the broader technology sector are Arista Networks ANET, Salesforce CRM and Analog Devices ADI. While Arista Networks and Salesforce sport a Zacks Rank #1 (Strong Buy), Analog Devices carries a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Arista Networks shares have gained 23% in the past year. The long-term earnings growth rate for ANET is currently projected at 14.17%.
Salesforce shares have lost 12.1% in the past year. CRM’s long-term earnings growth rate is currently projected at 16.75%.
Analog Devices shares have gained 21.9% in the past year. The long-term earnings growth rate for ADI is currently projected at 12.25%.
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