Bio-Rad Laboratories, Inc. BIO announced the launch of SARS CoV-2 Standard to support the laboratory assay authentication of testing for coronavirus (COVID-19) as well as accelerate the access to testing. Notably, the SARS CoV-2 Standard was launched through the company’s Exact Diagnostics product line.
Notably, per the federal regulatory standards of the Clinical Laboratory Improvement Amendments (“CLIA”), it is mandatory for clinical laboratories to establish and document their performance specifications for laboratory-developed tests. This is to ensure the accuracy and preciseness of results before the test is implemented.
With the recent launch through the Exact Diagnostics product line, Bio-Rad aims to strengthen its Clinical Diagnostics business globally.
Significance of the Launch
Per the company, the launch of the SARS CoV-2 Standard is significant as it helps more laboratories to keep pace with the rising demand for coronavirus testing. During a public health emergency such as the current outbreak, Bio-Rad believes that it is imperative that more laboratories have access to well-defined standards for the validation of their tests.
Per a report by Grand View Research, the global in vitro diagnostics (IVD) market size was valued at $60.8 billion in 2019 and is expected to expand, witnessing CAGR of 4.4%, between 2020 and 2027. Factors like the growing adoption of fully automated instruments, automation in laboratories and increasing adoption of point-of-care testing are likely to drive the market.
Developments in Clinical Diagnostics
In fourth-quarter 2019, Bio-Rad registered robust growth in the Clinical Diagnostics business, with solid results in Quality Controls, Diabetes, Autoimmune and Blood Typing product lines. Geographically, Asia and the Americas posted impressive revenue results.
Shares of Bio-Rad have gained 2.6% in the past year against the industry’s 13.1% decline.
Zacks Rank & Stocks to Consider
Currently, the company carries a Zacks Rank #4 (Sell).
Some better-ranked stocks from the broader medical space are ResMed Inc. RMD, Medtronic plc MDT and Hill-Rom Holdings, Inc. HRC.
ResMed has a projected long-term earnings growth rate of 14.1%. It currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Medtronic’s long-term earnings growth rate is estimated at 7.4%. The company presently has a Zacks Rank #2.
Hill-Rom’s long-term earnings growth rate is estimated at 11.1%. It currently carries a Zacks Rank #2.
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Medtronic PLC (MDT) : Free Stock Analysis Report
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