Laboratory Corporation of America Holdings, Inc. or Labcorp LH recently highlighted results from two studies at the 2024 SGO Annual Meeting on Women's Cancer. The trials demonstrate how biomarker testing can help close testing gaps and guide tailored therapy for patients with epithelial ovarian cancer (EOC).
With the rapid identification of cancer biomarkers and the development of new targeted medicines, thorough testing procedures are becoming increasingly important as treatment guidelines advance. Labcorp researchers conducted two studies to provide additional evidence of the utility of complete genetic profiling in driving guideline-compliant testing, which increases patient access to targeted medicines for better results.
Study Details
In the first study, undertaken in collaboration with Illumina, 1,093 EOC patients were assessed to determine real-world clinical practice trends for ordering BRCA and Homologous Recombination Deficiency (HRD) testing.
When BRCA and HRD testing results are combined, it is possible to predict which patients will benefit the most from poly-ADP ribose polymerase (PARP) inhibitor medication. For patients who test negative for BRCA1 and BRCA2, testing for HRD can assist in evaluating the level of benefit with a PARP inhibitor.
In another study, Labcorp researchers analyzed real-world testing practice patterns for Folate-receptor Alpha on primary tumors versus metastatic tumors to recommend targeted therapy for patients with platinum-resistant EOC.
Folate-receptor Alpha, an actionable biomarker in ovarian cancer, is overexpressed in up to 90% of EOC patients. Platinum-resistant EOC and strong Folate-receptor Alpha tumor expression patients may benefit from Mirvetuximab soravtansine (MIRV), a targeted medication that improves overall survival.
Study Highlights
This study highlights the need for thorough biomarker testing in furthering the treatment of ovarian cancer. These findings confirm that access to modern technology, combined with collaboration with partners who share a dedication to the most recent care models, provides the foundation for developing breakthrough diagnostic tools.
These novel assays can provide more patients with access to effective, biomarker-guided therapy, resulting in better prognoses and opening doors to new possibilities in gynecologic oncology.
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This study emphasizes the need for more healthcare provider education on comprehensive genomic techniques and the therapeutic value of guideline-driven testing to improve patient care in ovarian cancer.
Industry Prospects
Per Precedence Research, the global cancer diagnostics market size was estimated at $132 billion in 2022 and is expected to reach around $305.39 billion by 2032, poised to grow at a CAGR of 8.8% during the forecast period from 2023 to 2032. Increasing number of cancer patients across the world is one of the major driving factors promoting the growth of the cancer diagnostics market.
Progress Within Cancer Diagnostics Offering
In 2023, the company forged a partnership with ImmunoGen on an immunohistochemistry-sponsored testing program to increase access for patients with ovarian cancer. Labcorp added HER2 low reporting to the IC test, which is the only FDA-approved companion diagnostic of HER2 status for patients with metastatic breast cancer.
In addition, the company is investing in innovation and technology that supports diagnostic and drug development testing for various diseases such as cancer and Alzheimer’s. Labcorp is the first company to nationally avail of an ATN profile. This blood-based test combines three well-researched blood biomarkers to identify and assess biological changes associated with Alzheimer's disease, Amyloid-Tau Alzheimer's and neurodegeneration targeted for patients who are being evaluated from mild dementia.
Price Performance
In the past year, LH’s shares have gained 13.4% compared with the industry’s rise of 17.9%.
Zacks Rank and Key Picks
Labcorp currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks from the broader medical space are Stryker Corporation SYK, Cencora, Inc. COR and Cardinal Health CAH.
Stryker, carrying a Zacks Rank #2 (Buy), reported a fourth-quarter 2023 adjusted EPS of $3.46, beating the Zacks Consensus Estimate by 5.8%. Revenues of $5.8 billion outpaced the consensus estimate by 3.8%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Stryker has an estimated earnings growth rate of 11.5% for 2025 compared with the S&P 500’s 9.9%. The company’s earnings surpassed estimates in each of the trailing four quarters, the average being 5.1%.
Cencora, carrying a Zacks Rank #2, reported a first-quarter fiscal 2024 adjusted EPS of $3.28, which beat the Zacks Consensus Estimate by 14.7%. Revenues of $72.3 billion outpaced the Zacks Consensus Estimate by 5.1%.
COR has an earnings yield of 5.75% compared with the industry’s 1.85%. The company’s earnings surpassed estimates in each of the trailing four quarters, the average being 6.7%.
Cardinal Health, carrying a Zacks Rank #2, reported second-quarter fiscal 2024 adjusted earnings of $1.82, which beat the Zacks Consensus Estimate by 16.7%. Revenues of $57.45 billion improved 11.6% on a year-over-year basis and also topped the Zacks Consensus Estimate by 1.1%.
CAH has a long-term estimated earnings growth rate of 15.3% compared with the industry’s 11.8% growth. The company’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 15.6%.
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