Quest Diagnostics (NYSE: DGX), a leading provider of diagnostic information services, recently announced the launch of its lab-developed molecular diagnostic test for the monkeypox virus.
In a release, the company said, “The polymerase chain reaction (PCR) test is the first commercially available test to be developed and made available by a national laboratory provider for helping in the qualitative detection and differentiation of monkeypox virus DNA from other non-variola orthopoxviruses.”
Quest Diagnostics expects to conduct around 30,000 monkeypox virus tests a week by the end of July. The company can also enhance its capacity for monkeypox testing across other laboratories in its national network if the demand is too high.
The launch of the test can be accretive to the company’s top-line numbers, given the rising cases of monkeypox globally. At least 10,857 monkeypox infections have been reported across the globe in just over two months, according to a report published by the Center for Infectious Disease Research and Policy (CIDRAP).
Spain, the United Kingdom, Germany, and the United States have reported the maximum number of cases. According to the CIDRAP report, the United States has reported 929 cases from 42 jurisdictions.
Meanwhile, Quest Diagnostics said that it was currently validating the Centers for Disease Control and Prevention’s (CDC) orthopoxvirus test, which it plans to provide to physicians in the first half of August.
Last month, Quest Diagnostics, along with four others, was selected to increase monkeypox virus testing capacity by using the CDC’s orthopoxvirus test.
Wall Street’s Take on DGX Stock
According to TipRanks, the Street has a Hold consensus rating on the stock, which is based on two Buys and 6 Holds. DGX’s average price forecast of $153.75 implies 15.5% upside potential. Shares of the company have declined 17.9% so far this year.
TipRanks data shows that financial bloggers are 90% Bullish on Quest Diagnostics, compared to the sector average of 71%. The news sentiment is also Positive for the stock. Further, hedge funds seem to be Very Positive. Per TipRanks, hedge funds bought 15,500 shares of DGX in the last quarter.
Quest Diagnostics to Get a Revenue Boost
Quest Diagnostics is progressing strongly to strengthen and expand its base business. Also, the company has launched the monkeypox test at an opportune time, as this move is expected to further boost the company’s revenues.
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