Monday, April 29, 2024

FDA LDT Rule: Quest, Labcorp Stocks Pop Up to 5%

The release of the final FDA regulation for reviewing and controlling LDT tests was released on April 29, 2024.  (Story here).

LabCorp and Quest reacted favorably.

Quest opened at $135 and popped as high as $142 before settling to a 4% gain. 

LapCorp opened at $200 and popped as high as 142 before settling to a 3% gain.

The two labs have a market cap of about $15b (Q) and $17B (L), so a 4% gain represents about $1.2B of market value across both.

For scale, LabCorp's range today was well inside its 365-day range of $180 to $230.

Guardant and Natera were each up several percent.  Exact Sciences floated up a couple percent but ended the day flat.  CareDx was up 8%, perhaps reflecting its experience with FDA approvals.