In an effort to expand in the growing companion diagnostics market, Dako, an Agilent Technologies (A) subsidiary, recently entered into a strategic partnership with Cell Signaling Technology to develop antibodies in the field of companion diagnostics for cancer-fighting drugs. Financial terms of the deal have not been disclosed.
Agilent acquired the Danish cancer diagnostics company, Dako, for $2.2 billion (on a debt-free basis), in 2012. Dako supplies antibodies, scientific instruments and software mainly to cancer-related diagnostic labs. It also collaborates with drug companies for developing methods to identify patients who are likely to benefit from certain therapies.
Currently, the healthcare sector is witnessing a revolution and companion diagnostics or personalized medicine is taking the center stage. It has been found that not all treatments are suitable for patients suffering from a specific disease as some require more specialized tests.
The advancement in companion diagnostics could be far-reaching effects on the entire healthcare system, as personalized medicine has a long way to go in improving patient care and reducing medical bills.
Agilent has signed many more collaborative agreements with pharma and biotech companies including Pfizer (PFE), AstraZeneca (AZN), Bristol-MyersSquibb, Merck & Co. (MRK), Amgen and Eli Lilly on companion diagnostics for the treatment of cancers and other diseases.
According to the Global Industry Analysts, the companion diagnostics market may reach $280.2 million globally by 2017, driven by the enhancement of a drug’s clinical usage, thus reducing the overall cost and risk involved in drug development and commercialization.
Agilent’s fiscal fourth-quarter 2014 earnings per share of 88 cents beat the Zacks Consensus Estimate by a significant 38 cents. Revenues of $1.81 billion were up 2.2% sequentially and 5.1% year over year. Life Sciences and Diagnostics Group revenues were up 3.4% sequentially driven by strong performance in the pharma and diagnostics/clinical markets.
Currently, Agilent Technologies has a Zacks Rank #3 (Hold).
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