• Login
    • Join
  • FOLLOW:
  • Subscribe Free
    • Magazine
    • eNewsletter
    Checkout
    • Magazine
    • News
    • Opinions
    • Top 30
    • Research
    • Supply Chain
    • Device Sectors
    • Directory
    • Events
    • Resources
    • Microsites
    • More
  • Magazine
  • News
  • Opinions
  • Top 30
  • Research
  • Supply Chain
  • Device Sectors
  • Directory
  • Events
  • Resources
  • Microsites
  • Current / Back Issues
    Features
    Editorial
    Digital Edition
    eNewsletter Archive
    Our Team
    Editorial Guidelines
    Reprints
    Subscribe Now
    Advertise Now
    Top Features
    Pharmaceutical Focus: A Look at Combination Products

    The Printed World: Additive Manufacturing in Medtech

    The Lost Year: 2020 Year in Review

    Extrusion Evolution

    Little Big Parts: Micromolding Under the Microscope
    OEM News
    Supplier News
    Service / Press Releases
    Online Exclusives
    Press Releases
    People in the News
    Product & Service Releases
    Supplier News
    Medtech Makers
    Technical Features
    International News
    Videos
    Product & Service Releases
    Live From Shows
    Top News
    CHF Solutions Appoints CEO

    Freehand Partners with Imperial Medial Solutions

    Intersect ENT Announces CMS Approval of Coding Application for Sinus Implant

    Hillrom to Buy Bardy Diagnostics for $375M

    Global Tissue and Organ Transplantation Market to Surpass $25.6 Billion by 2027
    From the Editor
    Blogs
    Guest Opinions
    Top Opinions
    Pharmaceutical Focus: A Look at Combination Products

    The Printed World: Additive Manufacturing in Medtech

    The Lost Year: 2020 Year in Review

    Extrusion Evolution

    Little Big Parts: Micromolding Under the Microscope
    Top 30 Medical Device Companies
    Market Data
    White Papers
    Top Research
    Fixing Face Mask Form and Function

    The Heart of the Matter: Trends in Cardiology

    Virtually the Same? The Challenges of Online Conferences

    Digital Health Delivers During a Year for the Ages

    Advanced Technology for Staking and Swaging Medical Plastics
    3D/Additive Manufacturing
    Contract Manufacturing
    Electronics
    Machining & Laser Processing
    Materials
    Molding
    Packaging & Sterilization
    R&D & Design
    Software & IT
    Testing
    Tubing & Extrusion
    Cardiovascular
    Diagnostics
    Digital Health
    Neurological
    Patient Monitoring
    Surgical
    Orthopedics
    All Companies
    Categories
    Company Capabilities
    Add New Company
    Outsourcing Directory
    Element

    Medbio LLC

    FUTEK Advanced Sensor Technology Inc.

    Unicep

    Spectrum Plastics Group
    MPO Summit
    Industry Events
    Webinars
    Live From Show Event
    Industry Associations
    Videos
    Career Central
    eBook
    Slideshows
    Top Resources
    Meeting Critical Ventilator Product Requirements Amid Pandemic

    Impact of COVID-19 on the Medtech Supply Chain

    Finding the Upside to a Challenging Year

    Preparing Your Design Controls for FDA Approval

    A 'Trial and Error' Approach to Micromolded Parts
    Companies
    News Releases
    Product Releases
    Press Releases
    Product Spec Sheets
    Service Releases
    Case Studies
    White Papers
    Brochures
    Videos
    Outsourcing Directory
    Creganna Medical, part of TE Connectivity

    maxon

    Medbio LLC

    Qosina Corp.

    MW Life Sciences
    • Magazine
      • Current/Back Issues
      • Features
      • Editorial
      • Columns
      • Digital Editions
      • Subscribe Now
      • Advertise Now
    • News
    • Directory
      • All Companies
      • ALL CATEGORIES
      • Industry Associations
      • Company Capabilities
      • Add Your Company
    • Supply Chain
      • 3D/Additive Manufacturing
      • Contract Manufacturing
      • Electronics
      • Machining & Laser Processing
      • Materials
      • Molding
      • Packaging & Sterilization
      • R&D & Design
      • Software & IT
      • Testing
      • Tubing & Extrusion
    • Device Sectors
      • Cardiovascular
      • Diagnostics
      • Digital Health
      • Neurological
      • Patient Monitoring
      • Surgical
      • Orthopedics
    • Top 30 Company Report
    • Expert Insights
    • Slideshows
    • Videos
    • Podcasts
    • Resources
    • eBook
    • Infographics
    • Whitepapers
    • Research
      • White Papers
      • Case Studies
      • Product Spec Sheets
      • Market Data
    • MPO Summit
    • Events
      • Industry Events
      • Live From Show Events
      • Webinars
    • Microsite
      • Companies
      • Product Releases
      • Product Spec Sheets
      • Services
      • White Papers / Tech Papers
      • Press Releases
      • Videos
      • Literature / Brochures
      • Case Studies
    • About Us
      • About Us
      • Contact Us
      • Advertise with Us
      • eNewsletter Archive
      • Privacy Policy
      • Terms of Use
    Columns

    How COVID-19 is Reshaping the Diagnostics Testing Sector

    The short-term impact on the diagnostics sector is readily apparent as the pandemic has fueled overwhelming demand for effective SARS-CoV-2 testing solutions.

     How COVID-19 is Reshaping the Diagnostics Testing Sector
    Diagnostic Testing Price Index – One-Year Time Frame
     How COVID-19 is Reshaping the Diagnostics Testing Sector
    Capital IQ and Capstone Research
    Related CONTENT
    • Cognito Therapeutics’ Lead Product Receives FDA Breakthrough Device Designation
    • High-Volume COVID Antigen Test Receives FDA EUA
    • CMS Expedites Breakthrough Device Access; Industry Applauds
    • Unique Contact Lens Sensor System & Manufacturing Process Developed
    • Medtech Matters: Talking Robotic Surgery with Zimmer Biomet
    Eric Williams, Managing Director, Capstone Headwaters11.04.20
    The short-term impact on the diagnostics sector is readily apparent as the pandemic has fueled overwhelming demand for effective and rapid SARS-CoV-2 testing solutions. Testing represents a critical means to gauge and contain COVID-19’s spread, and estimates suggest approximately 30 million tests are needed weekly in the U.S. alone, according to The Rockefeller Foundation.1 The market has rewarded players that have bolstered testing capacity and developed innovative technology to support the fight against COVID-19. Valuations for a composite small to mid-sized player are up four-fold in the past 12 months while the likes of Abbott, Roche, BD, and Thermo Fisher Scientific are up an average of 30 percent. In addition, top public players including Quidel and QIAGEN have experienced year over year EBITDA multiple expansion of 75.1 percent and 41.2 percent, respectively.

    With the upcoming double threat of flu and COVID-19, a second wave hitting Europe, and the U.S. continuing to record 40,000-50,000 new daily cases, boosting testing capacity is paramount. Diagnostics players have sought to rapidly expand manufacturing capacity, presenting attractive opportunities for sophisticated contract manufacturing organizations (CMOs) to assist in scaling production. With more than 100 million cases of potential flu-like symptoms in the U.S. alone, it is critically important to rapidly differentiate between the pathogens for proper treatment and spread prevention. The application of diagnostic testing, specifically point-of-care, will be critical for enhancing disease detection, decision making and contagion containment. Hospitals’ point-of-care test use will be vital this flu season and perhaps for years to come to differentiate between influenza and SARS-CoV-2. Proper diagnosis is critical as hospitals attempt to avoid misdiagnosis and overcrowding, which threatens lives and overwhelms hospital capacity.

    Efforts to expand testing domestically and internationally have been hampered by supply challenges in securing reagents and even laboratory plastic consumables such as pipette and automation tips, storage tubes and plates, transfer pipettes, and packaging vials and bottles. Approximately 49 percent of laboratories alluded to supply sourcing as the biggest challenge during the pandemic, according to Medical Laboratory Observer.2 Notably, Quidel Corporation has had trouble procuring nasal foam swabs due to variable supply levels.3 Thermo Fisher Scientific is investing more than $140 million to expand production of its laboratory plastics consumables to meet global demand for COVID-19 testing and vaccine development/manufacturing.4 The company plans to add 1,000 jobs across its global manufacturing sites to address the need for applications including laboratory plastics, pipette and automation tips, storage tubes, and packaging vials and bottles. While reagent shortages have led to testing delays, it has also spurred innovation in the sector. For example, a number of companies are developing COVID-19 RNA extraction-less tests, which eliminates the need for expensive RNA extraction reagents as well as pipette and automation tips.

    CMOs have proved invaluable in efficiently scaling production. Notably, Co-Diagnostics has contracted Promega to provide additional manufacturing capacity for its Logix Smart COVID-19 test as it seeks to expand its outreach in public and private laboratories.5 Longhorn Vaccines and Diagnostics, which has developed the only available FDA-cleared microbial nucleic acid storage and stabilization device (PrimeStore MTM) to inactivate the coronavirus, has leveraged strong relationships with contract manufacturers such as EKF Diagnostics to meet unprecedented demand for its sample collection product.

    “We were eager to equip laboratories and point-of-care providers with PrimeStore MTM since it reduces the risk of infection to individuals involved in the collection, transfer, and testing processes,” Jeff Fischer, president of Longhorn Vaccines and Diagnostics, commented in a press release. “The device also stabilizes and preserves RNA at ambient temperatures eliminating the need for cold storage transport, simplifying lab procedures, and thus facilitating more reliable and accurate testing.” Longhorn Vaccines and Diagnostics recently launched PrimeStore ATM, an extractionless PCR solution that eliminates the need for extraction components.6

    Public Company Update
    Public companies in the Diagnostic Testing industry have capitalized on newfound demand for effective testing solutions, capturing unprecedented levels of revenue growth. Notably, Co-Diagnostics recorded a 1,503 percent revenue increase in Q2 due largely to sales of its Logix Smart COVID-19 test. Likewise, sales of Novacyt’s PCR COVID-19 test has contributed to a 900 percent revenue spike year-over-year. Other notable industry participants including QIAGEN and Quidel have recorded revenue increases of 16.2 percent and 86.4 percent, respectively.

    Companies have also used M&A to bolster their diagnostic platforms and expand into new markets. In September, QIAGEN acquired the remaining 80.1 percent stake in diagnostics instruments company NeuMoDx Molecular for $309.6 million. NeuMoDx is a molecular diagnostics solutions provider offering rapid, integrated PCR-based devices that provide assays for various infectious diseases. The company also developed a COVID-19 test that received FDA Emergency Use Authorization in late March. The deal highlights suitors’ appetite for technology that enables more rapid results, and automation that simplifies processes and increases testing throughput. “NeuMoDx’s automated molecular testing platforms offer a combination of speed, flexibility, throughput, and ease-of-use for molecular diagnostics assays, including laboratory-developed tests,” QIAGEN CEO Thierry Bernard said in announcing the transaction. “NeuMoDx has built a platform that has demonstrated superior value during the coronavirus pandemic. This will expand QIAGEN’s portfolio of automated testing solutions and provide another driver for future growth.”

    While COVID-19-related solutions are currently a priority, the pandemic has also highlighted the need for better surveillance tools for novel pathogens and improved methods for battling other infectious diseases. “The U.S. has been spared from the wrath of drug-resistant TB so far, but may no longer be that lucky. We need to prepare. We may start seeing strains that are atypical in the United States very soon,“ warned Faramarz Valafar, a professor at San Diego State University’s School of Public Health and a NIAID principal investigator.

    No one knows how long the pandemic will last, but many experts anticipate the coronavirus battle to extend well beyond 2021. “We may never eradicate the virus but simply control it via public health measures and medicine,” Dr. Anthony Fauci said. While vaccine development efforts have progressed at unprecedented speeds, there remains significant manufacturing challenges to large-scale production. In addition,  a substantial proportion of the public is skeptical about a vaccination—approximately 35 percent of Americans unwilling to receive a potential COVID-19 vaccine, according to Gallup.7 This reluctance is not just a U.S. phenomenon, as a University of Hamburg poll indicated that nearly 40 percent of Germans were unwilling to be vaccinated. Those amenable to a vaccination may have to wait due to manufacturing constraints, which could be exacerbated if multiple doses are required. Adar Poonawlaa, CEO of the Serum Institute of India (the world’s largest vaccine manufacturer) said it would take four to five years to vaccinate everyone on the planet.8 More disconcerting was a recent comment made by David Morens, virologist at the National Institute of Allergy and Infectious Diseases and senior advisor to Fauci, director of the NIAID: “Although we don’t know yet, it is well within the realm of possibility that this coronavirus, when our population-level immunity gets high enough, will find a way to get around our immunity. If that happened, we’d be in the same situation as with flu. We’ll have to chase the virus and, as it mutates, we’ll have to tinker with our vaccine.”9 

    References
    1. bit.ly/3e6M6rG
    2. bit.ly/3osKahV
    3. bit.ly/3oqVISR
    4. bit.ly/35Cee1L
    5. bit.ly/3mstR2y
    6. bit.ly/3jtOQ39
    7. bit.ly/31LshB1
    8. bit.ly/35DYsn1
    9. bit.ly/35DYBqz


    Eric Williams leads Capstone’s Health and Medical practice. Previously, he managed the Eastern region for Morgan Stanley Smith Barney’s Capital Strategies Group and its predecessor, Citi Capital Strategies. Eric has more than 20 years of experience managing strategic sale assignments and leveraged recapitalizations for owners of privately held companies. He has successfully completed over 100 transactions in a various subsectors including medical device, diagnostics, contract manufacturing, and pharmaceutical outsourcing. He is a Series 7 and 63 Registered Securities Representative as well as a Series 24 Registered Securities Principal.
    Related Searches
    • Diagnostics
    Related Knowledge Center
    • Diagnostics
    Suggested For You
    Medtech Matters: Medtronic Medtech Matters: Medtronic's Robotic Surgery Status
    Cognito Therapeutics’ Lead Product Receives FDA Breakthrough Device Designation Cognito Therapeutics’ Lead Product Receives FDA Breakthrough Device Designation
    High-Volume COVID Antigen Test Receives FDA EUA High-Volume COVID Antigen Test Receives FDA EUA
    CMS Expedites Breakthrough Device Access; Industry Applauds CMS Expedites Breakthrough Device Access; Industry Applauds
    Unique Contact Lens Sensor System & Manufacturing Process Developed Unique Contact Lens Sensor System & Manufacturing Process Developed
    Medtech Matters: Talking Robotic Surgery with Zimmer Biomet Medtech Matters: Talking Robotic Surgery with Zimmer Biomet
    CES News: Philips Highlights Healthcare at Home CES News: Philips Highlights Healthcare at Home
    Olympus and Hitachi Sign Five-Year Contract Olympus and Hitachi Sign Five-Year Contract
    CareDx Partners with IDbyDNA CareDx Partners with IDbyDNA
    Siemens Healthineers’ Laboratory-Based IL-6 Assay Receives EUA Siemens Healthineers’ Laboratory-Based IL-6 Assay Receives EUA
    Acutus Medical Launches AcQCross Transseptal System in Europe Acutus Medical Launches AcQCross Transseptal System in Europe
    Study Shows Lungpacer System Improves Diaphragm Strength by More Than 300 Percent Study Shows Lungpacer System Improves Diaphragm Strength by More Than 300 Percent
    Solvay Partners With PrinterPrezz on 3D Printing for Medical Devices Solvay Partners With PrinterPrezz on 3D Printing for Medical Devices
    New Clinical Trial Data Supports BD Libertas Wearable Injector as a Drug Delivery System New Clinical Trial Data Supports BD Libertas Wearable Injector as a Drug Delivery System
    Quantitative Transmission Ultrasound Outperforms Mammography Quantitative Transmission Ultrasound Outperforms Mammography

    Related Columns

    • Diagnostics
      A Breath of Fresh Air for COVID-19 Testing

      A Breath of Fresh Air for COVID-19 Testing

      One of the latest COVID-19 testing innovations has recently emerged from Israel’s Technion-Israel Institute of Technology—a coronavirus breath test.
      Sam Brusco, Associate Editor 09.01.20

    • Diagnostics
      ‘Pandemic Drone’ Spots COVID-19 Symptoms

      ‘Pandemic Drone’ Spots COVID-19 Symptoms

      About three months ago, drone-making company Draganfly began to strategize how drones might be able to help against COVID-19.
      Sam Brusco, Associate Editor 06.04.20

    • Diagnostics
      Gaining a Clearer Picture of Hitachi

      Gaining a Clearer Picture of Hitachi

      Diagnostic imaging is gaining the attention of many in healthcare as the technologies shrink in size and become available to those outside the hospital.
      Sean Fenske, Editor-in-Chief 04.01.20


    • Diagnostics
      From Genome Sequencing to the World’s First Portable MRI

      From Genome Sequencing to the World’s First Portable MRI

      Dr. Jonathan Rothberg has risen about as high as a scientist can, save for the Nobel Prize.
      Sam Brusco, Associate Editor 11.04.19

    • Diagnostics
      Elizabeth Holmes: The Making of a Pop Culture Icon

      Elizabeth Holmes: The Making of a Pop Culture Icon

      Despite keeping a relatively low profile this year (not by choice), Elizabeth Holmes’ celebrity status has continued to grow.
      Michael Barbella, Managing Editor 10.08.19

    • Cardiovascular | Diagnostics | Digital Health | Patient Monitoring
      Cardiac Care on the Can

      Cardiac Care on the Can

      ...
      Sam Brusco, Associate Editor 04.03.19


    • Diagnostics | Digital Health
      Google’s Search for Direction in Healthcare

      Google’s Search for Direction in Healthcare

      ...
      Michael Barbella, Managing Editor 03.07.19

    • Diagnostics | Materials | Patient Monitoring
      Diabetes Management and the Role of Adhesives

      Diabetes Management and the Role of Adhesives

      ...
      Del R. Lawson, Ph.D., R&D manager, Critical and Chronic Care Solutions Division, 3M 06.04.18

    • Diagnostics | Digital Health
      A Past Glimpse Into the Future

      A Past Glimpse Into the Future

      ...
      Michael Barbella, Managing Editor 06.04.18


    • Diagnostics
      Theranos: Not Long for the Business World?

      Theranos: Not Long for the Business World?

      ...
      Michael Barbella, Managing Editor 05.03.18

    • Diagnostics | R&D & Design
      Designing Diagnostic Consumables: Custom or Off-the-Shelf?

      Designing Diagnostic Consumables: Custom or Off-the-Shelf?

      ...
      Steve Maylish, Fusion Biotec, and Richard Spero, Redbud Labs 10.05.17

    • Diagnostics | Surgical
      Crash Test Dummies with Synthetic Beating Hearts

      Crash Test Dummies with Synthetic Beating Hearts

      ...
      Sam Brusco, Associate Editor 07.26.17


    • Cardiovascular | Diagnostics
      Changing Administrations and the Strategy for Value-Based Growth in Medtech

      Changing Administrations and the Strategy for Value-Based Growth in Medtech

      ...
      Maria Shepherd, Medi-Vantage 07.26.17

    • Diagnostics | Digital Health | Patient Monitoring
      Medical Auto-Pilot: Medtech’s Focus on Digital Therapeutics

      Medical Auto-Pilot: Medtech’s Focus on Digital Therapeutics

      ...
      Bryan Hughes, Director, P&M Corporate Finance 07.26.17

    • Diagnostics | Digital Health | Electronics | Patient Monitoring
      The Future of Medical Wearables

      The Future of Medical Wearables

      ...
      Mike Bolduc, Global Marketing Manager, Industrial and Medical Segments, C&K 06.06.17


    Trending
    • Philips Buys Capsule Technologies In $635M Deal
    • Cytotron Gains Breakthrough Status To Treat Breast, Liver, And Pancreatic Cancers
    • Top 10 Trends In The Medical Device And Equipment Industry
    • 5 Ways Plastics Revolutionized The Healthcare Industry
    • Portable, Home-Use Device Quickly Measures Inflammation Levels
    Breaking News
    • CHF Solutions Appoints CEO
    • Freehand Partners with Imperial Medial Solutions
    • Intersect ENT Announces CMS Approval of Coding Application for Sinus Implant
    • Hillrom to Buy Bardy Diagnostics for $375M
    • Global Tissue and Organ Transplantation Market to Surpass $25.6 Billion by 2027
    View Breaking News >
    CURRENT ISSUE

    November/December 2020

    • Pharmaceutical Focus: A Look at Combination Products
    • The Printed World: Additive Manufacturing in Medtech
    • The Lost Year: 2020 Year in Review
    • View More >

    Cookies help us to provide you with an excellent service. By using our website, you declare yourself in agreement with our use of cookies.
    You can obtain detailed information about the use of cookies on our website by clicking on "More information”.

    • About Us
    • Privacy Policy
    • Terms And Conditions
    • Contact Us

    follow us

    Subscribe
    Nutraceuticals World

    Latest Breaking News From Nutraceuticals World

    BGG Obtains U.S. Patent on AstaZine Natural Astaxanthin for Heart Function During Exercise
    Qualitas Health/iwi Raises $10 Million in Investment Round
    Aker BioMarine Expands Krill Portfolio with Novel Protein Hydrolysate
    Coatings World

    Latest Breaking News From Coatings World

    IGL Coatings Launches Graphene Reinforced Dual System Ceramic Coating
    Miller Paint Declares Simple Serenity its 2021 Color of the Year
    TAUBMANS Paint by PPG Releases ‘Chromatic Joy’ Palettes
    Medical Product Outsourcing

    Latest Breaking News From Medical Product Outsourcing

    CHF Solutions Appoints CEO
    Freehand Partners with Imperial Medial Solutions
    Intersect ENT Announces CMS Approval of Coding Application for Sinus Implant
    Contract Pharma

    Latest Breaking News From Contract Pharma

    Bone Therapeutics, Rigenerand Ink Cell Therapy Deal
    NovaQuest Private Equity Acquires CoreRx
    JS Bio and Etta Biotech Advancing Partnership
    Beauty Packaging

    Latest Breaking News From Beauty Packaging

    Marino Belotti Presents New Website
    Essence Cosmetics Expands in the U.S.
    Sigma Beauty Launches 'Brush Care' Sets at Sephora
    Happi

    Latest Breaking News From Happi

    Mix:Bar Launches at Target
    Crystal Deodorant Unveils Magnesium-Enriched Sticks
    Euromonitor Reveals Top 10 Global Consumer Trends for 2021
    Ink World

    Latest Breaking News From Ink World

    Cowan Graphics Adds Fujifilm Inca OnsetX3 HS
    Packaging Printing Market Worth $433.4 Billion by 2025: MarketsandMarkets
    O-I Foundation Gifts $50k to Facilitate COVID-19 Vaccine Access
    Label & Narrow Web

    Latest Breaking News From Label & Narrow Web

    Domino grows installation and service teams
    ABG keeps pace with demand with recruitment drive
    Acucote expands FSC-certified portfolio
    Nonwovens Industry

    Latest Breaking News From Nonwovens Industry

    Honeywell Delivered 225 Million Masks in December
    Techtextil, Texprocess Postponed to 2022
    Super Strong Inks Survive Tough Environments
    Orthopedic Design & Technology

    Latest Breaking News From Orthopedic Design & Technology

    Bioventus Appoints SVP of Operations
    DePuy Synthes Receives 510(k) FDA Clearance for VELYS Robotic-Assisted Solution
    OrthoPediatrics Expands Agent Network in Three European Countries
    Printed Electronics Now

    Latest Breaking News From Printed Electronics Now

    UDC Subsidiary Adesis' Website Wins 2020 MarCom Platinum Award
    Roadsimple Modernizes Warehouse Ops with Zebra Technologies
    Graphene Flagship Launches Redesigned Website

    Copyright © 2021 Rodman Media. All rights reserved. Use of this constitutes acceptance of our privacy policy The material on this site may not be reproduced, distributed, transmitted, or otherwise used, except with the prior written permission of Rodman Media.

    AD BLOCKER DETECTED

    Our website is made possible by displaying online advertisements to our visitors.
    Please consider supporting us by disabling your ad blocker.


    FREE SUBSCRIPTION Already a subscriber? Login