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Abbott (ABT) Gains CE Mark for Quantitative Serology Testing

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Abbott Laboratories (ABT - Free Report) recently achieved a major landmark with regard to its COVID-19 antibody testing. The company gained CE Mark for its new quantitative SARS-CoV-2 IgG (Immunoglobulin G) lab-based serology test in Europe.

According to the company, quantitative antibody testing (measuring the amount of antibodies) like this can help provide greater understanding of a person's immune response.

The Test at a Glance

The SARS-CoV-2 IgG II Quant antibody test measures levels of IgG antibodies that are attached to the virus' spike protein. This test while providing important insights into COVID-19 recovered patients’ health also helps in evaluating a person's immune response to a vaccine.

The test will be used on Abbott's ARCHITECT and Alinity i platforms.

In this regard, we note that in April, the company launched its first COVID-19 IgG antibody blood test that detects the nucleocapsid protein of the virus. This is a qualitative test that provides better understanding of people's immune response to the virus, including potential duration of the recovery process.

 

The latest quantitative antibody test however is superior as it additionally determines both the presence and level (or titer) of antibodies present in the blood.

Strategic Imperative

As COVID-19 vaccine approvals and distributions are just a matter of time around the world, this latest development from Abbott seems to be well timed and strategic. This latest test is expected to gain huge market acceptance in Europe, particularly in parts where vaccine rollout is likely to begin in a few weeks.

The test is expected to be submitted for FDA’s Emergency Use Authorization (EUA) soon.

Abbott's COVID-19 Testing Portfolio at a Glance

Abbott's COVID-19 test portfolio includes molecular, antigen and serology tests.

In October, the company announced the receipt of EUA for its AdviseDx SARS-CoV-2 IgM (Immunoglobulin M) lab-based serology test. This is the second antibody test offered by Abbott after its launch of its IgG antibody test in April.

Molecular testing, which detects if someone currently has the virus, was in high demand during the early phase of COVID-19. In March, the company launched two COVID-19 tests — the ID NOW COVID-19 molecular test (the fastest available molecular point-of-care test delivering results within 13 minutes and positive results in five minutes) and the RealTime SARS-CoV-2 molecular test, which runs on Abbott's m2000 RealTime System located in hospitals and reference laboratories.

In terms of antigen test, in the last-reported third-quarter 2020, the company launched BinaxNOW rapid antigen test, which can detect COVID-19 infection in just 15 minutes with no instrument required.

Price Performance

Shares of the company have gained 23.4% in the past year compared with the industry’s 1.8% rise.

Zacks Rank and Key Picks

Currently, Abbott carries a Zacks Rank #3 (Hold).

Some better-ranked stocks from the broader medical space are Hologic (HOLX - Free Report) , Thermo Fisher Scientific (TMO - Free Report) and ResMed (RMD - Free Report) .

Hologic’s long-term earnings growth rate is estimated at 17.4%. The company presently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Thermo Fisher’s long-term earnings growth rate is estimated at 18%. It currently carries a Zacks Rank #2 (Buy).

ResMed’s long-term earnings growth rate is estimated at 14.5%. The company presently carries a Zacks Rank #2.

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