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Agilent (A) Boosts Reach to Biopharma Researchers With PathAI
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Agilent Technologies (A - Free Report) joined forces with PathAI in a bid to introduce an end-to-end solution for AI-powered assay development.
Both Agilent and PathAI, which offers AI-powered research tools and services for pathology, strive to bolster their precision medicine efforts through this deal.
The new solution integrates the assay development expertise of Agilent with PathAI’s algorithm development capabilities. The new AI-powered CDx assay development offering will likely cater well to the needs of biopharma companies.
Both companies have developed a digital pathology software solution, namely AISight, to accelerate the deployment of AI-driven assays.
We note that the latest move is likely to drive Agilent’s momentum among biopharma researchers and clinical application developers.
The PathAI partnership is likely to aid Agilent in gaining traction across the translational medicine and diagnostic solutions markets.
The latest move positions Agilent well to capitalize on the growth prospects present in the precision medicine market.
Per a report from Mordor Intelligence, the global market for precision medicine is expected to witness a CAGR of 9.2% between 2023 and 2028.
A Precedence Market Research report indicates that the market is expected to reach $175.6 billion by 2030, witnessing a CAGR of 11.5% between 2022 and 2030.
The latest deal will likely expand Agilent’s footprint in the digital pathology space.
Per a report from MarketsandMarkets, the global digital pathology market is expected to hit $1.4 billion by 2026, seeing a CAGR of 13.2% throughout 2022-2026.
We believe Agilent’s solid prospects in these promising markets will likely continue to aid it in winning investors’ confidence in the days ahead.
Agilent gained 7.9% over the last year, outperforming the industry’s growth of 2.8%.
Strengthening DGG Segment
The latest deal with PathAI is in sync with Agilent’s growing efforts toward strengthening its Diagnostics and Genomics Group (DGG) segment.
The company recently signed a multi-year distribution agreement with Proscia to deliver advanced digital diagnostic pathology solutions to pathologists.
Per the partnership terms, Agilent’s pathology staining solutions will be combined with Proscia’s enterprise pathology platform, called Concentriq Dx, which offers a pathologist-centric user experience in viewing, managing and analyzing images.
Agilent’s recent acquisition of Avida Biomed, which develops high-performance target enrichment workflows to aid clinical researchers using next-generation sequencing approaches in studying cancer, significantly strengthened the underlined segment's offerings.
The recent approval of Agilent’s Resolution ctDx FIRST by the U.S. Food and Drug Administration (FDA) remains a positive. The approval is about utilizing ctDx FIRST as a companion diagnostic (CDx) in the identification of advanced non-small cell lung cancer (NSCLC) patients with KRAS G12C mutations.
The approval positioned Agilent well to gain momentum in the genomic profiling space as ctDX FIRST uses a minimally invasive approach, which is preferred by 90% of cancer patients.
We believe all these endeavors are likely to drive growth in the DGG segment in the near term.
In the first quarter of fiscal 2023, DGG generated revenues of $342 million, which accounted for 19% of total revenues.
The growth of the DGG segment will contribute well to the company’s overall top-line growth.
For fiscal 2023, management expects revenues in the band of $7.03-$7.1 billion, implying a growth of 2.7-3.7% on a reported basis and 5.5-6.5% on a core basis from the respective fiscal 2022 figures.
Image: Bigstock
Agilent (A) Boosts Reach to Biopharma Researchers With PathAI
Agilent Technologies (A - Free Report) joined forces with PathAI in a bid to introduce an end-to-end solution for AI-powered assay development.
Both Agilent and PathAI, which offers AI-powered research tools and services for pathology, strive to bolster their precision medicine efforts through this deal.
The new solution integrates the assay development expertise of Agilent with PathAI’s algorithm development capabilities. The new AI-powered CDx assay development offering will likely cater well to the needs of biopharma companies.
Both companies have developed a digital pathology software solution, namely AISight, to accelerate the deployment of AI-driven assays.
We note that the latest move is likely to drive Agilent’s momentum among biopharma researchers and clinical application developers.
Agilent Technologies, Inc. Price and Consensus
Agilent Technologies, Inc. price-consensus-chart | Agilent Technologies, Inc. Quote
Growth Prospects
The PathAI partnership is likely to aid Agilent in gaining traction across the translational medicine and diagnostic solutions markets.
The latest move positions Agilent well to capitalize on the growth prospects present in the precision medicine market.
Per a report from Mordor Intelligence, the global market for precision medicine is expected to witness a CAGR of 9.2% between 2023 and 2028.
A Precedence Market Research report indicates that the market is expected to reach $175.6 billion by 2030, witnessing a CAGR of 11.5% between 2022 and 2030.
The latest deal will likely expand Agilent’s footprint in the digital pathology space.
Per a report from MarketsandMarkets, the global digital pathology market is expected to hit $1.4 billion by 2026, seeing a CAGR of 13.2% throughout 2022-2026.
We believe Agilent’s solid prospects in these promising markets will likely continue to aid it in winning investors’ confidence in the days ahead.
Agilent gained 7.9% over the last year, outperforming the industry’s growth of 2.8%.
Strengthening DGG Segment
The latest deal with PathAI is in sync with Agilent’s growing efforts toward strengthening its Diagnostics and Genomics Group (DGG) segment.
The company recently signed a multi-year distribution agreement with Proscia to deliver advanced digital diagnostic pathology solutions to pathologists.
Per the partnership terms, Agilent’s pathology staining solutions will be combined with Proscia’s enterprise pathology platform, called Concentriq Dx, which offers a pathologist-centric user experience in viewing, managing and analyzing images.
Agilent’s recent acquisition of Avida Biomed, which develops high-performance target enrichment workflows to aid clinical researchers using next-generation sequencing approaches in studying cancer, significantly strengthened the underlined segment's offerings.
The recent approval of Agilent’s Resolution ctDx FIRST by the U.S. Food and Drug Administration (FDA) remains a positive. The approval is about utilizing ctDx FIRST as a companion diagnostic (CDx) in the identification of advanced non-small cell lung cancer (NSCLC) patients with KRAS G12C mutations.
The approval positioned Agilent well to gain momentum in the genomic profiling space as ctDX FIRST uses a minimally invasive approach, which is preferred by 90% of cancer patients.
We believe all these endeavors are likely to drive growth in the DGG segment in the near term.
In the first quarter of fiscal 2023, DGG generated revenues of $342 million, which accounted for 19% of total revenues.
The growth of the DGG segment will contribute well to the company’s overall top-line growth.
For fiscal 2023, management expects revenues in the band of $7.03-$7.1 billion, implying a growth of 2.7-3.7% on a reported basis and 5.5-6.5% on a core basis from the respective fiscal 2022 figures.
Zacks Rank & Other Stocks to Consider
Currently, Agilent carries a Zacks Rank #2 (Buy).
Some other top-ranked stocks in the broader technology sector are Arista Networks (ANET - Free Report) , Salesforce (CRM - Free Report) and Analog Devices (ADI - Free Report) . While Arista Networks and Salesforce sport a Zacks Rank #1 (Strong Buy), Analog Devices carries a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Arista Networks has gained 31.7% in the year-to-date period. The long-term earnings growth rate for ANET is currently projected at 14.17%.
Salesforce has gained 45.2% in the year-to-date period. CRM’s long-term earnings growth rate is currently projected at 16.75%.
Analog Devices has gained 14.1% in the year-to-date period. The long-term earnings growth rate for ADI is currently projected at 10.5%.