Illumina, Inc.
ILMN
together with the researchers at the University of Colorado and Harvard Pilgrim Health Care (“HPHC”), announced positive study outcome related to the evaluation of the impact of expanded coverage of non-invasive prenatal testing (NIPT). The expanded insurance coverage of NIPT includes pregnant women under the age of 35 through an innovative risk-sharing agreement.
Back in 2018, Illumina and HPHC entered into this ‘innovative risk-sharing agreement’ to unlock NIPT coverage for all pregnant and single gestation women under the age of 35.
The research validated that expanding NIPT providers solely increased HPHC’s prices by less than 3 cents per member per 30 days. This is going to provide Illumina with wider patient access under next-generation sequencing (NGS) for NIPT.
Study Highlights
The risk-sharing agreements study aimed to address the lack of transparency by involving commercial companies are not always made public. Notably, Illumina and HPHC engaged a third-party collaborator to develop a research protocol, complete the analyses and lead the publication expansion.
The research findings demonstrate that expanding NIPT coverage to women under 35 increased the adoption and usage of NIPT and reasonably elevated prenatal screening outlay.
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The research also highlighted how payers can present NIPT access to all pregnant women and enhanced outcomes at similar costs.
Considering the research outcomes from the study, many more payers are likely to extend their insurance coverage for pregnant women.
Industry Prospects
Per a report by Grand View Research
, the global non invasive prenatal testing market size was valued $2.83 billion in 2020 and is expected to reach $6.47 billion by 2028 at a CAGR of 10.9%. Improving reimbursement policies for average and low-risk pregnancies are key catalysts that are driving the market.
Considering market growth, favorable study outcomes of NIPT will boost Illumina’s business growth.
Recent Developments
In March 2021, Illumina announced the receipt of medical device registration for its NextSeq 550Dx NGS platform, associated reagent kits and reagents for the company’s MiSeq Dx. Notably, the registration of the two IVD-platforms will enable developers to boost the clinical use of NGS-based molecular diagnostics.
In January 2021, Illumina collaborated with Sequoia Capital to boost the startup ecosystem in China with the launch of the Sequoia Capital China Intelligent Healthcare Genomics Incubator. With this alliance, the company will focus on establishing life sciences startup companies that specialize in genomics.
Price Performance
Shares of the company have surged 84.9% in a year’s time compared with the
industry
’s growth of 28.6%.
Zacks Rank and Key Picks
Currently, Illumina carries a Zacks Rank #4 (Sell).
A few better-ranked socks from the broader medical space are
Acorda Therapeutics, Inc.
ACOR
,
Atea Pharmaceuticals, Inc.
AVIR
and
Avid Bioservices, Inc.
CDMO
, each carrying a Zacks Rank #2 (Buy). You can see
the complete list of Zacks #1Rank (Strong Buy) stocks here.
Acorda Therapeutics has a projected long-term earnings growth rate of 15%.
Atea Pharmaceuticals has a projected long-term earnings growth rate of 164%.
Avid Bioservices has an estimated long-term earnings growth rate of 160%.
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