ABT's i-STAT TBI Test Receives Approval in Canada: Stock to Rise?

Abbott Laboratories ABT recently received Health Canada approval for the i-STAT TBI test cartridge for use with whole blood. It is designed to help clinicians assess suspected concussion at the patient's bedside and obtain lab-quality results in 15 minutes.  

The latest approval expands the company’s TBI test offerings, which include the i-STAT TBI Plasma test, and the ARCHITECT and Alinity i lab test (serum and plasma).

ABT Stock’s Likely Trend Following the News

Following the announcement, Abbott’s shares edged down 1.2%, finishing at $134.01 on Monday. 

On a positive note, Abbott’s accelerated investments in the R&D pipeline are yielding positive results. Hence, we expect the market sentiment toward ABT stock to turn positive surrounding the latest approval. 

Abbott holds a market capitalization of $230.37 billion. The company’s earnings yield of 3.9% surpasses the industry’s 0.6%. ABT delivered an average earnings beat of 1.6% in the trailing four quarters.  

About Abbott’s i-STAT TBI Test Cartridge Usage

For decades, standard TBI assessment has remained the same, with doctors leveraging tools, such as the Canadian CT Head Rule, which uses the Glasgow Coma Scale to detect brain tissue damage or lesions. However, the whole blood test on a portable instrument helps clinicians evaluate patients 18 years of age and older with suspected mild traumatic brain injury (mTBI), commonly known as a concussion. The blood test provides objective information and helps remove the ambiguity of a standard concussion assessment. The i-STAT TBI test cartridge can be used to help evaluate patients up to 24 hours after injury. 

The i-STAT TBI test cartridge with the i-STAT Alinity System requires a small venous blood sample. The cartridge is then inserted into the portable i-STAT Alinity instrument. The test measures two brain-specific biomarkers, ubiquitin C-terminal hydrolase L1 (UCH-L1) and glial fibrillary acidic protein (GFAP), which are released into the blood stream during a significant brain injury. Testing for these two biomarkers following an injury can provide essential and objective information about a patient's condition and help healthcare providers choose an appropriate treatment plan.

Industry Prospect Favors ABT

Per a report by Brain Injury Canada, an estimated 165 million Canadians will experience a TBI in 2025. Likewise, the Government of Canada released a report stating that each year more than 20 million people are hospitalized for TBI in the country, and the injury can range from mild to severe and include concussions. Even a mild form of TBI can have long-term consequences. Among all types of TBIs, concussions are the most common, accounting for approximately 80-95% of such injuries. 

Another Development by Abbott

Last month, Abbott received Food and Drug Administration (“FDA”) approval for its Tendyne transcatheter mitral valve replacement (TMVR) system. The Tendyne system replaces mitral valves that are not functioning properly due to severe mitral annular calcification (MAC).

ABT Stock Price Performance

Over the past year, Abbott’s shares have risen 27.3%, surpassing the industry’s 8.4% growth.

ABT’s Zacks Rank and Key Picks

Abbott currently carries a Zacks Rank #3 (Hold). 

Some better-ranked stocks in the broader medical space are Align Technology ALGN, Hims & Hers Health HIMS and Cencora COR. 

Align Technology has an estimated long-term earnings growth rate of 11.2% compared with the industry’s 9.9%. Its earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 3.4%. Its shares have lost 27.7% compared with the industry’s 3.3% decline in the past year.

ALGN sports a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Hims & Hers Health, currently carrying a Zacks Rank #2 (Buy), has an earnings yield of 1.3% against the industry’s -10.1%. Shares of the company have surged 129.7% compared with the industry’s 35.9% gain. HIMS’ earnings surpassed estimates in two of the trailing four quarters, matched once and missed in the other, the average surprise being 2.8%.

Cencora, carrying a Zacks Rank #2 at present, has an earnings yield of 5.4% compared with the industry’s 3.8%. Shares of the company have rallied 25.9% against the industry’s 14.4% decline. COR’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 6%.

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This article originally published on Zacks Investment Research (zacks.com).

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