Key insights
- The American Cancer Society reaffirmed Cologuard as a preferred noninvasive screening option, benefiting Abbott. While ABT trades near its 52-week low, InvestingPro suggests it's undervalued. Abbott is also commercializing a blood-based test pending FDA approval. Cologuard has been used extensively and is included in screening quality measures, potentially improving cancer detection rates and reducing costs.
ABBOTT PARK, Ill. - Abbott (NYSE:ABT) said today the American Cancer Society has released updated colorectal cancer screening guidelines that reaffirm Cologuard and Cologuard Plus as preferred noninvasive screening options for adults age 45 and older at average risk for colorectal cancer, according to a press release statement.The positive news comes as Abbott shares trade near their 52-week low at $86.67, down 30% year-to-date, despite the company’s $151 billion market cap and position as a prominent player in the Healthcare Equipment & Supplies industry. According to InvestingPro analysis, the stock appears undervalued at current levels, with 11 additional ProTips available to subscribers.
Both tests are recommended at a three-year interval and are designed to detect colorectal cancer and identify precancerous lesions. Cologuard Plus detects 95% of colorectal cancers at 94% specificity age-weighted to the U.S. screening population.
Abbott announced an agreement to commercialize a blood-based test from Freenome pending FDA approval. The company said the blood-based test will be designed for individuals who decline other screening methods, while Cologuard tests will continue as first-line screening options.
Cologuard tests have been used more than 23 million times since first being included in the ACS Colorectal Cancer Screening Guideline in 2014. The tests are included in colorectal cancer screening quality measures such as HEDIS and Stars.
A recently published analysis found that a Cologuard-first screening approach could nearly double colorectal cancer detection and reduce colorectal cancer-related costs. A separate modeling study suggests that Cologuard Plus could detect more cancers and precancerous lesions and deliver more life-years gained over 10 years than a single screening colonoscopy when used at guideline-recommended intervals.
"The updated ACS guideline reinforces the importance of screening approaches that combine strong clinical performance with the ability to reach more patients," said Paul Limburg, chief medical officer of screening at Abbott’s cancer diagnostics business.
The Cologuard test was developed in collaboration with Mayo Clinic. Cologuard Plus is FDA-approved for both cancer and precancer detection. Both tests allow patients to complete collection at home without special preparation.
In other recent news, Abbott Laboratories announced it received U.S. Food and Drug Administration clearance and a CE Mark for its Ultreon 3.0 Software, an AI-powered imaging platform for coronary procedures. The system provides real-time guidance during procedures to open blocked heart arteries, utilizing advanced imaging technology. Meanwhile, Abbott’s first-quarter results have led several analyst firms to adjust their stock price targets. Leerink Partners lowered its target to $106, citing mixed results, including a 1% increase in worldwide sales and earnings per share in line with expectations. Bernstein SocGen Group also reduced its target to $110, noting a 3.0% organic growth rate that was flat compared to previous quarters. Piper Sandler decreased its target to $115, pointing to missed revenue expectations and underperformance in the diabetes segment. Additionally, TD Cowen cut its price target to $115, attributing the decision to lowered organic guidance and weaknesses in specific product lines. These developments highlight the mixed reactions from analysts following Abbott’s latest financial disclosures.
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