Labcorp Holdings Inc (LH) is collaborating with US health regulators to determine whether to expand its mpox testing capacity, driven by global concerns surrounding a newly identified virus strain outside of Africa. This move reflects the heightened vigilance surrounding the mpox outbreak, which has seen the emergence of a clade Ib variant initially discovered in the Democratic Republic of Congo and neighboring regions. Notably, this variant has been detected in countries such as Sweden and Thailand, prompting a global response.
Labcorp’s chief scientific officer, Marcia Eisenberg, revealed that the company currently handles approximately 500 mpox tests per month but possesses the capability to scale up to 25,000 tests if needed. This expansion potential underscores the company’s readiness to address a potential surge in testing demand. The company recently gained US approval for a home collection kit designed for patients aged 18 and older who suspect they may have mpox, further enhancing accessibility to testing.
Labcorp is not alone in its efforts to bolster mpox testing infrastructure. Roche Holdings AG (RHHBY) is also closely monitoring global demand and exploring ways to leverage its existing HIV testing infrastructure for mpox and other diseases in conjunction with African regulatory authorities. Roche emphasizes that its production capabilities are adaptable to fluctuating global needs. Other major diagnostics companies are also actively involved. Quest Diagnostics Inc (DGX) provides mpox testing services, while Abbott Laboratories (ABT) has developed the Alinity m test kit, which has received emergency use authorization in the US as part of the ongoing response to the mpox outbreak.
Beyond testing, international efforts to contain the outbreak are gaining momentum. Germany announced on Monday that it would donate 100,000 mpox vaccine doses from its military reserves to support containment efforts in Africa. The government also intends to provide flexible funding to the World Health Organization to combat the virus and will collaborate with African partners through the GAVI vaccination alliance. Currently, Germany possesses approximately 117,000 doses of the Bavarian Nordic A/S (BVNRY, BVNKF) Jynneos vaccine, initially procured for military stockpiling in 2022.
In response to these developments, LH stock experienced a slight uptick of 0.29%, closing at $231.56 on Monday.
