Guardant Health and Quest partner to expand blood-based cancer test

PALO ALTO/SECAUCUS - Guardant Health, Inc. (NASDAQ:GH) and Quest Diagnostics (NYSE:DGX), a prominent player in the Healthcare Providers & Services industry with a market capitalization of $20.9 billion, announced a strategic collaboration to make Guardant’s Shield blood test for colorectal cancer screening available through Quest’s nationwide network. According to InvestingPro analysis, Quest maintains a "GREAT" financial health score, positioning it well for this strategic expansion.

The Shield test, which received full FDA approval as a primary screening option for colorectal cancer in average-risk adults aged 45 and older, will be accessible to physicians and patients served by Quest beginning in the first quarter of 2026.

Under the multi-year agreement, healthcare providers will be able to order the Shield test directly through their existing Quest accounts and electronic health records. Patients can have blood drawn at Quest’s 2,000 service centers or by its 6,000 in-office phlebotomists across the United States. The company’s extensive network helped generate annual revenues of $10.5 billion, with a solid revenue growth of 12.6% in the last twelve months.

Colorectal cancer is the second leading cause of cancer-related deaths in the U.S., but has a 91 percent five-year survival rate when detected early. Despite this, approximately one-third of eligible adults do not complete recommended screenings.

"This collaboration reinforces our commitment to expanding our oncology offering to include cutting-edge screening technology for diseases, like colorectal cancer, that can often be prevented when caught early," said Jim Davis, Chairman, CEO and President of Quest Diagnostics, according to the press release.

The Shield test offers an alternative to traditional screening methods like colonoscopy and stool tests, requiring only a simple blood draw. The test is currently covered by Medicare and the Veterans Affairs Community Care Network.

Quest provided healthcare connectivity solutions to approximately 650,000 clinician and hospital accounts last year. The company’s commercial sales team will educate primary care physicians and gynecologists about the test to increase awareness.

The collaboration aims to address barriers to colorectal cancer screening by providing a less invasive alternative that can be completed during any healthcare visit. Quest’s stock is currently trading near its 52-week high, reflecting investor confidence in its strategic initiatives. For detailed valuation metrics and additional insights, including 8 key ProTips, visit InvestingPro, where you can access comprehensive Pro Research Reports covering what really matters about Quest Diagnostics and 1,400+ other top stocks.

In other recent news, Quest Diagnostics has launched a new pharmacogenomic laboratory test service aimed at helping healthcare providers understand patients’ genetic responses to medications. This service is intended to assist clinicians in selecting appropriate medications and dosages across various medical specialties. Additionally, Quest Diagnostics has formed a joint venture with Corewell Health to expand laboratory services in Michigan. The new entity, Diagnostic Lab of Michigan, LLC, will operate from a state-of-the-art facility featuring advanced technologies.

The U.S. Food and Drug Administration has granted Breakthrough Device Designation to Quest Diagnostics’ Haystack MRD test, which is used for identifying minimal residual disease in stage II colorectal cancer patients. This designation could potentially aid in determining which patients might benefit from additional therapy post-surgery. In other developments, Baird has downgraded Quest Diagnostics’ stock rating from Outperform to Neutral, citing a balanced risk/reward profile.

Furthermore, Quest Diagnostics’ subsidiary Haystack Oncology has partnered with Mass General Brigham to study the use of liquid biopsy technology in cancer treatment. The collaboration will focus on clinical trials to evaluate the effectiveness of the Haystack MRD test in detecting minimal residual disease after treatment in specific types of cancer.

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