NEW YORK (TheStreet) -- Shares of Quest Diagnostics (DGX) - Get Report are advancing by 0.59% to $71.92 on Wednesday morning, as biotechnology company DiaSorin will buy Quest's immunodiagnostic and molecular diagnostic products business for $300 million in cash.
Under the agreement, DiaSorin will acquire all assets of Focus Diagnostics to develop, manufacture and distribute its molecular diagnostic products and its traditional immunoassay ELISA products, such as contracts and lists of customers, according to a company statement.
The acquisition does not include Quest's diagnostic information service laboratories, which are currently operating under the Focus Diagnostics brand.
"This transaction reflects our ongoing commitment to re-focusing on Quest's core diagnostic information services business," Quest CEO Steve Rusckowski stated.
Madison, NJ-based Quest is a provider of diagnostic testing information services.
The acquisition will help DiaSorin strengthen its offering in the U.S. market, accessing about 200 hospitals that use Focus.
DiaSorin is an Italy-based company that produces and markets in vitro diagnostics reagent kits used in immunodiagnostics and molecular diagnostics.
Separately, TheStreet Ratings Team has a "Buy" rating with a score of B on Quest.
This is driven by some important positives, which should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks covered.
The company's strengths can be seen in multiple areas, such as its expanding profit margins, growth in earnings per share, largely solid financial position with reasonable debt levels by most measures and notable return on equity.
The team believes its strengths outweigh the fact that the company shows weak operating cash flow.
Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.
You can view the full analysis from the report here: DGX