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How Investors May Respond To Quest Diagnostics (DGX) Partnering With Octave On Nationwide MS Activity Testing

Simply Wall St · 1d ago
  • On 1 December 2025, Octave Bioscience announced a collaboration with Quest Diagnostics to offer Octave’s Multiple Sclerosis Disease Activity blood test through Quest’s network of 7,000 US collection sites, giving nationwide access to the first clinically validated multi-analyte MS disease activity score.
  • This agreement also grants Quest first rights to provide specimen collection for Octave’s future multiple sclerosis and Parkinson’s tests, strengthening Quest’s role in specialized neurology diagnostics and data-driven disease management.
  • Next, we’ll examine how expanding access to Octave’s MS disease activity blood test through Quest’s network could influence Quest’s investment narrative.

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Quest Diagnostics Investment Narrative Recap

To own Quest Diagnostics, you need to believe in steady demand for complex, data-rich testing and the company’s ability to convert that into consistent earnings and dividends. The Octave collaboration reinforces Quest’s push into higher-value neurology diagnostics, but on its own it is unlikely to shift the near term focus on reimbursement risk and execution around automation and cost control.

Among recent announcements, the Epic collaboration linked to Project Nova matters most alongside the Octave deal, because both lean into Quest’s role as an infrastructure and data partner for health systems. Together, they support the idea that productivity gains, test complexity and integration into clinical workflows could help offset pressures from PAMA, payer mix shifts and rising labor costs.

However, against this backdrop, the possibility of PAMA-driven reimbursement cuts remains a factor investors should be aware of if...

Read the full narrative on Quest Diagnostics (it's free!)

Quest Diagnostics' narrative projects $11.9 billion revenue and $1.3 billion earnings by 2028. This requires 4.1% yearly revenue growth and roughly a $0.4 billion earnings increase from $945.0 million today.

Uncover how Quest Diagnostics' forecasts yield a $197.31 fair value, a 8% upside to its current price.

Exploring Other Perspectives

DGX 1-Year Stock Price Chart
DGX 1-Year Stock Price Chart

Three Simply Wall St Community fair value estimates for Quest range from US$157.30 to US$224.73, underlining how far opinions can stretch. As you weigh those views, remember that future reimbursement trends and policy decisions around PAMA could meaningfully influence Quest’s ability to grow earnings and protect margins over time, so it is worth exploring several perspectives before forming your own stance.

Explore 3 other fair value estimates on Quest Diagnostics - why the stock might be worth 14% less than the current price!

Build Your Own Quest Diagnostics Narrative

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.