Quest Diagnostics' Strategic Expansion into Precision Medicine: A Deep Dive into Pharmacogenomics and Competitive Differentiation

In the rapidly evolving landscape of healthcare, Quest Diagnostics has positioned itself as a pioneer in precision medicine, leveraging pharmacogenomics to redefine how treatments are tailored to individual genetic profiles. As the global pharmacogenomics market is projected to grow at a compound annual growth rate (CAGR) of 9.8% from 2025 to 2032, reaching USD 6.66 billion by 2032 [6], Quest’s strategic investments in this space are not just timely but transformative. This article examines Quest’s pharmacogenomics initiatives, competitive advantages, and how it stacks up against rivals like LabCorp and Illumina.

Strategic Growth in Pharmacogenomics: A Precision Medicine Play

Quest Diagnostics has aggressively expanded its pharmacogenomics (PGx) offerings, most notably with the launch of an advanced PGx testing service that analyzes 17 genes and 4 HLA alleles to optimize medication prescriptions [3]. This service is part of a broader strategy to integrate genetic insights into clinical decision-making, particularly in oncology and autoimmune diseases. For instance, Quest’s collaboration with Scipher Medicine to scale the PrismRA test for rheumatoid arthritis (RA) exemplifies its commitment to precision immunology. By combining RNA extraction, next-generation sequencing (NGS), and predictive analytics, the PrismRA test helps clinicians identify patients likely to respond to TNF inhibitor therapies [4].

The company’s focus on AI and digital pathology further strengthens its pharmacogenomics capabilities. A partnership with Proscia has demonstrated AI’s potential to revolutionize diagnostic workflows: pathologists using Proscia’s tools achieved a 2.9-case-per-hour sign-out rate in prostate cancer diagnostics, compared to 1.2 cases per hour with traditional methods [3]. Such advancements not only improve efficiency but also reduce diagnostic errors, a critical factor in high-stakes fields like oncology.

Market Positioning and Competitive Differentiation

Quest Diagnostics operates in a crowded market, competing with LabCorp and Illumina—each with distinct strengths. LabCorp, for example, has expanded its genomic services through acquisitions, such as the $225 million purchase of BioReference Health’s oncology testing division in 2025 [5]. It also emphasizes direct-to-consumer (DTC) testing via its Labcorp OnDemand platform, aiming to democratize access to genetic insights. Meanwhile, Illumina’s dominance in sequencing technology—controlling 70% of the global sequencing platform market [1]—gives it a critical edge in the pharmacogenomics supply chain.

Quest, however, differentiates itself through its broad test menu, clinical partnerships, and data-driven innovation. The company’s extensive network of hospitals, clinics, and academic institutions allows it to integrate PGx testing into routine clinical workflows [2]. Its partnerships with firms like Scipher Medicine and Proscia enable it to offer cutting-edge solutions that bridge the gap between genetic data and actionable clinical insights. Additionally, Quest’s focus on population health management—leveraging its data assets to support value-based care—positions it as a key player in the shift toward personalized medicine [1].

Challenges and Opportunities

While Quest’s pharmacogenomics segment is poised for growth, challenges remain. The lack of publicly available revenue figures for this specific area [4] makes it difficult to quantify its current market share relative to LabCorp or Illumina. However, the broader esoteric testing market—where Quest and LabCorp collectively hold over 30% of the global market—provides a strong foundation. With NGS now used in 70% of oncology test panels [1], Quest’s investments in sequencing and AI are likely to yield long-term gains.

Illumina’s technological edge in sequencing platforms could pose a challenge, but Quest’s strength lies in its ability to translate complex genetic data into clinical utility. By focusing on partnerships and AI-driven analytics, Quest mitigates reliance on hardware and instead emphasizes end-to-end solutions for healthcare providers.

Conclusion: A Strong Contender in the Precision Medicine Era

Quest Diagnostics’ expansion into pharmacogenomics is a testament to its forward-thinking approach. By combining advanced sequencing, AI, and strategic collaborations, the company is not only addressing the growing demand for personalized medicine but also establishing a competitive moat in a market expected to nearly double in size by 2032 [6]. While LabCorp and Illumina remain formidable rivals, Quest’s unique blend of clinical integration, data expertise, and innovation makes it a compelling investment for those betting on the future of precision medicine.

Source:
[1] Esoteric Testing Market Size & Forecast [2033] [https://www.marketgrowthreports.com/market-reports/esoteric-testing-market-115176]
[2] United States Gene Test Service Market Size 2026 [https://www.linkedin.com/pulse/united-states-gene-test-service-market-0vzdc/]
[3] Quest Diagnostics Launches Advanced PGx Testing Service [https://www.stocktitan.net/news/DGX/quest-diagnostics-launches-advanced-pharmacogenomics-p-gx-3lrmhx5pcull.html]
[4] Quest Diagnostics and Scipher Medicine collaborate to scale precision medicine access for patients with rheumatoid arthritis [https://www.rna-seqblog.com/quest-diagnostics-and-scipher-medicine-collaborate-to-scale-precision-medicine-access-for-patients-with-rheumatoid-arthritis/]
[5] What Are LabCorp's Growth Strategy and Future Prospects? [https://canvasbusinessmodel.com/blogs/growth-strategy/labcorp-growth-strategy?srsltid=AfmBOopdGW9QsPybl_6TH2FWCCa5jD67BVv9TzX_Jh-gJ1EZe36xg7tY]
[6] Pharmacogenomics Market Size, Share | Industry Report [https://www.fortunebusinessinsights.com/pharmacogenomics-market-106937]