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    Labcorp Holdings Inc (LH)

    CFO Change
    Board Change
    New Share Buyback Program

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    Labcorp is a global leader in laboratory services, operating through two main segments: Diagnostics Laboratories (Dx) and Biopharma Laboratory Services (BLS) . The company provides a wide range of laboratory testing services, including routine and specialty/esoteric testing, and is heavily involved in the development of new drugs, having worked on 90% of the new drugs approved by the FDA in 2023 . Labcorp's strategic focus includes expanding its specialty testing capabilities in areas such as oncology, women's health, autoimmunology, and neurology .

    1. Diagnostics Laboratories (Dx) - Offers routine and specialty/esoteric testing services, with nearly all revenues generated in the U.S. This segment is a major contributor to the company's revenue .
    2. Biopharma Laboratory Services (BLS) - Focuses on early development research laboratories and central laboratory services, with revenues nearly evenly split between the U.S. and other countries .
    NamePositionStart DateShort Bio
    Adam H. SchechterPresident and Chief Executive OfficerNovember 2019Adam H. Schechter has served as a director of Labcorp since April 2013. He became the President and CEO in November 2019 and Chairman of the Board in May 2020. Previously, he held leadership roles at Merck & Co., Inc. .
    Glenn A. EisenbergExecutive Vice President and Chief Financial OfficerJune 2014Glenn A. Eisenberg has served as EVP and CFO since June 2014. He will transition to Special Advisor to the CEO on December 2, 2024, until his retirement on April 30, 2025 .
    Megan D. BaileyExecutive Vice President and Chief Strategy and Transformation OfficerMay 2023Megan D. Bailey has served in her current role since May 2023. Previously, she was Chief of Staff to the CEO and an Executive Committee member starting in July 2022. She was CEO of Personal Genome Diagnostics from April 2020 to July 2022 .
    Lance V. BerberianExecutive Vice President and Chief Information and Technology OfficerFebruary 15, 2020Lance V. Berberian has served as EVP and Chief Information and Technology Officer since February 2020. Previously, he was Senior Vice President and Chief Information Officer from February 2014 .
    Brian J. CaveneyExecutive Vice President and President, Early Development Research Laboratories and Chief Medical and Scientific OfficerMay 2023Brian J. Caveney has held his current position since May 2023. He joined Labcorp in September 2017 as Senior Vice President and Chief Medical Officer .
    Anita Z. GrahamExecutive Vice President and Chief Human Resources OfficerApril 2023Anita Z. Graham has served as EVP and Chief Human Resources Officer since April 2023. Previously, she held senior HR roles at VF Corporation, ADT Corporation, and Shire plc .
    Mark S. SchroederExecutive Vice President and President, Diagnostics Laboratories and Chief Operations OfficerMay 2023Mark S. Schroeder has served in his current role since May 2023. He joined Labcorp in May 2007 and has held various leadership positions, including Chief Supply Chain Officer .
    Amy B. SummyExecutive Vice President and Chief Marketing OfficerMarch 2, 2020Amy B. Summy has served as EVP and Chief Marketing Officer since March 2020. Previously, she was a Partner and Marketing & Insights Practice Leader at Ernst & Young LLP .
    Sandra D. van der VaartExecutive Vice President, Chief Legal Officer, Chief Compliance Officer, and Corporate SecretaryFebruary 2020Sandra D. van der Vaart has served in her current role since February 2020. She has held various positions within Labcorp's legal department since January 2001 .
    Peter J. WilkinsonSenior Vice President and Chief Accounting OfficerApril 2019Peter J. Wilkinson has served as SVP and Chief Accounting Officer since April 2019. Previously, he held positions such as EVP and CFO of Syneos Health, Inc.'s clinical division .
    Julia WangExecutive Vice President and Chief Financial OfficerDecember 2, 2024Julia Wang was appointed as EVP and CFO effective December 2, 2024. She previously served as CFO at BeiGene, Ltd. and held leadership roles at Alexion Pharmaceuticals, Quest Diagnostics, and Johnson & Johnson .
    1. Given the substantial growth of Labcorp OnDemand but its current immaterial impact on revenue, when do you anticipate this platform reaching a scale significant enough to break out its financials, and what are the main obstacles to achieving that critical mass?

    2. With Walgreens planning to close numerous stores and considering you have about 400 patient service centers within their locations, how do you intend to mitigate the potential impact on patient access and volumes, and what strategies are in place to ensure continuity of services in affected areas?

    3. The acquisition of Invitae has resulted in a margin decline this quarter, with expectations of slight earnings accretion only in 2025; can you elaborate on the integration challenges you're facing and how confident are you in achieving the projected top-line growth and margin improvement?

    4. You've mentioned ongoing strain in the employer testing-related business with no significant positive outlook for 2025; what strategic actions are you taking to address this underperforming segment, and is divestiture being considered to improve overall business performance?

    5. Despite underlying improvements, adjusted operating margins in the Diagnostics segment were negatively impacted by Invitae, weather, and calendar days; how sustainable are your margin improvement initiatives, and what measures are you implementing to mitigate such external factors affecting your profitability?

    Program DetailsProgram 1
    Approval DateJuly 24, 2024
    End Date/DurationNo expiration date
    Total additional amount$1,000.0 million
    Remaining authorization amount$1,355.4 million as of September 30, 2024
    DetailsPart of strategy to return capital to shareholders, following Fortrea spin-off
    YearAmount Due (in millions)Debt TypeInterest Rate (%)% of Total Debt
    2024$400.0 2.30% Senior Notes2.30 5.9% = (400.0 / 6,752.0) * 100
    2025$1,000.0 3.60% Senior Notes3.60 14.8% = (1,000.0 / 6,752.0) * 100
    2026$500.0 1.55% Senior Notes1.55 7.4% = (500.0 / 6,752.0) * 100
    2027$600.0 3.60% Senior Notes3.60 8.9% = (600.0 / 6,752.0) * 100
    2029$650.0 2.95% Senior Notes2.95 9.6% = (650.0 / 6,752.0) * 100
    2030$650.0 4.35% Senior Notes4.35 9.6% = (650.0 / 6,752.0) * 100
    2031$442.9 2.70% Senior Notes2.70 6.6% = (442.9 / 6,752.0) * 100
    2032$500.0 4.55% Senior Notes4.55 7.4% = (500.0 / 6,752.0) * 100
    2034$850.0 4.80% Senior Notes4.80 12.6% = (850.0 / 6,752.0) * 100
    2045$900.0 4.70% Senior Notes4.70 13.3% = (900.0 / 6,752.0) * 100
    NameStart DateEnd DateReason for Change
    Deloitte & Touche LLPNovember 2, 2020 PresentCurrent auditor.
    PricewaterhouseCoopers LLPN/ADecember 31, 2020 The change was the result of a competitive process conducted by the Audit Committee.

    Recent developments and announcements about LH.

    Corporate Leadership

      CFO Change

      ·
      Nov 19, 2024, 12:00 AM

      Labcorp's CFO, Glenn Eisenberg, has announced his plans to retire. Julia Wang will take over as the new CFO starting December 2, 2024. Eisenberg will remain with the company as a Special Advisor to the CEO until April 2025 to ensure a smooth transition .

      Leadership Change

      ·
      Nov 19, 2024, 12:00 AM

      Glenn Eisenberg is leaving his role as Chief Financial Officer (CFO) at Labcorp. He is retiring and will step down on December 2, 2024. He will remain as a Special Advisor to the CEO until April 2025 to ensure a smooth transition and assist with strategic initiatives .

      Julia Wang will step up as the new CFO starting December 2, 2024. She brings extensive experience from her previous roles at BeiGene, Alexion Pharmaceuticals, Quest Diagnostics, Johnson & Johnson, and PepsiCo .

      Board Change

      ·
      Nov 19, 2024, 12:00 AM

      Julia Wang has been appointed as the new Chief Financial Officer of Labcorp, effective December 2, 2024. She will replace Glenn Eisenberg, who will retire on April 30, 2025 .

    Financial Actions

      New Share Buyback Program

      ·
      Sep 23, 2024, 12:00 AM

      Laboratory Corporation of America Holdings has announced a new buyback program involving the issuance of $2,000,000,000 in debt securities. This includes $650,000,000 of 4.350% Senior Notes due 2030, $500,000,000 of 4.550% Senior Notes due 2032, and $850,000,000 of 4.800% Senior Notes due 2034. The interest on these notes is payable semi-annually on April 1 and October 1, starting from April 1, 2025. The company has the option to redeem these notes before their respective Par Call Dates at a price equal to the greater of 100% of the principal amount or a make-whole premium, plus accrued interest .