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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 .
- 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 .
- 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 .
| Name | Position | External Roles | Short Bio | |
|---|---|---|---|---|
Adam H. Schechter ExecutiveBoard | President, CEO, and Chairman of the Board | Board Member at DaVita Inc.; Vice Chair of the Board of the American Clinical Laboratory Association; Board Member of Water.org; Member of the Corporate Advisory Council for the National Alliance for Hispanic Health | Extensive experience in pharmaceutical and healthcare industries; former President of Global Human Health at Merck & Co.; joined Labcorp as CEO in 2019 and became Chairman in 2020. | View Report → |
Amy B. Summy Executive | EVP and Chief Marketing Officer | Co-founder and Board Member of No More Kids with Cancer; Member of the Corporate Council and Brain Tumor Board of Visitors for The Children’s Hospital of Philadelphia | Former CMO at TE Connectivity and Partner at Ernst & Young; joined Labcorp in March 2020. | |
Julia Wang Executive | Executive Vice President and CFO | None reported | Former CFO of BeiGene; held leadership roles at Alexion Pharmaceuticals, Quest Diagnostics, and Johnson & Johnson; joined Labcorp as CFO in December 2024. | |
Peter J. Wilkinson Executive | Senior Vice President and Chief Accounting Officer | None reported | Former EVP and CFO of Syneos Health's clinical division; joined Labcorp in 2019 as SVP, Accounting, and became Chief Accounting Officer in April 2019. | |
Sandra D. van der Vaart Executive | EVP, Chief Legal Officer, Chief Compliance Officer, and Corporate Secretary | None reported | Joined Labcorp in 2001; promoted to current role in February 2020; oversees legal, compliance, and corporate governance functions. | |
Garheng Kong, M.D., Ph.D. Board | Independent Director | Managing Partner at HealthQuest Capital; Board Member at Venus Concept Inc. and Xeris Biopharma Holdings; Member of Duke University School of Medicine Board of Visitors; Board Member at Be the Match | Healthcare investor and entrepreneur; joined Labcorp's board in 2013. | |
Richelle P. Parham Board | Independent Director | President of Global E-Commerce and Business Development at Universal Music Group; Strategic Advisor at Camden Partners; Executive Chairman of Shyn; Board Member at Best Buy; Trustee at Drexel University | Extensive experience in marketing and e-commerce; joined Labcorp's board in 2016 and chairs the Compensation and Human Capital Management Committee. |
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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?
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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?
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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?
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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?
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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?
Notable M&A activity and strategic investments in the past 3 years.
| Company | Year | Details |
|---|---|---|
Baystate Medical Center | 2024 | Labcorp acquired the clinical and outreach businesses for $116.6 million in cash with allocated assets including $70.7 million in goodwill and intangible assets, enhancing its health system partnerships and clinical laboratory services. |
Providence Medical Foundation | 2024 | Acquired for $54.9 million in cash, this deal included $55.8 million in assets (with $25.9 million goodwill and $29.0 million in intangible assets) as part of Labcorp's strategy to expand its clinical and outreach networks. |
Westpac Labs, Inc. | 2024 | Acquired for $97.7 million in cash, with the purchase price allocated to approximately $45.1 million in goodwill and $50.8 million in identifiable intangible assets, this acquisition supports Labcorp’s expansion into clinical and outreach laboratory services. |
BioReference Health | 2024 | Acquired select assets for $237.5 million, including laboratory testing businesses focused on clinical diagnostics, reproductive and women’s health, which expands Labcorp's diagnostics footprint and specialty testing services. |
Invitae | 2024 | Acquired select assets for $239 million in cash plus non‐cash considerations during Invitae’s Chapter 11 process, enhancing Labcorp’s specialty testing capabilities in oncology and rare diseases, with the transaction closing on August 5, 2024. |
Ballad Health’s Outreach Lab Services | 2024 | Agreed to acquire select operating assets to expand laboratory and testing capabilities in rural communities across Tennessee, Virginia, North Carolina, and Kentucky, as part of Labcorp’s broader strategy to strengthen health system partnerships. |
Lab Works | 2024 | Labcorp signed an agreement to acquire select assets of Lab Works, an independent clinical laboratory in Alabama, although key details such as the purchase price were not disclosed. |
Multiple Businesses and Related Assets | 2023 | Acquired various clinical and outreach assets for approximately $516.7 million in cash, including deals with Jefferson Health, Enzo BioChem, Providence Health & Services – Oregon, and Tufts Medicine, to expand geographic reach and its diagnostic footprint. |
Personal Genome Diagnostics Inc. (PGDx) | 2022 | Acquired for $455.1 million in cash (plus contingent earnouts), this deal enhanced Labcorp’s liquid biopsy and genomic profiling capabilities to strengthen its oncology portfolio, leveraging PGDx’s cutting-edge technology and expertise. |
Select Outreach Laboratory Assets from Ascension | 2022 | Acquired hospital-based laboratory assets across 10 states for $400 million, expected to generate first-year annualized revenues of $550–$600 million and expand Labcorp’s clinical services and operational efficiencies. |
Prisma Health Outreach Laboratory Assets | 2022 | Entered into a strategic collaboration to acquire select outreach laboratory business assets from Prisma Health, aimed at enhancing diagnostic support in South Carolina; specific financial details were not disclosed. |
AtlantiCare Outreach Business Assets | 2022 | Acquired select clinical outreach assets from AtlantiCare to expand Labcorp's hospital partnerships in New Jersey, with no detailed financial terms provided, reinforcing its broader expansion strategy. |
RWJBarnabas Health Outreach Business Assets | 2022 | Completed the acquisition of select outreach assets from RWJBarnabas Health to further expand Labcorp’s hospital partnerships; while financial details were not disclosed, the integration is progressing well as part of Labcorp's long-term strategic investments. |
Recent press releases and 8-K filings for LH.
- Labcorp has expanded its precision oncology portfolio by launching Plasma Detect, a blood-based test using whole-genome sequencing to assess recurrence risk in stage III colon cancer patients.
- The company also introduced PGDx elio plasma focus Dx, the first and only FDA-authorized kitted liquid biopsy test for pan-solid tumor detection to aid targeted treatment selection, with a rapid turnaround of 4-5 days for actionable results.
- These innovations support Labcorp's commitment to advancing cancer diagnostics, with ongoing clinical studies evaluating the tests' effectiveness internationally.
- Labcorp announced the nationwide launch of its new pTau-217/Beta Amyloid 42 Ratio blood test designed for accelerated diagnosis of Alzheimer’s disease, offering results comparable to PET imaging and CSF testing.
- The test demonstrates 95% sensitivity and specificity in confirming amyloid pathology, potentially reducing diagnostic delays and the need for invasive procedures.
- This innovation expands Labcorp’s blood-based biomarker portfolio and will be showcased at the American Association of Neurology’s 2025 Annual Meeting in San Diego.
- Labcorp Holdings Inc. will release its first quarter 2025 financial results on April 29, 2025 before the market opens.
- A live conference call and webcast will commence at 9 a.m. ET on the announcement day, with instructions provided for dial-in access.
- The earnings webcast recording will remain available until April 16, 2026, allowing stakeholders to review the discussion.
- Labcorp Holdings Inc announced it will acquire select oncology and related clinical testing assets from BioReference Health, a subsidiary of OPKO Health, to expand its diagnostic capabilities.
- The transaction, valued at up to $225 million (with $192.5 million at closing and up to $32.5 million in an earnout), is expected to add approximately $85–100 million in annual revenue from the acquired assets.
- The deal, anticipated to close in the second half of 2025, is projected to be accretive to Labcorp’s earnings in its first year, reinforcing its leadership in oncology among laboratory services.