About Laboratory Corporation of America Holdings
Laboratory Corporation of America (LabCorp) is a top provider of clinical laboratory services, performing blood and other tests on more than 3 million specimens a day. Its customers include managed care organizations, contract research organizations (CROs), hospitals, doctors, government agencies, drug companies, independent clinical labs, food and nutritional companies, and employers. Services range from routine urinalyses, HIV tests, and Pap smears to specialty testing for diagnostic genetics, disease monitoring, forensics, identity, clinical drug trials, and allergies. Through LabCorp Diagnostics and Covance, it provides end-to-end drug development support. LabCorp operates about 60 primary labs where tests are performed.
LabCorp operates through two primary segments: LabCorp Diagnostics (LCD) and Covance Drug Development (CCD).
The LCD segment, which accounts for around 60% of LabCorp's annual revenue, offers nearly 5,000 different tests. Many of the tests it performs each year are routine tests (including blood chemistry analyses, urinalyses, blood cell counts, and HIV tests) and nutritional chemistry and safety tests. It also offers specialty testing services for women's health, allergies, infectious disease, oncology, pain management, and other areas. Covance (around 40% of revenue) provides end-to-end drug development, medical device and companion diagnostic development solutions from early-stage research to clinical development and commercial market access.
Most of LabCorp's operations are conducted through its extensive network of facilities throughout the US (which accounts for about 80% of revenue). The company also has joint ventures in Canada.
Covance operates a network of facilities in the US, Switzerland, Belgium, Singapore, and China. Covance has pre-clinical laboratories in Wisconsin, Virginia, Michigan, and Indiana.
It also operates labs in the UK, Germany, and China. Altogether, LabCorp, based in Burlington, North Carolina, operates in about 100 countries
Sales and Marketing
LCD offers its diagnostic services through a sales force focused on serving the specific needs of customers in different market segments. These market segments generally include primary care, women's health, specialty medicine (e.g., infectious disease, endocrinology, gastroenterology and rheumatology), oncology, ACOs, and hospitals and health systems. LabCorp's LCD segment receives about 15% of its net revenue from Medicare and Medicaid programs.
CDD's global sales activities are conducted by sales personnel in North America, Europe and the Asia-Pacific region. The sales force provides customer coverage across the biopharmaceutical industry for services including lead optimization, preclinical safety assessment, analytical services, clinical trials, central laboratories, biomarkers and companion diagnostics, market access and technology solutions.
LabCorp's revenue has grown by 36% over the past five years.
In 2019, revenue rose about 2% to about $11.6 billion, about a $221 million more than 2018. The 2019 revenue was primarily driven by an increase in the CDD segment.
LabCorp's net income fell to $823.8 million in 2019 from $883.7 million in 2018.
The company had $337.5 million in cash in 2019 compared to $426.8 million the year before. In 2019, operations produced $1.4 billion and investing activities used $1.3 billion, while financing activities used $253 million.
One of LabCorp's key selling points is the end-to-end nature of the data it collects throughout the company, from drug development to testing to trials. The company's customers see the data generated in early phase development as a foundation to the ensuing trial and maintain their relationship with the company.
Part of the Company's strategy involves deploying capital in investments that enhance the Company's business, which includes pursuing strategic acquisitions to strengthen the Company's scientific capabilities and enhance therapeutic expertise, enhance esoteric testing and global drug development capabilities, and increase presence in key geographic areas. Since 2015, LabCorp has invested net cash of some $7.2 billion and equity of $1.8 billion in strategic acquisitions. The company is focused on expanding its advanced testing capabilities, especially in the areas of genetic and cancer testing.
Key acquisition in 2019 was of Georgia–based MNG.
Closer to consumers, LabCorp has partnered with Walgreens to offer diagnostic tests in stores over the next few years. The in-store centers are branded LabCorp at Walgreens and provide specimen collection services for LabCorp testing.
Mergers and Acquisitions
In 2019 LabCorp acquired Georgia–based MNG, which specializes in complex biochemical testing for neurology. MNG expands LabCorp's capabilities in neurology and neurogenetics.
358 S Main St
Burlington, NC 27215-5837
Phone: 1 (336) 229-1127
Employer Type: Publicly Owned
Stock Symbol: LH
Stock Exchange: , NYSE
SVP and CIO: Lance V. Berberian
EVP, CFO and Treasurer: Glenn A. Eisenberg
Chairman, President and CEO: David P. King
Employees (This Location): 2,000
Employees (All Locations): 65,000
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