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LabCorp (LH) Expands Clinical Laboratory Services With New Pact
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Laboratory Corporation of America Holdings (LH - Free Report) or LabCorp inked a strategic collaboration deal with Ascension – a U.S.-based Catholic and non-profit health system to expand patient access to LabCorp’s services, drive efficiencies and advance clinical innovation. Other terms of the transactions were kept under wraps.
The companies anticipate that the transactions will close in the first half of 2022, subject to customary closing conditions and applicable regulatory approvals. This latest development is expected to fortify LabCorp’s Drug Development business.
More on the Collaboration
The lab management arrangement will cover Ascension’s hospital laboratories in Alabama, Florida, Kansas, Maryland, Michigan, New York, Oklahoma, Tennessee, Texas and Wisconsin.
Image Source: Zacks Investment Research
The transactions are built on LabCorp’s strong track record of establishing health system relationships that advance innovation and create value for patients, clinicians and communities. Additionally, LabCorp will work to enhance standardization and efficiency using proprietary analytic tools and processes.
The transactions represent the national implementation of a laboratory services model that has proven successful locally and regionally in developing innovation and creating value for patients, providers and communities.
Significance of the Collaboration
Through the extensive strategic collaboration, LabCorp will administer Ascension’s hospital-based laboratories in 10 states and purchase select assets of the health system’s outreach laboratory business. This long-term relationship will expand LabCorp’s clinical laboratory services in several states across the country while creating opportunities to improve care across all clinical areas.
Per management, LabCorp can provide care teams with the information and tools needed to make the best possible decisions to improve patient outcomes by collaborating with two mission-driven organizations delivering high-quality service and care. This relationship demonstrates LabCorp’s ability to support health systems effectively, manage industry-wide shifts and offer patients extended testing services.
The collaboration will enable Ascension to leverage LabCorp Drug Development to present improved opportunities for physicians and patients, including access to clinical trials, innovative new therapies and, where appropriate, new treatment options.
Industry Prospects
Per MARKETSANDMARKETS report, the global clinical laboratory services market is projected to reach $46.41 billion by 2022 from $113.44 billion in 2017, at a CAGR of 5.2%.
The rising demand for early and accurate disease diagnosis, growing public-private investments as well as research funding & grants to develop innovative laboratory testing procedures, and advancements in clinical diagnostic techniques are the key factors driving the market.
Recent Developments
In February 2022, LabCorp announced the opening of a new diagnostics laboratory in South Bend, Indiana, enabling the company to improve service levels and offerings to patients and physicians in South Bend and throughout the region. The around 25,000-square-foot facility features expanded capabilities and new equipment for performing high-quality and efficient testing, creating more robust lab offerings for the community.
In the same month, LabCorp announced the launch of Labcorp OnDemand -- an easy experience where individuals can purchase OnDemand tests online, collect samples in the convenience of their home, or schedule test appointments. The OnDemand platform includes a range of the company’s most popular tests, including its wellness, allergy, COVID-19, women’s health and fertility tests, to help individuals manage their health and make more informed decisions.
Price Performance
Shares of the company have gained 15.4% in a year compared with the industry's rise of 5.5%.
Zacks Rank and Key Picks
LabCorp currently carries a Zacks Rank #3 (Hold).
A few better-ranked stocks in the broader medical space that investors can consider are AMN Healthcare Services, Inc. (AMN - Free Report) , Henry Schein, Inc. (HSIC - Free Report) and West Pharmaceutical Services, Inc. (WST - Free Report) .
AMN Healthcare, carrying a Zacks Rank #2 (Buy), has a long-term earnings growth rate of 16.2%. AMN Healthcare surpassed earnings estimates in the trailing four quarters, delivering a surprise of 19.5%, on average.
AMN Healthcare has outperformed its industry over the past year. AMN has gained 27.6% versus the 59.6% industry decline.
Henry Schein has an estimated long-term growth rate of 11.8%. Henry Schein’s earnings surpassed estimates in the trailing four quarters, the average surprise being 21.86%. It currently carries a Zacks Rank #2. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Henry Schein has gained 7.3% compared with the industry’s 5.4% rise over the past year.
West Pharmaceutical has a long-term earnings growth rate of 27.6%. West Pharmaceutical surpassed earnings estimates in the trailing four quarters, delivering an average surprise of 29.4%.
West Pharmaceutical has outperformed its industry over the past year. WST currently carries a Zacks Rank of 2.
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LabCorp (LH) Expands Clinical Laboratory Services With New Pact
Laboratory Corporation of America Holdings (LH - Free Report) or LabCorp inked a strategic collaboration deal with Ascension – a U.S.-based Catholic and non-profit health system to expand patient access to LabCorp’s services, drive efficiencies and advance clinical innovation. Other terms of the transactions were kept under wraps.
The companies anticipate that the transactions will close in the first half of 2022, subject to customary closing conditions and applicable regulatory approvals. This latest development is expected to fortify LabCorp’s Drug Development business.
More on the Collaboration
The lab management arrangement will cover Ascension’s hospital laboratories in Alabama, Florida, Kansas, Maryland, Michigan, New York, Oklahoma, Tennessee, Texas and Wisconsin.
Image Source: Zacks Investment Research
The transactions are built on LabCorp’s strong track record of establishing health system relationships that advance innovation and create value for patients, clinicians and communities. Additionally, LabCorp will work to enhance standardization and efficiency using proprietary analytic tools and processes.
The transactions represent the national implementation of a laboratory services model that has proven successful locally and regionally in developing innovation and creating value for patients, providers and communities.
Significance of the Collaboration
Through the extensive strategic collaboration, LabCorp will administer Ascension’s hospital-based laboratories in 10 states and purchase select assets of the health system’s outreach laboratory business. This long-term relationship will expand LabCorp’s clinical laboratory services in several states across the country while creating opportunities to improve care across all clinical areas.
Per management, LabCorp can provide care teams with the information and tools needed to make the best possible decisions to improve patient outcomes by collaborating with two mission-driven organizations delivering high-quality service and care. This relationship demonstrates LabCorp’s ability to support health systems effectively, manage industry-wide shifts and offer patients extended testing services.
The collaboration will enable Ascension to leverage LabCorp Drug Development to present improved opportunities for physicians and patients, including access to clinical trials, innovative new therapies and, where appropriate, new treatment options.
Industry Prospects
Per MARKETSANDMARKETS report, the global clinical laboratory services market is projected to reach $46.41 billion by 2022 from $113.44 billion in 2017, at a CAGR of 5.2%.
The rising demand for early and accurate disease diagnosis, growing public-private investments as well as research funding & grants to develop innovative laboratory testing procedures, and advancements in clinical diagnostic techniques are the key factors driving the market.
Recent Developments
In February 2022, LabCorp announced the opening of a new diagnostics laboratory in South Bend, Indiana, enabling the company to improve service levels and offerings to patients and physicians in South Bend and throughout the region. The around 25,000-square-foot facility features expanded capabilities and new equipment for performing high-quality and efficient testing, creating more robust lab offerings for the community.
In the same month, LabCorp announced the launch of Labcorp OnDemand -- an easy experience where individuals can purchase OnDemand tests online, collect samples in the convenience of their home, or schedule test appointments. The OnDemand platform includes a range of the company’s most popular tests, including its wellness, allergy, COVID-19, women’s health and fertility tests, to help individuals manage their health and make more informed decisions.
Price Performance
Shares of the company have gained 15.4% in a year compared with the industry's rise of 5.5%.
Zacks Rank and Key Picks
LabCorp currently carries a Zacks Rank #3 (Hold).
A few better-ranked stocks in the broader medical space that investors can consider are AMN Healthcare Services, Inc. (AMN - Free Report) , Henry Schein, Inc. (HSIC - Free Report) and West Pharmaceutical Services, Inc. (WST - Free Report) .
AMN Healthcare, carrying a Zacks Rank #2 (Buy), has a long-term earnings growth rate of 16.2%. AMN Healthcare surpassed earnings estimates in the trailing four quarters, delivering a surprise of 19.5%, on average.
AMN Healthcare has outperformed its industry over the past year. AMN has gained 27.6% versus the 59.6% industry decline.
Henry Schein has an estimated long-term growth rate of 11.8%. Henry Schein’s earnings surpassed estimates in the trailing four quarters, the average surprise being 21.86%. It currently carries a Zacks Rank #2. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Henry Schein has gained 7.3% compared with the industry’s 5.4% rise over the past year.
West Pharmaceutical has a long-term earnings growth rate of 27.6%. West Pharmaceutical surpassed earnings estimates in the trailing four quarters, delivering an average surprise of 29.4%.
West Pharmaceutical has outperformed its industry over the past year. WST currently carries a Zacks Rank of 2.