Laboratory Corporation Of America Holdings  (LH)
Other Ticker:  
    Sector  Healthcare    Industry Medical Laboratories
   Industry Medical Laboratories
   Sector  Healthcare
Price: $205.7300 $-0.77 -0.373%
Day's High: $206.4 Week Perf: -2.09 %
Day's Low: $ 204.40 30 Day Perf: -5.86 %
Volume (M): 717 52 Wk High: $ 243.30
Volume (M$): $ 147,508 52 Wk Avg: $215.93
Open: $205.21 52 Wk Low: $195.01

 Market Capitalization (Millions $) 18,028
 Shares Outstanding (Millions) 88
 Employees 75,500
 Revenues (TTM) (Millions $) 12,162
 Net Income (TTM) (Millions $) 419
 Cash Flow (TTM) (Millions $) 511
 Capital Exp. (TTM) (Millions $) 389

Laboratory Corporation Of America Holdings
Laboratory Corporation of America Holdings and its subsidiaries, headquartered in Burlington, North Carolina, is the second largest independent clinical laboratory company in the United States.'Through a national network of laboratories, the Company offers more than 4,400 different clinical laboratory tests which are used by the medical profession in routine testing, patient diagnosis, and in the monitoring and treatment of disease.'In addition, the Company has developed specialty and niche businesses based on certain types of specialized testing capabilities and client requirements, such as oncology testing, HIV genotyping and phenotyping, diagnostic genetics and clinical research trials.'The Company has significantly expanded its routine and specialty testing businesses through the acquisitions of Dynacare Inc. ("Dynacare") and DIANON Systems, Inc. ("DIANON").

The Company is committed to providing the highest quality laboratory services to its clients in full compliance with all federal, state and local laws and regulations.'The Companys Code of Business Conduct and Ethics outlines ethics and compliance policies adopted by the Company to meet this commitment.'These policies apply to all employees of the Company and its subsidiaries as well as the Companys Board of Directors.'The Code of Business Conduct and Ethics, as well as the Charters for the committees of Audit, Compensation, Ethics and Quality Assurance, and Nominating and Corporate Governance, and the Companys Corporate Governance Guidelines, are posted on the Companys website www.labcorp.com. The Company has established a Compliance Action hotline (1-800-801-1005), which provides a confidential and anonymous method to report a possible violation of a LabCorp compliance policy or procedure, or a federal or state law or regulation; a HIPAA Privacy hotline(1-877-234-4722), which provides a confidential and anonymous method to report a possible violation of a HIPAA privacy, security or billing policy or procedure; and an Accounting hotline (1-866-469-6893), which provides a confidential and anonymous method to report a possible violation of internal accounting controls or auditing matters.

The Clinical Laboratory Testing Industry

Laboratory tests and procedures are used generally by hospitals, physicians and other health care providers and commercial clients to assist in the diagnosis, evaluation, detection, monitoring and treatment of diseases and other medical conditions through the examination of substances in the blood, tissues and other specimens. Clinical laboratory testing is generally categorized as either clinical testing, which is performed on body fluids including blood and urine, or anatomical pathology testing, which is performed on cytologic samples, tissue and other samples, including human cells. Clinical and anatomical pathology procedures are frequently ordered as part of regular physician office visits and hospital admissions in connection with the diagnosis and treatment of illnesses.'Certain of these tests and procedures are used principally as tools in the diagnosis and treatment of a wide variety of medical conditions such as cancer, AIDS, endocrine disorders, cardiac disorders and genetic disease.'The most frequently requested tests include blood chemistry analyses, urinalyses, blood cell counts, Pap tests, HIV tests, microbiology cultures and procedures and alcohol and other substance abuse tests.

The clinical laboratory industry consists primarily of three types of providers: hospital-based laboratories, physician-office laboratories and independent clinical laboratories, such as those owned by the Company.'

Laboratory Testing Operations and Services

The Company has 31 primary testing facilities, and over 1,200 service sites consisting of branches, patient service centers and STAT laboratories.'A "branch" is a central facility which collects specimens in a region for shipment to one of the Companys laboratories for testing. A branch also is used as a base for sales staff.'Generally, a "patient service center" is a facility maintained by the Company to serve the physicians in a medical professional building or other strategic location.'The patient service center collects the specimens as requested by the physician.
The specimens are sent, principally through the Companys in-house courier system (and, to a lesser extent, through independent couriers), to one of the Companys major laboratories for testing. Some of the Companys patient service centers also function as "STAT labs", which are laboratories that have the ability to perform certain routine tests quickly and report results to the physician immediately.'

Company Strategy

The Company believes that it has differentiated itself from its competition and positioned itself for continued strong growth by building a leadership position in genomic and other advanced testing technologies.'This leadership position enables the Company to provide a broad menu of testing services for the infectious disease
and cancer markets, which it believes represent two of the most significant areas of future growth in the genomic clinical laboratory industry.'The Companys primary strategic objective is to expand its leadership position in genomic and other advanced testing technologies and leverage its national core testing infrastructure to deliver outstanding and innovative clinical testing services to patients and physicians nationwide.

Develop and Be First to Market with New Tests

Advances in medicine have begun to fundamentally change diagnostic testing, and new tests are allowing clinical laboratories to provide unprecedented amounts of health-related information to physicians and patients.'Significant new tests introduced over the past several years include a gene-based test for human papilloma virus, Myriad Genetics predictive test for breast cancer and tests for HIV phenotyping and cystic fibrosis.'As science continues to advance, the Company expects new testing technologies to emerge; therefore, it intends to continue to invest in advanced testing capabilities so that it can remain on the cutting edge of clinical laboratory testing.'The Company has added, and expects to continue to add, new testing technologies and capabilities through a combination of internal development initiatives, technology licensing and partnership transactions and selected acquisitions.'Through its national sales force, the Company rapidly introduces new testing technologies to physician customers.

DIANON is a national provider of oncology testing services and significantly enhances the Companys oncology testing capabilities.
DIANON is recognized by physicians, managed care companies and other customers as a leading provider of a wide range of anatomic pathology testing services, with particular strength in uropathology, dermatopathology, GI pathology and hematopathology.'DIANONs strengths in anatomic pathology complement the Companys strengths in other areas of cancer testing, particularly cytology.'The Company expects that DIANONs specialized sales force, scientific expertise, efficient operating model and proprietary CarePath clinical and pathology reporting system will allow it to enhance its cancer testing business.'The Company intends to apply DIANONs best practices to its existing anatomic pathology operations, which it expects will enable it to realize significant operational efficiencies

Testing Services

Routine Testing

The Company currently offers approximately 4,400 different clinical laboratory tests or procedures. Several hundred of these are frequently used in general patient care by physicians to establish or support a diagnosis, to monitor treatment or medication, or to search for an otherwise undiagnosed condition. The most frequently requested tests include blood chemistry analyses, urinalyses, blood cell counts, Pap tests, HIV tests, microbiology cultures and procedures and alcohol and other substance-abuse tests.'These routine procedures are most often used by physicians in their outpatient office practices. Physicians may elect to send such procedures to an independent laboratory or they may choose to establish an in-house laboratory to perform some of the tests.

The Company performs this core group of routine tests in each of its major laboratories, which constitutes a majority of the testing performed by the Company. The Company generally performs and reports most routine procedures within 24 hours, utilizing a variety of sophisticated and computerized laboratory testing instruments.

Specialty and Niche Testing

While the information provided by many routine tests may be used by nearly all physicians, regardless of specialty, many other procedures are more specialized in nature.'One of the primary growth strategies of the Company is the continued expansion of its specialty and niche businesses, which involve certain types of unique testing capabilities and/or client requirements.'In general, the specialty and niche businesses are designed to serve two market segments:
(I) markets which are not typically served by the clinical testing laboratory; and (II) markets which are served by the clinical testing laboratory and offer the possibility of adding related services (such as clinical trials or occupational drug testing) from the same supplier.'The Companys research and development group continually seeks new and improved technologies for early diagnosis.'For example, the Companys Center for Molecular Biology and Pathology ("CMBP") is a leader in molecular diagnostics and polymerase chain reaction ("PCR") technologies, which are often able to provide earlier and more reliable information regarding HIV, genetic diseases, cancer and many other viral and bacterial diseases. In August 2000, the Company acquired Los Angeles-based National Genetics Institute, Inc. (NGI), a leader in the development of PCR assays for Hepatitis C (HCV).' In June 2001, the Company acquired Minneapolis-based Viro-Med Laboratories, Inc., which offers molecular microbial testing using real time PCR platforms.' Management believes these technologies may represent a significant savings to the healthcare system increasing the detection of early stage (treatable) diseases. The following are specialty and niche businesses in which the Company offers testing and related services:

Infectious Disease.'The Company provides complete viral load testing as well as HIV genotyping and phenotyping.'In 2000, the Company added HIV GenoSure' to its portfolio of HIV resistance testing services.'The Companys use of this leading-edge technology puts it in the forefront of HIV drug resistance testing-one of the most important issues surrounding the treatment of HIV.'Additionally, the Company provides comprehensive testing for HCV including both PCR testing and genotyping at CMBP, NGI and Viro-Med.

Allergy Testing.'The Company offers an extensive range of allergen testing services as well as computerized analysis and a treatment program that enables primary care physicians to diagnose and treat many kinds of allergic disorders.

Clinical Research Testing.'The Company regularly performs clinical laboratory testing for pharmaceutical companies conducting clinical research trials on new drugs.'This testing often involves periodic testing of patients participating in the trial over several years.

Diagnostic Genetics.'The Company offers cytogenetic, molecular cytogenetic, biochemical and molecular genetic tests.

Identity Testing.'The Company provides forensic identity testing used in connection with criminal proceedings and parentage evaluation services which are used to assist in the resolution of disputed parentage in child support litigation.' Parentage testing involves the evaluation of immunological and genetic markers in specimens obtained from the child, the mother and the alleged father. Management believes it is now the largest provider of identity testing services in the United States.

Oncology Testing.'The Company offers an extensive series of testing technologies that aid in diagnosing and monitoring certain cancers and predicting the outcome of certain treatments.'The Companys scientists have novel assays for detecting melanoma and breast cancer in clinical development. In August of 2003, the Company began offering PreGen-Plus, a non-invasive technology to aid in the early detection of colorectal cancer in a broader population.'PreGen-Plus utilizes EXACT Sciences proprietary genomics-based technology.'In January 2003, the Company acquired DIANON, a national provider of oncology testing services.'DIANON is recognized by physicians, managed care companies and other customers as a leading provider of a wide range of anatomic pathology testing services, with particular strength in uropathology, dermatopathology, GI pathology and hematopathology.

Occupational Testing Services.'The Company provides testing for the detection of drug abuse for private and government customers, and also provides blood testing services for the detection of drug abuse and alcohol. These testing services are designed to produce "forensic" quality test results that satisfy the rigorous requirements for admissibility as evidence in legal proceedings. The Company also provides other analytical testing and a variety of management support services.

The specialized or niche testing services noted above, as well as other complex procedures, are sent to designated facilities where the Company has concentrated the people, instruments and related resources for performing such procedures so that quality and efficiency can be most effectively monitored.'CMBP, NGI and Viro-Med also specialize in new test development and related education and training.


The Company provides testing services to a broad range of health care providers.' The primary client groups serviced by the Company include:

Independent Physicians and Physician Groups

Physicians requiring testing for their patients are one of the Companys primary sources of testing services.'Fees for clinical laboratory testing services rendered for these physicians are billed either to the physician, to the patient or the patients third party payor such as insurance companies, Medicare or Medicaid.' Billings are typically on a fee-for-service basis. If the billings are to the physician, they are based on'customer fee schedule and subject to negotiation.' Otherwise, the patient or third party payor is billed at the laboratorys patient fee schedule, subject to third party payor limitations and negotiation by physicians on behalf of their patients.'Revenues received from Medicare and Medicaid billings are based on government-set fee


The Company provides hospitals with services ranging from routine and specialty testing to contract management services.
Hospitals generally maintain an on-site laboratory to perform immediately needed testing on patients receiving care.'However, they also refer less time sensitive procedures, less frequently needed procedures and highly specialized procedures to outside facilities, including independent clinical laboratories and larger medical centers.'The Company typically charges hospitals for any such tests on a fee-for-service basis which is derived from the Companys customer fee schedule.'Fees for management services are billed monthly at contractually agreed-upon rates.

HMOs and Other Managed Care Groups

The Company serves HMOs and other managed care organizations. These medical service providers typically contract with a limited number of clinical laboratories and then designate the laboratory or laboratories to be used for tests ordered by participating physicians.'The majority of the Companys managed care testing is negotiated on a fee-for-service basis.'Testing is sometimes reimbursed on a capitated basis for managed care organizations.
Under a capitated payment contract, the Company agrees to perform certain laboratory tests during a given month for which the managed care organization agrees to pay a flat monthly fee for each covered member.'The tests covered under agreements of this type are negotiated for each contract, but usually include routine tests and exclude highly specialized tests.'Many of the national and large regional managed care organizations prefer to use large independent clinical labs such as the Company because they can monitor service and performance on a national basis.

Other Institutions

The Company serves other institutions, including governmental agencies, large employers and other independent clinical laboratories that do not have the breadth of the Companys testing capabilities. The institutions typically pay on a negotiated fee-for-service basis.


Most testing services are billed to a party other than the physician or other authorized person who ordered the test.'In addition, tests performed by a single physician may be billed to different payors depending on the medical insurance benefits of a particular patient.'Payors other than the direct patient include, among others, insurance companies, managed care organizations, Medicare and Medicaid.'


The clinical laboratory business is intensely competitive.'There are presently two national independent clinical laboratories: the Company and Quest Diagnostics Incorporated ("Quest").

   Company Address: 358 South Main Street Burlington, 27215 NC
   Company Phone Number: 229-1127   Stock Exchange / Ticker: NYSE LH

Customers Net Income grew by LH's Customers Net Profit Margin fell to

5.29 %

2.74 %

• Customers Performance • Customers Expend. • Customers Efficiency • List of Customers


Stock Performances by Major Competitors

5 Days Decrease / Increase
DGX   -1.16%    
NEO   -5.12%    
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Labcorp's Quarterly Dividend Announcement Spurs Investor Interest, Yet Potential for Increased Returns Remains

Published Thu, Apr 11 2024 10:59 AM UTC

Labcorp Declares Quarterly Dividend and Assesses Impact on Company Shares
Labcorp, a renowned leader in innovative laboratory services, recently announced that its Board of Directors has declared a cash dividend of $0.72 per share of common stock. This news has generated considerable interest in the investor community, as they assess the potential impact on the company'...

Laboratory Corporation Of America Holdings

Laboratory Corporation Of America Holdings Faces Revenue Plunge in Fourth Quarter of 2023

Laboratory Corporation Of America Holdings recently reported disappointing financial results for the fiscal time-frame closing December 31, 2023. The company saw a significant decline in revenue, dropping by -37.586% to $2.29 billion. Additionally, the company posted a shortfall per share of $-1.97, compared to $-13.00 in the same period a year before.
In contrast to Laboratory Corporation Of America Holdings, the on average Medical Laboratories industry as a whole saw a revenue gain of 2.83% in the fourth quarter of 2023 compared to the previous year. However, Laboratory Corporation Of America Holdings saw a decline in both revenue and earnings per share compared to the preceding reporting season.

Laboratory Corporation Of America Holdings

Laboratory Corporation Of America Holdings

The most recent financial results from Laboratory Corporation Of America Holdings (LabCorp) reveal a decline in both top and bottom-line figures. With net profit per share dropping by 45.9% and revenue dropping by 15.233% year on year, the company faces increasing challenges. This article outlines the key facts and provides an analysis of LabCorp's financial performance, placing it in the context of the company's stock performance.
Overview of Financial Results:
In the recent fiscal period, LabCorp reported a decrease in net profit per share of 45.9% and a decline in revenue of 15.233% compared to the previous year. This equated to revenue of $3.06 billion and earnings per share (EPS) of $2.11, compared to $3.90 in the third quarter of 2022. Furthermore, net profit per share decreased by 0.47% from $2.12 per share. While revenue increased slightly by 0.761% from $3.03 billion, it failed to meet expectations.


Laboratory Of America Holdings's Segments
Routine Testing
 Segment     of total Revenue
Genomic and Esoteric Testing
 Segment     of total Revenue
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Laboratory Of America Holdings's Operating Statistics Decrease / Increase
Routine Testing Number of Requisitions (millions)   Routine Testing Number of Requisitions (millions) Decline   
Genomic and Esoteric Testing Number of Requisitions (millions)   Genomic and Esoteric Testing Number of Requisitions (millions) Decline   
Ontario Canada Number of Requisitions (millions)   Ontario Canada Number of Requisitions (millions) Decline   
Total Number of Requisitions (millions)   Total Number of Requisitions (millions) Decline   
Routine Testing Revenue Per Requisition ($)   Routine Testing Revenue Per Requisition ($) Decline   
Genomic and Esoteric Testing Revenue Per Requisition ($)     
Ontario Canada Revenue Per Requisition ($)   Ontario Canada Revenue Per Requisition ($) Decline   
Total Revenue Per Requisition ($)   Total  Revenue Per Requisition ($) Decline   


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