In an attempt to expand its portfolio through acquisitions and
Laboratory Corporation of America Holdings
recently formed an alliance with Mitsubishi Chemical Medience
Corporation (MCM), Japan's prominent diagnostic laboratory and
central lab. As per the deal, the clinical trials division of
LabCorp and MCM will extend their service offerings in Japan and
Both the companies are confident about the deal, which is
expected to enhance their global footprint, adding competitive
advantage. With their complimentary product and services, LabCorp
and MCM are optimistic about the launch of a complete global
solution for customers conducting trials in Japan or
internationally. The companies are currently discussing their
plans in the Drug Information Association (DIA) annual meeting in
Earlier in April, LabCorp expanded its long-term alliance with
Bristol-Myers Squibb Company
) by signing a new five-year agreement. Under this agreement,
Bristol-Myers selected LabCorp Clinical Trials as a preferred
provider for the company's full-service global central laboratory
services and biomarker testing. However, financial terms of the
deal were not disclosed.
The agreement is likely to support both the companies'
clinical development pipeline. Earlier, LabCorp's global central
lab, biomarker and specialty testing capabilities supported
Bristol-Myers Squibb's several early and late-stage clinical
development programs. Some of the other collaborating partners
are Abbott (Lung Cancer - Xalkori), Roche (Melanoma - Zelboraf;
multiple infectious diseases -
Cobas AmpliPrep/Cobas TaqMan HCV test, v2.0)
and John Hopkins (Melanoma)
Moreover, the reproductive portion of Genzyme's business and
LabCorps' legacy genetics business were brought together to form
'Integrated Genetics'. Genzyme's Oncology business and LabCorp's
legacy oncology business have been added to 'Integrated
Oncology'. The company views the scope of sequencing as a support
tool for molecular diagnostics and thus, is progressing to launch
new testing panels to support this technology.
Given the continuous focus on portfolio expansion, we are
confident about LabCorp garnering higher revenues from
specialized testing, going forward. The stock carries a Zacks
Rank #3 (Hold).
However, other stocks in the medical device sector, carrying a
Zacks Rank #1 (Strong Buy), such as
Myriad Genetics Inc.
) appear impressive.
BRISTOL-MYERS (BMY): Free Stock Analysis
HAEMONETICS CP (HAE): Free Stock Analysis
LABORATORY CP (LH): Free Stock Analysis
MYRIAD GENETICS (MYGN): Free Stock Analysis
To read this article on Zacks.com click here.