Diagnostics giant LabCorp buys CRO Covance for $6.1 billion
- NC-based LabCorp, the second largest lab testing and diagnostics company (after Quest), is buying NJ-based Covance in order to expand into clinical trial services.
- The deal is valued at $6.1 billion, or $105.12 per share—a 32% premium over Covance's closing price on Friday.
- LabCorp has been acquisition-oriented for some time, with a 2010 purchase of Genzyme Genetics, a 2011 buyout of Clearstone Central Laboratories in Canada, and a recent acquisition of LipoScience in Raleigh, NC .
LabCorp is much more than a laboratory testing and diagnostics company. In addition to providing testing for hospitals, health organizations, and physicians, LabCorp has also developed companion diagnostics.
In addition, LabCorp has been a go-to source for the pharma industry for support with lab testing as part of clinical trial protocols. Acquiring Covance now expands LabCorp's role as a company that can conduct clinical trials independently, including doing all of the lab testing and providing additional support services.