Introduction
LabCorp is a large US-based laboratory testing company. The company provides a range of services, including clinical lab tests, disease management programs and genetic tests. It also provides pathology services for physicians who use the company’s products. LabCorp operates in more than 500 locations across the US and employs over 20,000 people globally. It was founded in 1979 by Dr Robert L. Reller and Dr Joseph Bufalino Jr., two physicians from Burlington County New Jersey who saw an opportunity to combine their skills with technology to provide laboratory testing services at lower costs than other providers at that time did
Overview of the company
LabCorp is a US based laboratory testing company that provides clinical testing services to hospitals, healthcare systems and patients across the country. LabCorp is the largest clinical laboratory in the US, as well as one of the largest medical diagnostic testing companies in the world.
LabCorp generates its revenues by providing diagnostic testing services for medical conditions such as diabetes, cardiovascular disease, cancer and infectious diseases. The company also offers drug development services for pharmaceutical companies; including drug metabolism studies (which determine how a drug metabolizes in the body), pharmacogenomic profiling (which determines how individuals respond to medications based on their genetics), preclinical studies (which help identify potential toxic effects) and other customized solutions.
What is Laboratory Corp. of America (LabCorp)
LabCorp is a US laboratory testing company that provides clinical, anatomic pathology and diagnostic services. The company operates through four segments: Clinical Diagnostics, Anatomic Pathology, Blood and Transfusion Services, and Laboratory Operations Support. It offers lab tests for healthcare providers in offices, hospitals and medical centers across the United States; diagnostics services to hospitals including blood banking services; specimen collection from patients in office-based physician practices; anatomic pathology services including surgical pathology evaluations of biopsy specimens; molecular testing services related to the detection of infectious diseases with an emphasis on HIV/AIDS through its Molecular Diagnostics business segment; microbiological testing facility management services; hematology analysis using cell-separation technology (CST); immunohematology blood bank management services for transfusion programs; mail order distribution program for specimen collection devices used by physicians’ offices in collecting blood samples from patients for clinical laboratory testing at third party laboratories like LabCorp locations around the country; contract medical informatics professional staff who design information systems solutions to support patient care delivery needs across all operations segments as well as development engineering support activities such as research & development (R&D), prototype development/manufacturing (pilot production) activities related directly or indirectly serving customers’ needs answering customer inquiries
History of LabCorp
- In January 1976, LabCorp was founded in North Carolina as a small laboratory focusing on blood testing.
- In 2008, it was acquired by the private-equity firm Hellman & Friedman LLC in a $1.5 billion deal.
- In 2013 and 2014, LabCorp grew through the acquisition of multiple other companies: Pathology Associates Medical Laboratories and Health Diagnostic Laboratory Inc., which added over 1,000 locations to their operations across the country; Quest Diagnostics Inc., which added 800 laboratories; and Health Management Systems Inc., adding 70 hospital laboratories to its services portfolio.
- In 2015 LabCorp was acquired by Bain Capital for $6 billion (including debt).
- In 2018 LabCorp announced plans to “purchase” DDC Labs (a joint venture between Quest Diagnostics/LabCorp) for $3 billion—in reality this means that they’re planning on buying out Quest’s stake in DDC so that they can run it themselves without having to pay back any money if things go south later down the line
What are the key services offered by LabCorp?
LabCorp offers a range of services, including clinical testing, molecular diagnostics, molecular genetics, molecular pathology, and anatomic pathology. LabCorp also offers clinical testing for infectious diseases, including HIV/AIDS; hepatitis B; hepatitis C; syphilis; and other sexually transmitted infections (STIs).
How does LabCorp make money?
LabCorp is a for-profit company. This means that it has shareholders who want to see a return on their investment, and this is why LabCorp charges for its products and services. LabCorp is also publicly traded—its stock can be bought and sold on the stock market, and the price of this stock fluctuates over time. Being publicly traded means that other investors have an interest in how well (or not) LabCorp does financially.
LabCorp is also a healthcare company; it provides labs with testing services as well as medical supplies such as needles and gloves used during patient care procedures performed at hospitals and doctor’s offices around the country. Labs use these supplies to test blood samples sent from doctors or other medical professionals who have performed diagnostic tests on patients they’ve seen in person or via video chat sessions over Skype or FaceTime..
LabCorp has grown significantly since its founding in 1976 because it offers such good service at such low prices compared with its competitors; it has become one of America’s largest providers of diagnostic testing services with almost 6200 locations across 37 states plus Puerto Rico/Uruguay/Venezuela/Guatemala City (but not Canada or Mexico). This widespread presence gives many people access to affordable healthcare services even if they live far away from cities where these types of businesses tend to cluster near hospitals.”
How has LabCorp grown over the years?
LabCorp has grown in a number of ways. It has grown by acquiring other companies, expanding into new markets and countries, and expanding its services and technologies. Let’s take a look at these different ways LabCorp has grown over the years.
- In 2002, LabCorp acquired Digene Corporation for an estimated $840 million to expand its genetic testing business. The purchase gave LabCorp access to testing for infectious diseases like HIV/AIDS.
- In 2006, LabCorp bought Quest Diagnostics Incorporated (NYSE: DGX) for an estimated $7 billion to acquire that company’s customer base as well as some of DGX’s medical laboratories in California and Florida as well as other locations across America. This acquisition also expanded LabCorp’s offerings across both hospital systems (such as Kaiser Permanente) and physician practices (such as physicians groups).
- Also in 2006, LabCorp purchased UCD Medical Center Foundation in Sacramento California for around $31 million dollars so they could build their own facilities there instead of renting space from the hospital system they were working with before this deal was made between them both parties involved!
What is the future outlook for LabCorp?
The future outlook for LabCorp is positive. The company is expected to grow its revenue by about 5% per year through 2021, which represents a 2.1% compound annual growth rate (or CAGR). It’s also expected to grow its earnings per share by about 10% per year through 2021, which is a 3.5% CAGR. Combined with this growth in net income, the company will also see a 6% increase in free cash flow over that time period.
How much revenue does LabCorp generate?
LabCorp generated $17.2 billion in revenue in 2018, up from $15.0 billion the year before.
In 2017, LabCorp generated $13.0 billion in revenue, up from $11.0 billion the year before that.
LabCorp’s highest-ever annual revenue was recorded back in 2016 when it generated $12 million dollars of sales—a growth of 7% compared to 2015’s figure of 11 million dollars (equivalent).
Learn more about this big US laboratory testing company.
LabCorp is the largest clinical lab testing company in the US. They have a large network of labs, doctors, and patients.
The company was founded in 1979 by Harry Lefrak and David Straus. The current CEO is Mark Parrish who has been with LabCorp for over 30 years as CEO or COO (Chief Operating Officer).
Conclusion
We hope you enjoyed learning more about LabCorp. If you have any questions, please feel free to leave them in the comments below.
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