LabCorp CEO Sketches Out Esoteric Testing Horizon

By Kirell Lakhman

LabCorp has “great opportunity for expansion of what we do in pharmacogenetics and pharmacogenomics,” but the industry “shouldn’t expect that to [happen] next week [because such tests] take a long time to develop,” according to CEO David King.

"What I think we should more generally focus on in esoteric testing is, ‘What are the things that are out there that are going to get into physician guidelines?’” he said.

King’s comments, made this morning during a presentation at Piper Jaffray’s annual health-care conference, could best be savored with a side of acquisitive speculation: In October I wrote that LabCorp has been floating hints that it could be interested in buying a clinical lab or technology — possibly from overseas — to strengthen its esoteric play. If this is the case, King’s Jaffray spiel could shed light on a potential target.

After his presentation, he was asked by a Jaffray analyst what opportunities LabCorp sees in clinical phramacogenomic testing, and how the discipline could affect the company’s broader esoteric business.

“One never knows what, exactly, is going to grow,” said King. “So the most important thing for us is to keep a robust pipeline of esoteric tests [and] to be out in the marketplace looking at new tests.”

Offering one example, King said there is “a lot going on in oncology,” and singled out KRAS testing for colorectal cancer in general and the HERmark breast-cancer assay LabCorp attained when it acquired Monogram Biosciences in August.

He said KRAS testing “is up dramatically” since a presentation at this year’s ASCO conference urged physicians to perform KRAS testing on all colorectal cancer patients before considering treating them with the monoclonal antibody Erbitux.

He also said SNP microarrays and next-generation sequencing “are all opportunities that are out there that will have an impact over the next several years.”