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LabCorp Becomes Exclusive Distributor of Myriad s DNA Tests in US

NEW YORK, Dec. 4—Myriad Genetics and Laboratory Corporation of America Holdings announced Tuesday that LabCorp will be the genomics company’s exclusive sales and distribution partner in the US, and will market the company’s DNA-based  tests to its network of more than 200,000 primary care physician customers.

The marketing alliance covers all four of Myriad’s predictive tests, which detect common mutations in order to assess patient risk for hypertension, cardiovascular disease and certain hereditary cancers.

By the terms of the deal, LabCorp will pay an upfront fee of “several million dollars” for the right to market the tests, said a Myriad spokesperson. Myriad will then pay LabCorp a marketing fee for each test sold. Myriad will also perform the sequencing of samples at its molecular diagnostics lab in Salt Lake City.

Myriad will continue to market directly to US oncologists through its own sales force.

The company’s hypertension test costs $295. Its melanoma screen is $745, its colon and uterine cancer test $1,950, and its set of breast cancer tests range from $295 to $2,680.

The LabCorp arrangement will provide greatly expanded access for Myriad’s tests, which generate most of the company’s product-based revenues. This market has grown sharply: in its last quarterly report, Myriad said that product revenues from these tests had surged more than 80 percent over the previous year.

With annual revenues of $1.9 billion in 2000, LabCorp is a mighty force in diagnostic services, processing about 26,000 specimens a day. The company has made significant investments in PCR technology and molecular diagnostics, both in internal research efforts and in agreements with outside partners.

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