NEW YORK (GenomeWeb News) – Laboratory Corporation of America Holdings has acquired Covance's high-complexity genomic laboratory for an undisclosed amount.
Additionally, the companies have entered into a five-year services agreement under which Covance and LabCorp will collaborate to continue offering the Seattle-based laboratory's services to clients.
LabCorp said in its LabCorp Clinical Trials Newsletter that the genomic analysis services offered by the Covance lab include gene expression studies, translational biomarker projects, and next-generation sequencing applications to support drug development work. Covance said it will provide other genomics services to its clients through its central laboratories.
"In addition to global safety and specialty testing services, LabCorp can now offer clients a more comprehensive set of genomic services in earlier stages of drug development," LabCorp said. "The acquisition enhances LabCorp's existing biomarker development and companion diagnostics capabilities and it confirms our commitment to advance our industry-leading genomic services."
LabCorp Chairman, President, and CEO David King said during his firm's fourth quarter earnings conference call that the deal is not anticipated to be material to LabCorp from a revenue or earnings perspective.
King had said at the JP Morgan Healthcare Conference in January that LabCorp was planning to expand its portfolio of genomics-based tests. He highlighted a number of focus areas in line with this strategy, including improved capabilities in laboratory standardization, providing decision support, and the introduction of more next-generation sequencing based tests.