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BURLINGTON, N.C. - Labcorp (NYSE: LH), a prominent player in the Healthcare Providers & Services industry with a market capitalization of $18.43 billion and annual revenue of $13 billion, has announced the launch of two oncology products aimed at enhancing cancer treatment and monitoring. According to InvestingPro analysis, the company maintains a strong financial health score, positioning it well for continued innovation in the healthcare sector. The company introduced Labcorp Plasma Detect, a tool for assessing recurrence risk in stage III colon cancer patients, and PGDx elio plasma focus Dx, an FDA-authorized liquid biopsy test for pan-solid tumor identification supporting targeted treatment decisions.
Labcorp Plasma Detect employs whole-genome sequencing to detect circulating tumor DNA (ctDNA) in the blood, which can signal molecular residual disease (MRD) and a higher likelihood of cancer recurrence. This test, which became available for biopharma use in 2024, offers results within 14 days of the initial sample receipt and within seven days for follow-up tests. It is currently under evaluation in over 10 clinical studies for various cancer types and is initially available through an Early Experience Program.
The PGDx elio plasma focus Dx is the first FDA-authorized pan-solid tumor liquid biopsy test of its kind, offering a streamlined process for clinical laboratories and hospitals to retain control over patient specimens. With a 4-to-5-day turnaround time for actionable results, this assay simplifies the process for assessing solid tumors for targeted treatments. The company’s solid operational performance is reflected in its healthy gross profit margin of 27.86%. Discover more detailed financial metrics and exclusive insights about Labcorp with InvestingPro’s comprehensive research reports, available for over 1,400 US stocks.
Labcorp is set to present studies on these new offerings at the AACR 2025 Annual Meeting in Chicago, with its next earnings report scheduled for April 29, 2025. These developments reflect the company’s commitment to advancing cancer diagnostics and improving patient outcomes by providing precise and personalized treatment options. The company’s strategic initiatives align with its strong market position, and InvestingPro data shows it currently trades at Fair Value, suggesting balanced growth potential.
The information is based on a press release statement from Labcorp.
In other recent news, Laboratory Corporation of America, known as Labcorp, has made significant strides in its financial and strategic endeavors. Truist Securities maintains a Buy rating with a $285 price target, following Labcorp’s agreement to acquire oncology-focused laboratory testing assets from BioReference Health for $192.5 million, with potential additional payments. This acquisition is expected to immediately contribute to earnings and aligns with Labcorp’s strategic goals. The assets currently generate approximately $85 million to $100 million in annual revenue, enhancing Labcorp’s oncology and esoteric testing capabilities.
Additionally, Redburn-Atlantic initiated coverage on Labcorp with a Buy rating and a $276 price target, highlighting Labcorp as a top choice in the diagnostics sector due to its valuation and financial position. Redburn-Atlantic forecasts a compound annual growth rate of 3-4% for Labcorp’s diagnostic revenue from 2025 to 2028, anticipating organic and acquisition-driven growth. Meanwhile, Citi analysts upgraded Labcorp’s stock from Neutral to Buy, raising the price target to $300, citing strong utilization rates in the Labs industry and strategic acquisitions.
Labcorp’s recent acquisition of Invitae is expected to impact margins initially but is projected to break even and potentially contribute positively in the future. The company’s robust cash flow and financial flexibility, with $1.01 billion in free cash flow in 2024 and a forecast of up to $1.25 billion for 2025, support its ongoing strategic investments. These developments underscore Labcorp’s strategic positioning and growth potential in the diagnostics and laboratory services market.
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