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BURLINGTON, N.C. - Labcorp (NYSE:LH), a prominent $23.5 billion healthcare services provider with over $13.5 billion in annual revenue, announced Tuesday a collaboration with Roche to implement FDA-cleared VENTANA DP 600 and DP 200 slide scanners across its pathology services, according to a company press release. InvestingPro analysis shows the company maintains a strong financial health score of "GOOD," with 7 additional key insights available to subscribers.
The implementation comes as the U.S. faces a projected shortage of nearly 5,700 pathologists by 2030, while diagnostic service demands continue to rise due to an aging population and increasing disease incidence.
The digital pathology technology converts glass slides into high-resolution digital images viewable on conventional PC workstations rather than microscopes. This allows pathologists to analyze and share images from any location, eliminating reliance on physical slides.
"Integrating digital slide scanning into our pathology workflow will help improve accuracy, streamline operations and enable future AI-driven insights," said Marcia Eisenberg, Labcorp’s chief scientific officer.
The technology is expected to improve access to expertise through remote slide sharing, enhance efficiency by eliminating physical slide handling, reduce costs associated with slide transit, and establish a foundation for artificial intelligence integration in pathology workflows.
This initiative expands on Labcorp’s existing relationship with Roche’s digital pathology portfolio for its Oncology business. The company already uses digital pathology technology globally to support clinical trials.
Michael Rivers, life cycle leader for digital pathology at Roche Tissue Diagnostics, stated the collaboration "holds the potential to create new opportunities for highly efficient, timely and effective patient care."
Labcorp employs nearly 70,000 people serving clients in approximately 100 countries and performs more than 700 million tests annually. Trading near its 52-week high of $283.47, the company’s stock has delivered a 28% return over the past year. According to InvestingPro data, the company currently trades at a P/E ratio of 31.15, suggesting it may be overvalued compared to its Fair Value. Discover detailed valuation metrics and comprehensive analysis in the Pro Research Report, available along with 1,400+ other company deep-dives on InvestingPro.
In other recent news, Labcorp has completed its acquisition of select oncology assets from BioReference Health, a subsidiary of OPKO Health. The transaction, valued at up to $225 million, involved an initial payment of $192.5 million, with the potential for an additional $32.5 million based on future performance. Labcorp has also announced the nationwide availability of the Lumipulse pTau-217/Beta Amyloid 42 Ratio, the first FDA-cleared blood test for Alzheimer’s disease, developed by Fujirebio Diagnostics. This test offers a less invasive diagnostic option for Alzheimer’s by detecting amyloid plaques through a simple blood draw.
In terms of financial performance, Labcorp’s recent quarterly results showed a 1% top-line beat, attributed to a 6% increase in its Base Business segment. Jefferies has raised its price target for Labcorp to $300, maintaining a Buy rating due to these positive results. Evercore ISI also increased its price target to $300, highlighting strong diagnostic growth from both organic sources and acquisitions. Furthermore, Leerink Partners raised its price target to $323, citing impressive earnings across Labcorp’s diagnostics and biopharma laboratory services divisions. These developments indicate a strong performance and positive outlook for Labcorp in the eyes of multiple analyst firms.
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