Yahoo Finance LabCorp's (LH) New APH Lab to Expand Global Capabilities
Laboratory Corporation of America Holdings LH, or LabCorp, recently started to operate at its larger anatomic pathology and histology (APH) laboratory in Los Angeles, CA. This newly developed laboratory expands the company’s global central laboratory capabilities.
LabCorp’s APH service, which is currently the company’s one of the focus areas for global growth, is expected to get a boost with this new development.
More Into the News
The new state-of-the-art laboratory is a dedicated Center of Excellence providing focused APH laboratory testing solutions. Per LabCorp, this laboratory will expand capabilities, including digital pathology, with the use of AI, multiplex immunohistochemistry and other innovative technologies, thereby supporting clinical trials and precision medicine development.
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Further, the lab will help LH advance clinical trials across therapeutic areas like oncology, hemato-oncology and liver diseases. This will also enable the company to increase capacity and enhance the capabilities of the APH service offering, including exploratory biomarkers, fully validated tests, international quality standards and companion diagnostics.
LabCorp's Advancement in APH Testing
This Los Angeles facility will complement the broader global central laboratory and specialty testing capabilities of LabCorp. Additional global growth includes the recent expansions to LabCorp’s APH laboratories in Singapore and Switzerland, as well as the opening of an APH lab section in Japan.
We note that, in 2022, LH enhanced its central laboratory presence and drug development capabilities in Japan by expanding CB Trial Laboratory. This central laboratory is co-managed by LabCorp Drug Development and a renowned Japan-based clinical laboratory testing services provider, BML. Under the collaboration, LabCorp and BML will start working on a new laboratory facility in Kawagoe, Saitama, extending capacity and services for pharmaceutical and biotechnology clients.
In the last reported third quarter, LabCorp completed a comprehensive laboratory relationship with Ascension to manage Ascension’s hospital-based laboratories in 10 states and purchase the select assets of the health system’s outreach laboratory business. This collaboration expands access to LH's comprehensive capabilities and laboratory services for communities served by Ascension.
Share Price Performance
Over the past year, LabCorp has underperformed its industry. Shares of LabCorp have declined 16.4% compared with the industry’s 9.1% fall.
Zacks Rank and Key Picks
LabCorp currently carries a Zacks Rank #3 (Hold). Some better-ranked stocks from the broader medical space are AMN Healthcare Services, Inc. AMN, ShockWave Medical, Inc. SWAV and McKesson Corporation MCK.
AMN Healthcare, carrying a Zacks Rank #2 (Buy) at present, has an estimated long-term growth rate of 3.3%. AMN’s earnings surpassed the Zacks Consensus Estimate in all the trailing four quarters, the average beat being 10.9%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
AMN Healthcare has risen 7.3% against the industry’s 29.2% decline in the past year.
ShockWave Medical, carrying a Zacks Rank #2 at present, has an estimated growth rate of 21.2% for 2023. SWAV’s earnings surpassed estimates in all the trailing four quarters, the average beat being 146.1%.
ShockWave Medical has rallied 28.5% against the industry’s 25% decline over the past year.
McKesson, carrying a Zacks Rank #2 at present, has an estimated long-term growth rate of 10.1%. MCK’s earnings surpassed estimates in two of the trailing four quarters and missed the same in the other two, the average beat being 4.8%.
McKesson has surged 67.1% against the industry’s 9.6% decline over the past year.
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Laboratory Corporation of America Holdings (LH) : Free Stock Analysis Report
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