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Labcorp (LH) Completes Strategic Deal With Jefferson Health
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Labcorp (LH - Free Report) recently announced the completion of a strategic partnership agreement with the Philadelphia-based health system, Jefferson Health (Jefferson). Per the terms of the deal, with the formation of this strategic laboratory relationship, Labcorp will acquire the select assets of Jefferson's outreach laboratory services, while the latter will continue to own and operate existing hospital labs for outpatient and inpatient services.
The collaboration demonstrates Labcorp’s commitment to advancing its laboratory service model with leading academic health systems. Jefferson's longstanding track record of delivering comprehensive diagnostic care to its patients serves well for LH to deliver a complementary and comprehensive suite of laboratory services.
More About the Collaboration
The arrangement between Jefferson and Labcorp will better serve providers and patients throughout the greater Philadelphia and southern New Jersey region — Jefferson’s principal serving areas — by increasing access, the breadth of testing and affordability, as well as enriching the academic prowess and reach of Jefferson Health.
Image Source: Zacks Investment Research
The relationship will also help standardize laboratory testing across the entire health system, creating consistency and optimizing patient care and safety at all locations. Patients and clinicians will benefit from Labcorp's scientific expertise and advanced diagnostics in clinical areas, such as oncology, neurology, autoimmune disease and women's health and have access to LH's convenient at-home test collection services.
Additionally, Labcorp and Jefferson will work together to establish the Innovation Driving Excellence in Academics initiative, which will foster innovation and advance testing capabilities and technologies to improve health outcomes.
Industry Prospects
Per a research report, the global clinical laboratory service market was valued at $217.5 billion in 2022 and is expected to witness a CAGR of 3.2% by 2030.
Strategic Deals to Drive Growth
In recent times, Labcorp has established a relationship with a range of local and regional health systems that have enhanced services for patients and providers. On the first-quarter 2023 earnings call, the company updated that its pipeline for hospital and local lab acquisitions and investments remains robust.
Last week, LH entered into an agreement with Legacy Health to acquire the select assets of its outreach laboratory business, including laboratory facilities and equipment. In June 2023, the company announced a strategic collaboration with Forge Biologics for gene therapy development and manufacturing.
Prior to that, Labcorp entered into an agreement with Providence to acquire select assets of Providence Oregon's outreach laboratory business. The company also enhanced its clinical laboratory testing capabilities in Japan, through an expansion of CB Trial Laboratory which is co-managed by BML, a leading Japanese provider of clinical laboratory testing services.
Price Performance
In the past six months, Labcorp shares have declined 16.4% against the industry’s 11.6% growth.
Haemonetics’ stock has risen 32.2% in the past year. The Zacks Consensus Estimate for Haemonetics’ earnings per share (EPS) has increased from $3.55 to $3.56 for fiscal 2024 and remained constant at $3.96 for fiscal 2025 in the past 30 days.
HAE’s earnings beat estimates in all the trailing four quarters, the average surprise being 12.21%. In the last reported quarter, the company registered an earnings surprise of 13.24%.
The Zacks Consensus Estimate for Zimmer Biomet’s 2023 EPS has remained constant at $7.45 in the past 30 days. Shares of the company have rallied 37.6% in the past year against the industry’s 19.9% decline.
ZBH’s earnings beat estimates in all the trailing four quarters, the average surprise being 7.38%. In the last reported quarter, the company recorded an earnings surprise of 13.86%.
The Zacks Consensus Estimate for SiBone’s 2023 loss per share has narrowed from $1.44 to $1.42 in the past 30 days. SIBN shares have surged 92% in the past year compared with the industry’s 18.3% growth.
SiBone’s earnings beat estimates in three of the trailing four quarters and missed the same once, the average surprise being 11.11%. In the last reported quarter, the company recorded an earnings surprise of 21.95%.
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Labcorp (LH) Completes Strategic Deal With Jefferson Health
Labcorp (LH - Free Report) recently announced the completion of a strategic partnership agreement with the Philadelphia-based health system, Jefferson Health (Jefferson). Per the terms of the deal, with the formation of this strategic laboratory relationship, Labcorp will acquire the select assets of Jefferson's outreach laboratory services, while the latter will continue to own and operate existing hospital labs for outpatient and inpatient services.
The collaboration demonstrates Labcorp’s commitment to advancing its laboratory service model with leading academic health systems. Jefferson's longstanding track record of delivering comprehensive diagnostic care to its patients serves well for LH to deliver a complementary and comprehensive suite of laboratory services.
More About the Collaboration
The arrangement between Jefferson and Labcorp will better serve providers and patients throughout the greater Philadelphia and southern New Jersey region — Jefferson’s principal serving areas — by increasing access, the breadth of testing and affordability, as well as enriching the academic prowess and reach of Jefferson Health.
Image Source: Zacks Investment Research
The relationship will also help standardize laboratory testing across the entire health system, creating consistency and optimizing patient care and safety at all locations. Patients and clinicians will benefit from Labcorp's scientific expertise and advanced diagnostics in clinical areas, such as oncology, neurology, autoimmune disease and women's health and have access to LH's convenient at-home test collection services.
Additionally, Labcorp and Jefferson will work together to establish the Innovation Driving Excellence in Academics initiative, which will foster innovation and advance testing capabilities and technologies to improve health outcomes.
Industry Prospects
Per a research report, the global clinical laboratory service market was valued at $217.5 billion in 2022 and is expected to witness a CAGR of 3.2% by 2030.
Strategic Deals to Drive Growth
In recent times, Labcorp has established a relationship with a range of local and regional health systems that have enhanced services for patients and providers. On the first-quarter 2023 earnings call, the company updated that its pipeline for hospital and local lab acquisitions and investments remains robust.
Last week, LH entered into an agreement with Legacy Health to acquire the select assets of its outreach laboratory business, including laboratory facilities and equipment. In June 2023, the company announced a strategic collaboration with Forge Biologics for gene therapy development and manufacturing.
Prior to that, Labcorp entered into an agreement with Providence to acquire select assets of Providence Oregon's outreach laboratory business. The company also enhanced its clinical laboratory testing capabilities in Japan, through an expansion of CB Trial Laboratory which is co-managed by BML, a leading Japanese provider of clinical laboratory testing services.
Price Performance
In the past six months, Labcorp shares have declined 16.4% against the industry’s 11.6% growth.
Zacks Rank and Other Key Picks
LH currently carries a Zacks Rank #2 (Buy).
Some other top-ranked stocks in the overall healthcare sector are Haemonetics (HAE - Free Report) , Zimmer Biomet (ZBH - Free Report) and SiBone (SIBN - Free Report) , each carrying a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Haemonetics’ stock has risen 32.2% in the past year. The Zacks Consensus Estimate for Haemonetics’ earnings per share (EPS) has increased from $3.55 to $3.56 for fiscal 2024 and remained constant at $3.96 for fiscal 2025 in the past 30 days.
HAE’s earnings beat estimates in all the trailing four quarters, the average surprise being 12.21%. In the last reported quarter, the company registered an earnings surprise of 13.24%.
The Zacks Consensus Estimate for Zimmer Biomet’s 2023 EPS has remained constant at $7.45 in the past 30 days. Shares of the company have rallied 37.6% in the past year against the industry’s 19.9% decline.
ZBH’s earnings beat estimates in all the trailing four quarters, the average surprise being 7.38%. In the last reported quarter, the company recorded an earnings surprise of 13.86%.
The Zacks Consensus Estimate for SiBone’s 2023 loss per share has narrowed from $1.44 to $1.42 in the past 30 days. SIBN shares have surged 92% in the past year compared with the industry’s 18.3% growth.
SiBone’s earnings beat estimates in three of the trailing four quarters and missed the same once, the average surprise being 11.11%. In the last reported quarter, the company recorded an earnings surprise of 21.95%.