Laboratory Corporation of Americas Holdings (LH - Free Report) , popularly known as LabCorp, has announced the extension of its existing partnership agreement with Aetna (AET - Free Report) . Of late, the company has been dominating the headlines on its announcement of expanding partnership with UnitedHealthcare, a business of UnitedHealth Group (UNH - Free Report) to continue to serve as UnitedHealthcare’s exclusive national laboratory provider until Jan 1, 2019.
Per the expanded agreement with Aetna, LabCorp will serve as a preferred national laboratory for almost all of the company’s members starting Jan 1, 2019. The extended agreement will provide in-network access to LabCorp’s complete portfolio of laboratory services to over 20 million eligible members.
Collaborations Play a Big Role
LabCorp has strengthened its foothold in the diagnostics space through organic and inorganic means and plans to collaborate with leading companies and academic institutions to offer a wider portfolio of tests. The company continues to increase its scale and competencies in clinical laboratory medicine through acquisitions ranging from routine capabilities to highly esoteric testing.
Among recent alliances, the company’s comprehensive laboratory collaboration with Appalachian Regional Healthcare, an 11-hospital health system in Kentucky and West Virginia, is worth a mention. This apart, the company has expanded its relationship with Mount Sinai to consolidate all of the latter’s reference work and streamline its inpatient labs.
Also, LabCorp’s Covance business recently entered into a strategic technology agreement with GlaxoSmithKline plc (GSK - Free Report) . Under the terms of the agreement, GlaxoSmithKline will use Covance’s Xcellerate Monitoring, Xcellerate Insights, and Xcellerate Clinical Data Hub solutions as a software-as-a-service model.
Other recent partnerships include the one with Thermo Fisher (TMO - Free Report) , which enabled the launch of Thermo Fisher Oncomine Dx target panel for non-small cell lung cancer patients. Also, LabCorp works on developing and operating patient service centers within select Walgreens stores through its drug retailer Walgreens (WBA - Free Report) .
This apart, the company has an important tie-up with Japan-based Sysmex Corporation, a foremost clinical laboratory services provider and Roche, the world's reputed biotech company.
Share Price Performance
Over the past six months, shares of LabCorp have outperformed its industry. The stock has gained 17% compared with the industry’s 0.6% gain.
LabCorp carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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