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LabCorp, Philips Tie Up to Advance in Digital Pathology

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Laboratory Corporation of Americas Holdings (LH - Free Report) , popularly known as LabCorp, recently collaborated with Royal Philips (PHG - Free Report) . The terms of the deal have been kept under wraps. Through the collaboration, LabCorp plans to implement Philips’ IntelliSite Pathology Solution and incorporate digitized workflows within its anatomic pathology services.

LabCorp will begin the system implementation in four of its laboratories. Notably, theIntelliSite Pathology Solution is an automated digital pathology image creation, viewing and management system. It also contains updated software tools to manage the scanning, storage, presentation, reviewing and sharing of images.

This system provides pathologists with enhanced turnaround times and also aids in precise analysis of tissue samples. Further, it is the only digital pathology solution available for primary diagnostic use in the United States.Thus, LabCorp aims at improving collaboration between its pathologists and customers and increase efficiency with the implementation of the system.

Share Price Performance

Over the past six months, shares of this Zacks Rank #3 (Hold) company have outperformed its industry. The stock has gained 10.1% compared with the industry’s 0.2%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Strategic Collaborations Boost LabCorp

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.

Among recent alliances, LabCorp collaborated with Unilabs to increase access to commercialization channels for companion diagnostics in North America and Europe. The company has also announced the extension of its existing partnership agreement with Aetna (AET - Free Report) .

Of late, LabCorp has been dominating the headlines with the announcement of expanding partnership with UnitedHealthcare, a business of UnitedHealth Group (UNH - Free Report) . Through this, LabCorp will serve as UnitedHealthcare’s exclusive national laboratory provider till Jan 1, 2019.

Further, LabCorp’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.

Other recent partnerships include the one with Thermo Fisher, 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 Boots.

Market Potential

Per a report by MarketsandMarkets, the global digital pathology market is expected to see a CAGR of 12.3% between 2017 and 2022. Considering the bountiful opportunities in this niche, the company’s latest development seems to be strategically aligned.

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