Advances Labcorp strategy to launch and scale
specialty testing in areas such as oncology and rare
diseases
Transaction requires court approval, with
confirmation expected on May 6,
2024
BURLINGTON, N.C., April 24,
2024 /PRNewswire/ -- Labcorp (NYSE: LH), a global
leader of innovative and comprehensive laboratory services,
announced today that it has been selected as the winning bidder for
select assets of Invitae, a leading medical genetics company.
Before the transaction can proceed, the court overseeing the
process must issue an approval order following a hearing currently
scheduled for May 6, 2024.
Upon completion, Labcorp expects this transaction would generate
approximately $275-$300 million in annual revenue with the vast
majority in specialty testing areas such as oncology and rare
diseases. The purchase price for the transaction is $239 million.
The transaction is anticipated to close in third quarter of
2024, subject to customary closing conditions for a transaction of
this type, including applicable regulatory approvals.
Through this transaction, Labcorp would acquire assets being
auctioned through a voluntary bankruptcy protection process.
Hogan Lovells and Kilpatrick
Townsend are serving as Labcorp's legal counsel.
About Labcorp
Labcorp (NYSE: LH) is a global leader of innovative
and comprehensive laboratory services that helps doctors,
hospitals, pharmaceutical companies, researchers and patients make
clear and confident decisions. We provide insights and advance
science to improve health and improve lives through our
unparalleled diagnostics and drug development laboratory
capabilities. The company's more than 67,000 employees serve
clients in approximately 100 countries, provided support for 84% of
the new drugs and therapeutic products approved in 2023 by the FDA
and performed more than 600 million tests for patients around the
world. Learn more about us at www.Labcorp.com.
About Invitae
Invitae (OTC: NVTA) is a leading medical genetics company
trusted by millions of patients and their providers to deliver
timely genetic information using digital technology. We aim to
provide accurate and actionable answers to strengthen medical
decision-making for individuals and their families. Invitae's
genetics experts apply a rigorous approach to data and research,
serving as the foundation of their mission to bring comprehensive
genetic information into mainstream medicine to improve healthcare
for billions of people. To learn more, visit invitae.com.
Cautionary Statement Regarding Forward-Looking
Statements
This press release contains forward-looking statements,
including but not limited to statements with respect to the terms
of the transaction, its approval by the bankruptcy court, and the
benefits to the company, patients, and physicians if the
transaction is completed.
Each of the forward-looking statements is subject to change
based on various important factors, many of which are beyond the
company's control, including without limitation: (i) the risk that
the transaction may not be completed in a timely manner or at all;
(ii) expected timing to closing; (iii) the failure to satisfy
closing conditions, including the receipt of certain regulatory
approvals; (iv) the occurrence of any event, change or other
circumstance that could give rise to the termination of the
transaction agreements; (v) potential difficulties with employee
retention and employee relations; (vi) competitive actions and
other unforeseen changes and general uncertainties in the
marketplace; (vii) changes in government regulations; (viii)
customer purchasing decisions, including changes in payer
regulations or policies, and increased competition; (ix) other
adverse actions of governmental and third-party payers; (x) changes
in testing guidelines or recommendations; (xi) the impact of global
geopolitical events; (xii) failure to maintain or develop customer
relationships; (xiii) failure in information technology, systems or
data security; (xiv) personnel costs; and (xv) inflation. These
factors, in some cases, have affected and in the future (together
with other factors) could affect the company's ability to implement
the company's business strategy, and actual results could differ
materially from those suggested by these forward-looking
statements. As a result, readers are cautioned not to place undue
reliance on any of the forward-looking statements.
The company has no obligation to provide any updates to these
forward-looking statements even if its expectations change. All
forward-looking statements are expressly qualified in their
entirety by this cautionary statement. Further information on
potential factors, risks and uncertainties that could affect
operating and financial results is included in the company's most
recent Annual Report on Form 10-K and subsequent Forms 10-Q,
including in each case under the heading RISK FACTORS, and in the
company's other filings with the SEC. The information in this press
release should be read in conjunction with a review of the
company's filings with the SEC, including the information in the
company's most recent Annual Report on Form 10-K, and subsequent
Forms 10-Q, under the heading "MANAGEMENT'S DISCUSSION AND ANALYSIS
OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS".
# # #
View original content to download
multimedia:https://www.prnewswire.com/news-releases/labcorp-announces-winning-bid-for-select-assets-of-invitae-302126850.html
SOURCE Laboratory Corporation of America Holdings