Labcorp
| Company type | Public |
|---|---|
| Industry | Clinical laboratory services, Diagnostics, Biopharma laboratory services |
| Predecessor | National Health Laboratories Incorporated |
| Founded | 1968 |
| Fate | Spin-off of Fortrea in June 2023 |
| Headquarters | Burlington, North Carolina , United States |
Area served | Worldwide (over 100 countries) |
| Products | Laboratory testing services, oncology diagnostics, HIV genotyping and phenotyping, DNA testing, environmental assessments, wellness evaluations, toxicology panels, pain management testing, drug monitoring, pharmaceutical development support, molecular diagnostics |
Number of employees | Approximately 1,900 (from Genzyme Genetics acquisition in 2010; overall number not specified) (2010) |
| Website | www |
Labcorp Holdings Inc., based in Burlington, North Carolina, stands as a prominent provider of laboratory testing services that support diagnostic and healthcare decision-making processes. Managing one of the most extensive clinical laboratory networks worldwide, Labcorp operates in more than 100 countries, with its core activities centered in the United States.
The company's Diagnostics Laboratories division comprises approximately 2,000 patient service centers and a network exceeding 6,000 in-office phlebotomists across the U.S. This segment delivers a broad range of services including oncology diagnostics, HIV genotyping and phenotyping, employment-related screening, DNA testing for parentage and immigration purposes, environmental assessments, wellness evaluations, toxicology panels, pain management testing, and drug monitoring. Annually, it processes over 160 million tests, with roughly 10% of its revenue derived from U.S. Medicare. Additionally, it provides around 50 different at-home testing options.
The Biopharma Laboratory Services unit supports pharmaceutical development, medical device manufacturers, and diagnostic companies. Notably, in 2023, this segment played a role in the approval of 84% of new drugs and therapeutic products authorized by the Food and Drug Administration.
Labcorp’s Center for Esoteric Testing, located in Burlington, manages the company’s highest volume of specialized testing.
A pioneer in genomic diagnostics utilizing polymerase chain reaction (PCR) technology, Labcorp’s Center for Molecular Biology and Pathology situated in Research Triangle Park, North Carolina focuses on advanced molecular diagnostic services. The company also operates the National Genetics Institute (NGI) in Los Angeles, which specializes in developing PCR-based tests.
1971-2000
In 1971, Revlon acquired DCL BioMedical, a clinical laboratory firm established in 1968 that was renamed National Health Laboratories Incorporated in 1974. By 1977, the company maintained clinical testing laboratories across 13 cities along with auxiliary centers in an additional 15 locations. The acquisition of American Biomedical Corporation in 1978 expanded its footprint into the Southwestern United States and enhanced its data processing capabilities. Following Revlon’s acquisition by Ronald Perelman in 1985, non-core businesses were divested while MacAndrews & Forbes secured a significant ownership stake.
National Health Laboratories went public on the NASDAQ stock exchange in 1988. By the following year, it reported revenues near US$400 million and earnings around US$70 million. The surge in clinical testing demand during the early 1990s fueled further expansion, with revenues reaching approximately US$500 million by 1990. In 1991, the company transitioned its listing from NASDAQ to the New York Stock Exchange.
In June 1992, National Health Laboratories made an unsuccessful bid to acquire Damon Corporation for $260 million; the offer was surpassed by Corning Inc., which purchased Damon for $370 million. By 1993, National Health Laboratories operated 22 principal laboratories.
On March 8, 1994, the company restructured as National Health Laboratories Holdings Inc., a holding entity. That same year it acquired Allied Clinical Laboratories for $204 million after federal investigations into Medicare billing practices lowered the acquisition price.
In April 1995, Hoffmann-La Roche contributed Roche Biomedical Laboratories along with US$186.7 million to National Health Laboratories Holdings in exchange for a 49.9% ownership stake. This transaction created the largest blood-testing organization in the United States. As part of this deal, Perelman received approximately US$100 million. Subsequently, the company was renamed Laboratory Corporation of America Holdings and relocated its headquarters to Burlington, North Carolina.
In July 1998, Labcorp purchased Universal Standard Healthcare’s Michigan laboratory division and took an equity position but terminated their clinical testing service agreement by March 1999.
2000s
In June 2000, Labcorp broadened its laboratory testing operations by acquiring Pathology Medical Laboratories. The following year, in May 2001, it reinforced its regional footprint by purchasing Path Lab Holdings, the largest regional laboratory in New England. That same June, Labcorp added ViroMed to its portfolio, a company specializing in clinical diagnostics such as virology, molecular biology, and tissue banking; however, the Minnetonka facility was shut down in 2013, resulting in workforce reductions.
By the end of 2001, Labcorp had obtained exclusive marketing rights from Myriad Genetics for genomics and proteomics assays targeting conditions like breast cancer, colon cancer, melanoma, and hypertension. In March 2002, Roche completed the sale of its remaining Labcorp shares.
Labcorp pursued global expansion through the acquisition of Dynacare, a Canadian medical laboratory services provider, in May 2002 for $480 million. In January 2003, it further expanded its oncology and genomic diagnostics by acquiring Dianon for $598 million.
Additional acquisitions included US Pathology Labs in February 2005 for $155 million, which enhanced its anatomical pathology and oncology testing capabilities; Esoterix in March 2005 for approximately $150 million, a specialist in reference testing; and Litholink in November 2006, a laboratory focused on kidney stone analysis.
In January 2008, Labcorp acquired Tandem Labs, a contract research organization with expertise in mass spectrometry and pharmacokinetics. The company continued to diversify its diagnostic offerings by purchasing Monogram Biosciences in June 2009 for about $155 million, emphasizing HIV resistance testing.
Throughout the 2000s, these targeted acquisitions significantly broadened Labcorp's diagnostic services portfolio, geographic coverage, and market positioning within the clinical diagnostics sector.
2010s
Labcorp's acquisition of Genzyme Genetics occurred in September 2010 for $925 million cash; this division of Genzyme Corporation included nine laboratories and approximately 1,900 employees. Despite opposition from the FTC, Labcorp acquired assets from the bankrupt Westcliff Medical Laboratory in February 2011.
In June 2011, Labcorp expanded its international laboratory network by acquiring Clearstone, which operated labs across China, France, Singapore, and Canada and included the APOLLO CLPM laboratory protocol system. Later that year in November, Labcorp purchased over 90% of Orchid Cellmark for $85 million; to secure FTC approval, it divested parts of Orchid’s DNA paternity testing business.
Labcorp sold its European biological sampling kit division based in Hamburg to Marken in May 2012. In August of the same year, it enhanced toxicology testing capabilities by acquiring Medtox Scientific for $241 million. The company further extended its clinical outreach by acquiring MuirLab from John Muir Health in September 2013.
November 2014 saw Labcorp acquire LipoScience for $85 million, gaining access to diagnostic tests utilizing nuclear magnetic resonance spectroscopy for cardiovascular risk assessment. The following month it purchased Bode Technology Group, recognized as the largest U.S. forensic DNA testing firm.
A significant milestone was reached in February 2015 with the $6.1 billion acquisition of Covance, markedly expanding Labcorp’s drug development and clinical trial services. In October 2015, it strengthened food and beverage product development and integrity testing through the acquisition of Safe Foods International Holdings.
Labcorp continued expanding specialized testing services by acquiring Pathology Inc. in March 2016, a company focused on reproductive donor testing and women’s health pathology. In September 2016, it acquired Sequenom for $371 million, boosting its presence across Europe and Asia. The next month brought the acquisition of ClearPath Diagnostics located in the Northeastern United States.
Growth persisted with the purchase of Pathology Associates Medical Laboratories (PAML) in May 2017. In September that year, Labcorp acquired Chiltern—a contract research organization—for $1.2 billion and incorporated it into Covance to enhance oncology-related offerings.
In 2019, Labcorp entered the workplace wellness sector by acquiring Wellness Corporate Solutions. These carefully selected acquisitions illustrate Labcorp’s strategic approach to diversifying its portfolio across diagnostics, clinical trials, and specialized testing services to fuel global growth and increase market share.
2020s
Throughout the COVID-19 pandemic, Labcorp played a pivotal role in developing and processing COVID-19 testing. In March 2020, the company secured emergency use authorization from the FDA for its SARS-CoV-2 diagnostic test. By April, Labcorp introduced the first COVID-19 test that enabled sample collection from home. By July 2020, daily test processing had escalated to 165,000, demonstrating substantial operational capacity to meet growing demand.
In December 2021, Labcorp broadened its drug development capabilities by acquiring Toxikon, a contract research organization focused on non-clinical testing. This acquisition strengthened Labcorp’s offerings within the life sciences sector.
February 2022 saw Labcorp purchase Personal Genome Diagnostics for $450 million in cash, with additional earn-out payments potentially reaching $125 million. This move enhanced its genomic testing portfolio by adding liquid biopsy and tissue-based products. Simultaneously, Labcorp forged a long-term partnership with Ascension, one of the largest nonprofit health systems in the U.S., to oversee hospital-based laboratories in ten states and acquire assets from Ascension's outreach laboratory operations—expanding its market presence and global footprint.
In June 2023, Labcorp finalized the spin-off of Fortrea, simplifying its corporate structure to concentrate on core business segments.
In August 2024, Labcorp acquired specific assets from the bankrupt Invitae for $234 million, further strengthening its genetic testing capabilities and solidifying its competitive position within the diagnostics field.
Acquisition history
- Labcorp (Originally established as National Health Laboratories, Inc., 1978; renamed National Health Laboratories Holdings Inc., 1994)
- Labcorp
- Laboratory Corporation of America Holdings (Created in 1995 through the merger of National Health Laboratories Holdings and Roche Biomedical Laboratories)
- National Health Laboratories Holdings Inc.(Merged in 1995)
- Allied Clinical Laboratories, Inc. (1994)
- Roche Biomedical Laboratories, Inc. (1995)
- National Health Laboratories Holdings Inc.(Merged in 1995)
- Universal Standard Healthcare, Laboratory division (1998)
- Pathology Medical Laboratories (2000)
- Path Lab Holdings Inc. (2001)
- ViroMed Inc. (2001)
- Dynacare (2003)
- Esoterix, Inc. (2005)
- Litholink Corporation (2006)
- Tandem Labs (2007)
- Monogram Biosciences (2009)
- Westcliff Medical Laboratory (2010)
- Genzyme Genetics (2010)
- Clearstone (2011)
- Orchid Cellmark (2011)
- Medtox Scientific (2012)
- MuirLab (2013)
- Covance (2015)
- Virtual Center Laboratory B.V. (2002)
- GFI Clinical Services (2005)
- Signet Laboratories, Inc. (2006)
- Medaxial (2014)
- Sciformix Corporation (2018)
- LipoScience (2014)
- Bode Technology Group, Inc. (2014)
- SolutionPoint International, Inc. (2014)
- Safe Foods International Holdings, LLC (2015)
- International Food Network
- The National Food Laboratory
- Pathology Inc. (2016)
- Sequenom (2016)
- ClearPath Diagnostics (2016)
- Pathology Associates Medical Laboratories (2017)
- Chiltern (2017)
- Toxikon (2021)
- Personal Genome Diagnostics (2021)
- Invitae (2024)
- Laboratory Corporation of America Holdings (Created in 1995 through the merger of National Health Laboratories Holdings and Roche Biomedical Laboratories)
- Labcorp
Government overbilling allegations
In 1992, Labcorp became the subject of legal action under Operation Labscam, a federal initiative targeting healthcare fraud. The accusations involved submitting fraudulent Medicare and Medicaid claims for tests that were not requested, as well as billing government programs at rates exceeding those charged to private insurers. To resolve these issues, Labcorp paid $111 million that year and an additional $182 million in 1996 connected to the same allegations.
In February 2023, Labcorp consented to a $19 million payment to settle claims related to False Claims Act violations stemming from improper Medicare billing practices.
Potential conflicts of interest
Labcorp encountered scrutiny in 2012 when it was revealed that the company funded the salaries of genetic counselors working within hospitals and physician offices, prompting concerns about possible conflicts of interest.
Cybersecurity incidents
The company was targeted by the SamSam ransomware attack in July 2018, which led to operational disruptions. However, there was no confirmed compromise of data. The malware was successfully contained by midnight on July 14, 2018.
Issues with paternity testing
Labcorp has faced litigation concerning inaccurate paternity test results, notably in a 2005 case involving Andre Chreky. After investing $200,000 and enduring prolonged legal battles, Chreky disproved a false-positive outcome. Investigations found that only five employees were responsible for reviewing paternity data during intense shifts that demanded rapid decision-making.
Patient data sharing concerns
In 2024, Labcorp was named in a class action lawsuit alleging it permitted Google to access confidential patient information, including appointment specifics and website login credentials.
Workforce and labor issues
Employees have raised objections regarding Labcorp’s emphasis on productivity targets that prioritize volume and speed over quality. Staffing shortages have contributed to employee overextension. The company faced criticism for terminating all staff members during transitions involving hospital laboratory management acquisitions, requiring them to reapply for their positions and resulting in the loss of accrued benefits such as eligibility for Public Service Loan Forgiveness programs at non-profit hospitals.
In 2024, Labcorp declared its intention to "maintain operations in a non-union environment." Following its appointment as laboratory manager for Legacy Health, outsourced laboratory workers unionized with the Oregon Federation of Nurses and Health Professionals.
Aircraft
Labcorp maintains a fleet consisting of twelve Pilatus PC-12 aircraft and one Pilatus PC-24, utilized for nightly flights along the East Coast departing from Burlington–Alamance Regional Airport. Prior to acquiring the PC-12s, the company operated seven Piper PA-31-350 Navajo Chieftains.
Notable employees
- Mark Elliott Brecher, former Chief Medical Officer at LabCorp and Emeritus Professor at the University of North Carolina