Leading medical laboratory tests and services provider Laboratory Corp. of America Holdings (LH) recently purchased forensics and DNA analysis services provider Bode Technology Group, Inc., from New York-based security and business intelligence solutions provider SolutionPoint International, Inc. Terms of this financial transaction were kept under wraps.
Lorton, VA-based Bode Technology along with its division Chromosomal Labs is now a wholly-owned subsidiary of LabCorp. As a subsidiary of LabCorp, Bode Technology will continue to offer forensic DNA analysis, DNA collection products and relationship testing services in the international market. They will henceforth work jointly with LabCorp's U.S.- and U.K.-based DNA Identity and Cellmark Forensics businesses.
Under the combined business, the subsidiaries of LabCorp will jointly provide DNA testing services to federal and state governments, law enforcement agencies, crime laboratories, disaster management organizations, and various consumer markets across the globe.
Management at LabCorp is optimistic that this acquisition will enhance the company's range of forensics and DNA identification testing services, thereby bolstering its leadership position in scientific innovation.
Since the beginning of 2014, LabCorp has been making strategic acquisitions to expand its market geographically and diversify its product portfolio while also eyeing a competitive edge in the medical services market.
With this view in mind, LabCorp in early Nov, 2014 decided to take over drug-development company Covance Inc. (CVD) for a total enterprise value of $5.6 million. On completion of this buyout, the two companies will create a new industry leader in both laboratory testing and CRO spaces, to provide more cost-efficient healthcare services by improving the safety and efficacy of drug therapies, enabling accurate patient diagnostics, and advancing evidence-based medicines.
Earlier in September, LabCorp made a definitive agreement to buy LipoScience, Inc., a provider of specialized cardiovascular diagnostic laboratory tests based on nuclear magnetic resonance (NMR) technology, for $5.25 per share in cash, or a transaction value of $85.3 million. Post acquisition, LipoScience's NMR LipoProfile test will allow LabCorp to enhance its innovative clinical decision support programs and also extend a wide range of differentiated knowledge services to physicians and patients.
Currently, both LabCorp and Covance carry a Zacks Rank #3 (Hold). Some other well placed med/dental-supply stocks are Merit Medical Systems, Inc. (MMSI) and AmerisourceBergen Corporation (ABC). While Merit Medical sports a Zacks Rank #1 (Strong Buy), Amerisource holds a Zacks Rank #2 (Buy).
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