Laboratory Corp of America Holdings , a major provider of healthcare diagnostic services, said it would purchase Covance Inc for about $6.1 billion in cash and stock to expand into the contract clinical trial business.LabCorp and larger rival Quest Diagnostics Inc have been under pressure due to cuts in reimbursement rates for certain diagnostic tests and fewer tests being ordered."For LabCorp, the last few years have been challenging with regards to volume and price perspective," Evercore ISI analyst Michael Cherny said. "And so to diversify away to a more pharma-related customer base will help mitigate some of those risks in the long term."Covance's drug development outsourcing services help pharmaceutical companies rein in costs by eliminating the need to maintain in-house laboratories.
Covance Inc. is a drug development services company providing a range of early-stage and late-stage product development services on a worldwide basis primarily to the pharmaceutical, biotechnology and medical device industries. Shares of CVD traded higher by 25.66% or $20.5/share to $100.40. In the past year, the shares have traded as low as $73.57 and as high as $106.50. On average, 431830 shares of CVD exchange hands on a given day and today's volume is recorded at 7160729.
Quest Diagnostics Incorporated (Quest Diagnostics) is a provider of diagnostic testing, information and services, providing insights that enable patients and physicians to make healthcare decisions. Shares of DGX fell by 1.91% or $-1.21/share to $62.25. In the past year, the shares have traded as low as $50.46 and as high as $64.38. On average, 1237970 shares of DGX exchange hands on a given day and today's volume is recorded at 1553952.
Laboratory Corporation of America Holdings is a clinical laboratory company in the United States. Shares of LH fell by 7.08% or $-7.74/share to $101.55. In the past year, the shares have traded as low as $87.01 and as high as $109.47. On average, 569958 shares of LH exchange hands on a given day and today's volume is recorded at 4696608.
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