BURLINGTON, N.C. – Labcorp (NYSE: LH), a global provider of laboratory services, has received approval from the United States Bankruptcy Court to acquire select assets of Invitae (OTC:), a medical genetics company, as part of Invitae’s Chapter 11 bankruptcy process. The transaction, valued at $239 million in cash plus additional non-cash considerations, is expected to close in the third quarter of 2024, pending customary closing conditions and regulatory approvals.
The acquisition is set to expand Labcorp’s capabilities in specialty testing, particularly in areas such as oncology and rare diseases, enhancing patient care through improved access to genetic information. This move aligns with Labcorp’s strategy to advance its leadership in genetic screening and diagnostics.
Mark Schroeder, Labcorp’s Executive Vice President and President of Diagnostics Laboratories, emphasized the compatibility of Invitae’s genomics-based testing solutions with Labcorp’s business goals. Ken Knight, President and CEO of Invitae, expressed confidence that the transaction would ensure the continued availability of their genetics platform for those who can benefit from it.
Labcorp, known for its diagnostics and drug development services, supports clinical trials and treatment regimens with genetic data utilization, a capability expected to be strengthened by the acquisition. The company’s extensive global reach includes support for a significant portion of FDA-approved drugs and therapeutic products in 2023 and the performance of over 600 million tests for patients worldwide.
The transaction is a key milestone for Invitae, which has been advised by Kirkland & Ellis LLP, Moelis (NYSE:) & Company LLC, and FTI Consulting (NYSE:), Inc. in the Chapter 11 case. Labcorp’s financial advisor for the deal is Citi, with Hogan Lovells and Kilpatrick Townsend providing legal counsel.
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As Labcorp (NYSE: LH) positions itself to enhance its specialty testing capabilities with the acquisition of Invitae’s assets, the financial health and market performance of the company provide a backdrop to this strategic move. Labcorp’s management has demonstrated confidence in the company’s future through aggressive share buybacks, a move that often signals a belief in undervalued stock or a commitment to increasing shareholder value. This aligns with the company’s high shareholder yield, an…
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