ARTICLE | Company News

Covance, LabCorp deal

November 10, 2014 8:00 AM UTC

Diagnostic company LabCorp will acquire CRO Covance for $105.12 per share, or $5.9 billion based on 56.6 million shares outstanding at Oct. 24. For each share held, Covance shareholders will receive $75.76 in cash and 0.2686 LabCorp shares, valued at $29.36 based on LabCorp's close of $109.29 on Oct. 31, before the deal was announced. The deal gives Covance shareholders about 15.5% of the combined company when the deal closes in 1Q15. For the first nine months of 2014, Covance reported net revenues of $1.9 billion while LabCorp reported $4.5 billion.

On a conference call, LabCorp Chairman and CEO David King said the combined company will offer medical testing, drug and diagnostics development and commercialization services. He said pharma customers seeking Covance's CRO services will have access to LabCorp's patient database and patient portal for clinical trial recruitment, and that Covance's risk-based monitoring (RBM) tools to manage clinical trial performance and outcomes would enhance LabCorp's predictive analytics. King will remain chairman and CEO of the combined company, while LabCorp CFO Glenn Eisenberg will remain CFO. Covance Chairman and CEO Joe Herring will head LabCorp's Covance division. ...