The following is a summary of the Laboratory Corporation of America Holdings (LH) Q1 2024 Earnings Call Transcript:

Financial Performance:

• Labcorp's Q1 revenue reached $3.2 billion, a 5% increase from Q1 2023, underpinned by 4% and 8% increases in diagnostics and biopharma revenue respectively.

• Gross margin percentage was positively impacted by increments in biopharma margins.

• The acquisition of Invitae's assets is projected to bring in an annual revenue of $275-300 million, which came at a purchase price of $239 million.

• Future revenue conversion from the current $7.9 billion backlog is expected to be $2.5 billion over the next 12 months.

• Labcorp maintains a strong financial position, with leverage around 2.5 times debt-to-trailing 12 months EBITDA and additional $1 billion capacity within its targeted leverage range.

Business Progress:

• The acquisition of Invitae's assets is expected to boost Labcorp's specialty testing in areas like oncology and rare diseases.

• Launches of key tests across various therapeutic areas, strategic partnerships and acquisitions, as well as the creation of a new holding company, Labcorp Holdings Inc, are significant moves in Labcorp's strategy.

• Business segments showed varied performance, with 7% growth in diagnostic business, while early development business faced slower growth due to cancellations.

• The company is focusing its growth strategy on broadening its specialty diagnostic tests coverage, aiming to outperform their routine testing section.

• Labcorp anticipates an increase in demand for non-human-primate studies within the early development sector and continues to seek opportunities for growth and recovery in this area.

More details: Laboratory Corp of America IR

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