Laboratory Corporation of America (LabCorp; LH) is one of the largest clinical laboratories in the world and offers more than 4000 routine and specialty tests on more than 370,000 specimens daily for over 220,000 clients nationwide. LabCorp
is a pioneer. It has affiliated itself with some of the most advanced genome research companies in the world and is the direct beneficiary of much of the pioneering research that is being done today. LabCorp is a conduit between the researchers making the discoveries and the actual patient who needs to be tested. In other words, LabCorp helps to make the discovery in the research lab, a reality in your doctor’s office. The company has developed specialty and niche businesses
based on certain types of specialized testing capabilities and client requirements, such as oncology testing, HIV genotyping and phenotyping, diagnostic genetics and clinical research trials. Labcorp’s services are in great demand and are both essential and help provide a cost effective way to control health care costs. This is due to the fact that though testing represents only approximately 4% of health care expenditures, it actually influences more than 70 percent of health care decisions. Health care costs are expected to double over the next decade as the baby boomer generation enters their senior years. LabCorp should be able to grow their business exponentially owing to superior management. We predict that LabCorp will help one practice capital preservation with the prospect of achieving good long term capital appreciation once the markets reverse their current trend.