Labcorp (LH) 44th Annual J.P. Morgan Healthcare Conference summary

Strategic focus and growth areas

• Focused on oncology, women's health, autoimmune, and neurology, launching over 100 tests in 2025, with these areas expected to outpace the diagnostic market growth by 2-3x.

• Completed 13 hospital and regional lab acquisitions in 2025, strengthening specialty capabilities and expanding market presence.

• Integration of Invitae was highlighted, making it accretive by Q3 2025 and enabling the launch of new MRD liquid biopsy tests for multiple cancers.

• Specialty and hospital acquisitions are expected to drive growth faster than the overall market.

• AI and automation advancements in labs, including Global Trial Connect, are enhancing operational efficiency and clinical trial support.

Market trends and business fundamentals

• Organic diagnostic revenue growth target set at 4.5% for the year, with utilization trends remaining strong due to demographics and increased chronic illness.

• Higher tests per requisition, especially in specialty areas, are driving organic growth, while unit pricing remains flat.

• Managed care and payer relationships are strong, with hospital deals helping to keep prices stable and reduce overall healthcare costs.

• Consumer demand for health and functional testing is rising, with over 100 OnDemand tests now available.

M&A, capital allocation, and financial discipline

• M&A pipeline remains robust, with a focus on hospital deals and strategic acquisitions in core therapeutic or geographic areas.

• Deals are expected to be accretive in year one and return cost of capital in 2-3 years; capital deployment is balanced between reinvestment and shareholder returns.

• Strong balance sheet with financial leverage below target range, providing capacity for future investments.