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What was announced?
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Covance announced that it is combining with Laboratory Corporation of America® Holdings to create the world’s leading healthcare diagnostics company.
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This announcement is great news for our customers. We get to continue to do what we do for you today with the potential to do even more in the future.
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2.
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Who is LabCorp?
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LabCorp is a leader in commercializing new diagnostic technologies, providing leading-edge medical testing and services through a national network of primary clinical laboratories and specialty testing laboratories.
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LabCorp has 34,000 employees worldwide and more than 220,000 clients that include physicians, government agencies, managed care organizations, hospitals, clinical labs, and pharmaceutical companies.
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It offers more than 4,000 tests ranging from routine blood analyses to reproductive genetics to companion diagnostics.
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3.
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Why is Covance combining with LabCorp?
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As a combined company, Covance and LabCorp will be the leading provider of medical testing as well as the premier full-service drug development organization partnering with clients across a broad continuum from biopharmaceutical research to drug and diagnostic development to commercialization.
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Together, we will leverage technologies that improve patient recruitment for clinical trials, enhance efficiency in the conduct of clinical trials, and deliver data faster to drug sponsors, physicians, and patients.
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Our range of innovative offerings will further advance personalized medicine, improve the development of therapeutics, and enable our pharmaceutical customers to revolutionize drug commercialization.
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Finally, the combined company will leverage the increased scale of our central laboratory operations and collective data resources to drive greater R&D productivity for its clients.
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Together, we will have one of the largest patient databases in the world, which we can leverage to customize treatments and enhance clinical trial design.
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4.
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How will this transaction benefit Covance’s clients?
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This announcement is great news for our customers. We get to continue to do what we do for you today with the potential to do even more in the future.
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Together, the combined company will be the leading provider of medical testing as well as the premier full-service drug development organization that partners with clients across a broad continuum from biopharmaceutical research to drug and diagnostic development to commercialization.
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Our expanded range of innovative offerings will advance personalized medicine, improve the development of therapeutics, and enable our biopharmaceutical customers to revolutionize drug commercialization.
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The combined company will be the world leader in healthcare and medical diagnostics, offering the most complete set of more than 4,600 assays, ranging from routine blood analyses to the largest set of esoteric testing options in the industry. Our offering is strengthened across the board from denovo assay development through global scale up for the largest clinical trials. The combined company will bring our clients unmatched scientific depth and support plus the ability to scale work globally and rapidly.
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The combination of Covance’s market-leading biomarker capabilities with LabCorp’s comprehensive Companion Diagnostics (CDx) capabilities creates a unique partner unmatched in our ability to support the identification, development, validation and implementation of innovative biomarkers and companion diagnostics. Our combined capabilities will help accelerate healthcare’s progress in personalized medicine.
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LabCorp’s leadership and depth in vaccines, diagnostics, anatomic pathology/histology, and genomics strengthen Covance’s existing capabilities in key areas of client interest.
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Complementary global and US locations, production facilities and transportation networks will speed supply distribution, sample collection, and testing results delivery.
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The combined company will leverage the increased scale of its central laboratory operations and collective data resources to drive greater R&D productivity for its clients.
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The combined company will leverage LabCorp’s US sites as well as innovative technologies to improve patient recruitment for trials, conduct clinical trials more efficiently, and deliver data faster to our clients, physicians, and patients.
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The combined company will have an unmatched set of data and leading clinical informatics platform which can be leveraged to reduce the time and cost of healthcare innovation, including the conduct of clinical trials. The combination of Covance’s industry-leading preclinical and clinical submission- ready data with LabCorp’s longitudinal data from more than 75 million patients, can be utilized for predictive informatics and trial management through our proprietary Xcellerate® Informatics Platform.
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There is significant potential to leverage LabCorp’s client base of 220,000 physician offices, hospitals, managed care organizations, clinical investigators, government agencies, and biotechnology and pharmaceutical companies to further clients’ commercialization goals and to support enhanced patient experiences.
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5.
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Will there be changes to my rates/contracts as a result of the transaction?
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We are committed to the continuity of your projects. While we transition company ownership over the next several months, your day-to-day operations, sales, and executive management contacts will stay the same.
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Our commitment to providing talented resources, operational excellence and high quality data remains the foundation of our client focus.
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As we work to create greater efficiencies and synergies we will always look for value that we can pass along to our clients.
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6.
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How will clients of both Covance and LabCorp work with the combined company? Should Covance clients continue to work with the same Covance representative following the transaction?
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We are committed to the continuity of your projects. While we transition company ownership over the next several months, your day-to-day operations, sales, and executive management contacts will stay the same.
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7.
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What will the company be called?
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LabCorp recognizes the value of our brand, which is why the division of the company will continue to do business under the Covance brand you know and trust.
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8.
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Does Covance intend to maintain its operations in all of its service lines?
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Covance does not anticipate changes to its operations as a result of this transaction.
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9.
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What will happen to Covance’s headquarters? Will any facilities close as a result of this transaction?
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Princeton, NJ will be the operating headquarters of the drug development division, which will continue to do business under the Covance brand you know and trust.
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10.
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Who will lead Covance?
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Joe Herring, our CEO will continue to lead the drug development division, which will continue to do business under the Covance brand you know and trust.
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11.
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Will my day-to-day contact change going forward?
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Your day-to-day customer contacts will remain the same, and we expect a seamless transition for existing Covance customers when the transaction closes.
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12.
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What are the next steps? When will the transaction be completed?
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We anticipate the closing of the transaction will occur in the first quarter of 2015.
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Until the transaction closes, we will continue to operate as an independent company and remain focused on business as usual.
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13.
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Where can I find additional information? Who can I contact if I have more questions?
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We will keep you informed of important developments throughout this process.
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If you have additional questions or concerns, please feel free to reach out to your regular Covance contact.
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