UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
(Date of earliest event reported)
(Exact Name of Registrant as Specified in its Charter)
| (State or other jurisdiction of Incorporation) | (Commission File Number) | (I.R.S. Employer Identification No.) | ||||||||||||
| (Address of principal executive offices) | (Zip Code) | ||||||||||
(Registrant’s telephone number including area code) 336 -229-1127
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
| Written communication pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | |||||
| Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | |||||
| Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | |||||
| Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) | |||||
Securities registered pursuant to Section 12(b) of the Exchange Act.
Title of Each Class Trading Symbol Name of exchange on which registered
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
| Item 7.01 | Regulation FD Disclosure | ||||
On September 14, 2023, Laboratory Corporation of America Holdings, Inc. (the “Company”) is hosting an Investor Day. A copy of the presentation displayed during the Investor Day webcast is furnished as Exhibit 99.2 to this Current Report on Form 8-K and is incorporated herein by reference.
The information in this Current Report on Form 8-K (including the exhibits attached hereto) shall not be deemed “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that Section. The information in this Current Report on Form 8-K (including the exhibits attached hereto) shall not be deemed incorporated by reference into any filing or other document under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such filing or document.
| Item 9.01 | Financial Statements and Exhibits. | |||||||
| Exhibit | Exhibit Name | |||||||
Exhibit 99.1* | ||||||||
Exhibit 99.2* | ||||||||
| Exhibit 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) | |||||||
* Furnished herewith | ||||||||
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
LABORATORY CORPORATION OF AMERICA HOLDINGS
Registrant
| By: | /s/ SANDRA VAN DER VAART | |||||||
| Sandra van der Vaart | ||||||||
| Executive Vice President, Chief Legal Officer and Corporate Secretary | ||||||||
Labcorp Contacts:
Christin O'Donnell (investors) — 336-436-5076
Investor@Labcorp.com
Kimbrel Arculeo (media) — 336-436-8263
Media@Labcorp.com
Labcorp to Present Strategy, Business and Financial Outlook at Investor Day
BURLINGTON, N.C., September 14, 2023 — Labcorp (NYSE: LH), a global leader of innovative and comprehensive laboratory services, is hosting an Investor Day beginning at 1:00 p.m. ET today in New York City, expected to conclude by approximately 4:00 p.m. ET. The event will highlight Labcorp’s go-forward strategy from Labcorp Chairman & CEO Adam Schechter, followed by business overviews and a longer-term financial outlook by members of the leadership team.
“Labcorp is the world’s largest laboratory service provider focused on science, technology and innovation,” said Adam Schechter, chairman and CEO of Labcorp. “Today, we are excited to share our roadmap for strong growth and shareholder value across Diagnostic Laboratories and Biopharma Laboratory Services. We believe that our focus on customers and our ability to execute with scale and operational excellence will drive strong profitable growth and further differentiate Labcorp.”
Webcast Information
A live webcast of the event will be available through the Labcorp Investor Relations website beginning at 1:00 p.m. ET. A replay of the webcast and a copy of presentation materials will be available on the Investor Relations section of the Company’s website at https://ir.labcorp.com.
About Labcorp
Labcorp (NYSE: LH) is a global leader of innovative and comprehensive laboratory services that helps doctors, hospitals, pharmaceutical companies, researchers and patients make clear and confident decisions. We provide insights and advance science to improve health and improve lives through our unparalleled diagnostics and drug development laboratory capabilities. The company's more than 60,000 employees serve clients in over 100 countries, worked on over 80% of the new drugs approved by the FDA in 2022 and performed more than 600 million tests for patients around the world. Learn more about us at www.labcorp.com.
Cautionary Statement Regarding Forward-Looking Statements
This press release contains forward-looking statements, including but not limited to statements with respect to the company’s expectations and and opportunities for future growth.
Each of the forward-looking statements is subject to change based on various important factors, many of which are beyond the company's control. These factors, in some cases, have affected and in the future (together with other factors) could affect the company's ability to implement the company's business strategy and actual results could differ materially from those suggested by these forward-looking statements. As a result, readers are cautioned not to place undue reliance on any of the forward-looking statements.
The company has no obligation to provide any updates to these forward-looking statements even if its expectations change. All forward-looking statements are expressly qualified in their entirety by this cautionary statement. Further information on potential factors, risks and uncertainties that could affect operating and financial results is included in the company's most recent Annual Report on Form 10-K and subsequent Forms 10-Q, including in each case under the heading RISK FACTORS, and in the company's other filings with the SEC. The information in this press release should be read in conjunction with a review of the company's filings with the SEC including the information in the company's most recent Annual Report on Form 10-K, and subsequent Forms 10-Q, under the heading MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS.
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©2023 Laboratory Corporation of America® Holdings. All rights reserved. Investor Day September 14, 2023 S E P T E M B E R 2 0 2 3
2©2023 Laboratory Corporation of America® Holdings. All rights reserved. Cautionary statement regarding forward-looking statements This presentation may contain forward-looking statements, including, but not limited to, statements with respect to (i) the estimated 2023 guidance and the longer-term financial outlook and related assumptions of each, (ii) the recently completed spin-off of the company’s Clinical Development and Commercialization Services business, now Fortrea Holdings Inc., including statements regarding the expected benefits from the spin-off and the company’s ability to realize such benefits, the tax treatment of the spin-off, and opportunities for future growth resulting from the spin-off; (iii) the impact of various factors on operating and financial results, operating results, cash flows and/or financial condition, as well as general economic and market conditions, (iv) future business strategies, (v) expected savings and synergies (including from the LaunchPad initiative and from acquisitions and other transactions), and (vi) opportunities for future growth. Each of the forward-looking statements is subject to change based on various important factors, many of which are beyond the company's control, including without limitation, (i) the failure to receive tax-free treatment with respect to the spin-off for U.S. federal income purposes; (ii) potential difficulties with employee retention; (iii) the trading price of the company's stock, competitive actions and other unforeseen changes and general uncertainties in the marketplace; (iv) changes in government regulations, including healthcare reform; (v) customer purchasing decisions, including changes in payer regulations or policies; (vi) other adverse actions of governmental and third-party payers; (vii) changes in testing guidelines or recommendations; (viii) federal, state, and local government responses to the COVID-19 pandemic; (ix) the impact of global geopolitical events; (x) the effect of public opinion on the company's reputation; (xi) adverse results in material litigation matters; (xii) the impact of changes in tax laws and regulations; (xiii) failure to maintain or develop customer relationships; (xiv) the company's ability to develop or acquire new products and adapt to technological changes; (xv) failure in information technology, systems, or data security; (xvi) the impact of potential losses under repurchase agreements; (xvii) adverse weather conditions; (xviii) the number of revenue days in a financial period; (xix) employee relations; (xx) personnel costs; (xxi) inflation; (xxii) increased competition; and (xxiii) the effect of exchange rate fluctuations. These factors, in some cases, have affected and in the future (together with other factors) could affect the company's ability to implement the company's business strategy, and actual results could differ materially from those suggested by these forward-looking statements. As a result, listeners are cautioned not to place undue reliance on any of the forward-looking statements. The company has no obligation to provide any updates to these forward-looking statements even if its expectations change. All forward-looking statements are expressly qualified in their entirety by this cautionary statement. Further information on potential factors, risks and uncertainties that could affect operating and financial results is included in the company's most recent Annual Report on Form 10-K and subsequent Forms 10-Q, including in each case under the heading RISK FACTORS, and in the company's other filings with the SEC. The information in this presentation should be read in conjunction with a review of the company's filings with the SEC including the information in the company's most recent Annual Report on Form 10-K, and subsequent Forms 10-Q, under the heading “MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS”.
3©2023 Laboratory Corporation of America® Holdings. All rights reserved. Today’s agenda Adam SchechterPoised for Strong Growth Mark Schroeder, Bryan Vaughn, Mary Williamson, PhD.Diagnostics Laboratories Jon DiVincenzo, Maryland Franklin, PhD.Biopharma Laboratory Services BREAK Brian Caveney, MD., Lance BerberianScience, Innovation and Technology Glenn EisenbergFinancial Outlook All SpeakersQ&A
4©2023 Laboratory Corporation of America® Holdings. All rights reserved. Poised for Strong Growth Adam Schechter Chairman and Chief Executive Officer
Our work helps enable clear, confident decisions for patients, healthcare providers and biopharmaceutical companies to improve health and improve lives
6©2023 Laboratory Corporation of America® Holdings. All rights reserved. Labcorp is the largest laboratory service provider in the world P O I S E D F O R S T R O N G G R O W T H Leaders in science, technology and innovation focused on patient outcomes Driving profitable growth to generate consistent shareholder value Operating at scale with significant growth opportunities before us Two complementary business segments that are leaders with substantial operating efficiencies
7©2023 Laboratory Corporation of America® Holdings. All rights reserved. Labcorp is a mission driven, global laboratory services leader P O I S E D F O R S T R O N G G R O W T H Our mission Improve health, improve lives 100+ Countries where we support patients 6,500+ Unique tests available 600M+ Tests performed annually 600+ Scientific publications annually 45B+ Lab results in proprietary data sets 100% of large pharma partner with Labcorp
More than 50 years of healthcare laboratory services and innovation P O I S E D F O R S T R O N G G R O W T H Market leadership across core laboratory service businesses Biopharma Laboratory Services (“BLS”) Diagnostics Laboratories ©2023 Laboratory Corporation of America® Holdings. All rights reserved.
Strong leadership team with significant experience to lead Labcorp forward P O I S E D F O R S T R O N G G R O W T H 9©2023 Laboratory Corporation of America® Holdings. All rights reserved. Sandra (Sandy) van der Vaart EVP, Chief Legal Officer, Chief Compliance Officer and Corporate Secretary Jon DiVincenzo EVP and President, Central Laboratories and International Lance Berberian EVP and Chief Information and Technology Officer Mark Schroeder EVP and President, Diagnostics Laboratories and Chief Operations Officer Megan Bailey EVP and Chief Strategy and Transformation Officer Amy Summy EVP and Chief Marketing Officer Brian Caveney EVP and President, Early Development and Chief Medical and Scientific Officer Adam Schechter Chairman, President, and Chief Executive Officer Glenn Eisenberg EVP and Chief Financial Officer Anita Graham EVP and Chief Human Resources Officer
10©2023 Laboratory Corporation of America® Holdings. All rights reserved. Recognized as a leading employer Our strong talent is a key differentiator P O I S E D F O R S T R O N G G R O W T H 60,000+ employees phlebotomists 15,000+ PhDs / MDs 1,200+
11©2023 Laboratory Corporation of America® Holdings. All rights reserved. We are a market leader, operating at scale with significant growth opportunities P O I S E D F O R S T R O N G G R O W T H Therapeutic advancement in complex disease states Earlier detection and diagnosis Precision medicine & companion diagnostics (CDx) Rapid innovation in testing and diagnostic capabilities Strong Underlying Trends
12©2023 Laboratory Corporation of America® Holdings. All rights reserved. Strong revenue growth opportunities exist across business segments P O I S E D F O R S T R O N G G R O W T H Central Labs BLS $2.8B Diagnostics $9.3B FY23 revenue guidance midpoint by segment1 Early Development $12.1B Long term revenue outlook (2026 vs 2023 CAGR) Acquisition Labcorp Enterprise: 5.0% - 8.0% Organic: 3.5% - 5.5% Acquisition: 1.5% - 2.5% 1. Midpoint of guidance issued on July 27, 2023; see appendix for more information
13©2023 Laboratory Corporation of America® Holdings. All rights reserved. Partner of choice for health systems & local / regional laboratories Lead in the development, licensing, & scaling of specialty testing including companion diagnostics Two significant growth opportunities across biopharma and diagnostic laboratory service businesses We have a clear roadmap for near-term sustainable growth P O I S E D F O R S T R O N G G R O W T H 1 2
14©2023 Laboratory Corporation of America® Holdings. All rights reserved. Winning in health systems P O I S E D F O R S T R O N G G R O W T H Large market opportunity with favorable trends for Labcorp 12 health system deals over the past three years1 Continuing consolidation among hospitals and health systems Transition to value-based care Poised to drive further value for health systems Portfolio of unique data and analytics solutions Innovative product offerings Track record of success Industry leading test portfolio and national presence 1. Includes announced or closed deals from 2021 to August 2023
15©2023 Laboratory Corporation of America® Holdings. All rights reserved. Labcorp will outpace the specialty market growth in the coming years P O I S E D F O R S T R O N G G R O W T H 1. Women's Health focused on Reproductive Genetics, Maternal Health and Hereditary Cancer 2. Autoimmune focused on Rheumatology Source: 'Clinical Laboratory Services Market', 7th Edition, 'The World Market for Cancer Diagnostics' Four specialty focus areas driving future growth Oncology Women’s Health1 Autoimmune2 Neurology Key capabilities supporting growth Broad Portfolio - “One stop for all Dx needs” Ease of collection - largest network of access points Synergy with health system business and growing CDx business More than 50% of clinical trials are in specialty area Specialty focus areas anticipated to grow at 9% CAGR
16©2023 Laboratory Corporation of America® Holdings. All rights reserved. Significant precision medicine and CDx capabilities – oncology example P O I S E D F O R S T R O N G G R O W T H Registry program to expand access to comprehensive genomic profiling Notable recent launches: • Labcorp® Plasma Focus™ - liquid biopsy test that targets actionable genes for advanced solid tumors • HER2 low test - IHC breast cancer test Oncology represents approximately 40% of Central Labs net orders Science Pharma discovery Clinical trials lab support Diagnostics New therapies to patients Early Development work including companion diagnostics
17©2023 Laboratory Corporation of America® Holdings. All rights reserved. Increasing our focus in future potential growth opportunities P O I S E D F O R S T R O N G G R O W T H Accelerate leadership and partnership capabilities in Cell & Gene Therapy (C>) Expand consumer- centric capabilities Leverage global laboratory network for targeted international expansion
Uniquely positioned to be the laboratory of choice for Cell & Gene Therapy P O I S E D F O R S T R O N G G R O W T H 18©2023 Laboratory Corporation of America® Holdings. All rights reserved. Shift towards C> across biopharma landscape ~15% Growth in C> market across biopharma >2k Clinical trials in C> globally~20% of all biopharma drug pipeline CAPABILITIES TO BE SUCCESSFUL Scientific expertise Unparalleled logistics and manufacturing partnerships Strong and growing infrastructure
Consumerism trends represent new opportunities for growth P O I S E D F O R S T R O N G G R O W T H 19©2023 Laboratory Corporation of America® Holdings. All rights reserved. Building upon our current consumer reach 160M+ Labcorp interactions with consumers per year Digitized Patient Journey Across service centers and broader platform Labcorp OnDemand 50+ health and wellness tests online and growing rapidly
Launch targeted specialty diagnostics in international markets P O I S E D F O R S T R O N G G R O W T H Growing pipeline of specialty testing >$500M FY2022 Central Labs net orders covering companion diagnostics 150+ Studies in Pipeline with a CDx component Countries Where We Have An Impact Countries with Physical Presence 20©2023 Laboratory Corporation of America® Holdings. All rights reserved.
21©2023 Laboratory Corporation of America® Holdings. All rights reserved. Our focus and strategy lead to sustainable growth P O I S E D F O R S T R O N G G R O W T H Delivering value and capital to our shareholders $14B+ by 2026 5% - 8% revenue growth1 100 - 150 bps of margin expansion from 2023-2026 8.5% - 11.5% total adjusted EPS growth1 Annual free cash flow growth in line with adjusted earnings growth 2023 – 2026 Outlook: 1. 2026 CAGR vs 2023
22©2023 Laboratory Corporation of America® Holdings. All rights reserved. Key takeaways P O I S E D F O R S T R O N G G R O W T H We have the right roadmap to accelerate near and long-term growth Strong underlying market trends to capitalize on our strategy Our people and strong science, innovation & technology differentiate us Improve health, improve lives We will drive profitable growth to generate consistent shareholder value
23©2023 Laboratory Corporation of America® Holdings. All rights reserved. Diagnostics Laboratories Mark Schroeder President Diagnostics Laboratories and Chief Operations Officer Bryan Vaughn SVP Health Systems Mary Williamson, PhD VP Laboratory Operations
24©2023 Laboratory Corporation of America® Holdings. All rights reserved. A market leader positioned for continued growth D I A G N O S T I C S L A B O R A T O R I E S Hospital Labs, 60% Physician Office Labs, 5% Other Labs, 26% ~$85B Diagnostics Market Positioned for growth with focused expansion through health systems and specialty testing Note: 2022 North American market opportunity Source: Labcorp market analysis intelligence 9%
25©2023 Laboratory Corporation of America® Holdings. All rights reserved. Our growth strategy is supported by favorable market trends D I A G N O S T I C S L A B O R A T O R I E S • Managed care reimbursement • Regulatory policies, e.g., PAMA, SALSA, LDT regulation Reimbursement • Specialty testing and scientific developments • Rise in personalized medicine and CDx testing • Health system lab partnerships expand access to specialty testing • Increase in tests per accession Mix • Health systems continuing to outsource their laboratory business • Return of deferred healthcare • Patient centricity and omni-channel healthcare delivery • Comprehensive testing options Volume
26©2023 Laboratory Corporation of America® Holdings. All rights reserved. Strong financial profile with a track record of success D I A G N O S T I C S L A B O R A T O R I E S 2023 – 2026 outlook: Organic revenue growth of 2.5% - 4.5% FY 2022 Base business revenue by payer mix Clients1 PatientsMedicare and Medicaid2Third Parties $7.0 $6.5 $7.6 $8.1 $9.2 2019 2020 2021 2022 2023 Guidance Midpoint Base business revenue growth ($B) Note: Midpoint of guidance issued on July 27, 2023; see appendix for more information 1. Revenue related to physicians, hospitals, health systems, accountable care organizations, employers and other entities where the payment is received exclusively from the entity ordering the service. 2. Revenue related to traditional Medicare and Medicaid programs. Reimbursement from Medicare Advantage and Medicaid Managed Care plans are reflected in Third Parties. 30% 11% 11% 48%
Multiple access points designed to meet patients wherever they live D I A G N O S T I C S L A B O R A T O R I E S Canada Multiple Access Points I Broad Coverage I Convenience Access points per 100,000 lives ©2023 Laboratory Corporation of America® Holdings. All rights reserved.
28©2023 Laboratory Corporation of America® Holdings. All rights reserved. Leveraging scale, quality, and access D I A G N O S T I C S L A B O R A T O R I E S • Proprietary robotics and automation technologies • Extensive logistics fleet and global supply chain • Proprietary AccuDraw® technology • ~45B test results to inform reference ranges Extensive scale Market-leading quality • Thousands of convenient access points • Multiple channels of patient engagement Broad access Labcorp is an industry-leading partner for patient care Clinical decision reports Gaps in care identification & testing Population health metrics Companion & complementary diagnostics Clinical trial recruitment
29©2023 Laboratory Corporation of America® Holdings. All rights reserved. A patient-first mentality is core to our culture D I A G N O S T I C S L A B O R A T O R I E S Our culture recognizes that every specimen represents a life Donna Lab Tech 30 years with Labcorp Relentless focus on patient care led to the first documented link of an autoimmune marker with a neurological condition, justifying use of the marker in a more comprehensive spectrum of symptoms Doris Phlebotomist 26 years with Labcorp Leading with compassion and skill to calm pediatric patients. Alleviating both mom and child's nerves, mom will always pick Labcorp in the future Nicolas Courier 15 years with Labcorp Understands that each tube of blood represents the life of a real patient and appreciates the responsibility of transporting each of these “patients” safely to their destination
30©2023 Laboratory Corporation of America® Holdings. All rights reserved. Key takeaways D I A G N O S T I C S L A B O R A T O R I E S The Diagnostics market is strong, and Labcorp is poised to grow our leadership position Our science, innovation & technology along with scale serve as the foundation to our success Our access and patient-centric talent positively impact patient care Improve health, improve lives We will continue to grow with a focus on specialty testing and health systems
31©2023 Laboratory Corporation of America® Holdings. All rights reserved. Significant potential in our holistic approach to health systems D I A G N O S T I C S L A B O R A T O R I E S – H E A L T H S Y S T E M S Largest 250 Health Systems Target Health System Partners Academic Medical Centers Outreach Lab Business Interest in Long-Term Strategic Partnerships Laboratory management services Reference testing Outreach partnership Strategic Health System Partner Health Plan Relationships Value-Based Care Programs Gaps in Care Programs Lab Stewardship Solutions Data and Analytic Tools Consumer Offerings Population Health Solutions Academic Collaboration
32©2023 Laboratory Corporation of America® Holdings. All rights reserved. Strong momentum with track record of successful partnerships D I A G N O S T I C S L A B O R A T O R I E S – H E A L T H S Y S T E M S 2020 2021 2022 2023 We are the long-term partner of choice Lab management expertise, strong benchmarking and lab stewardship Innovative specialty testing and data technologies Integration excellence Hospital Renewal Renewal 1 1 1. Announced transactions, subject to customary closing conditions and applicable regulatory approvals Notable partnerships
33©2023 Laboratory Corporation of America® Holdings. All rights reserved. When you really concentrate on expertise and leverage a partner that owns their space, you can elevate the quality of care that you deliver. [Laboratory medicine] is Labcorp’s expertise – they are world-renowned for it – and it has been a phenomenal partnership [that] provides so much benefit to the organization and to our patients, ultimately. — Sally Deitch Executive Vice President at Ascension “ ” Case study: Ascension D I A G N O S T I C S L A B O R A T O R I E S – H E A L T H S Y S T E M S At a Glance: Ascension + Labcorp Partnership Included 4,700 laboratory employees Across 91 hospital labs in 10 states Opened 2 new labs in MI and WI Initial cost savings on track Improved inpatient KPIs MoM >96% TAT Outreach turnaround time
34©2023 Laboratory Corporation of America® Holdings. All rights reserved. Health system momentum drives further innovation D I A G N O S T I C S L A B O R A T O R I E S – H E A L T H S Y S T E M S Building on quality and service, we continuously innovate with health system partners The recognized partner of choice for health systems Deliver highest- quality laboratory services Win new health system customers & expand reach Further differentiated technology, science & capabilities Capabilities strengthened by health system wins 3. Expanding Access to Innovative Diagnostics Accessing innovative oncology portfolio 1. Hospital Laboratory Benchmarking Data from more than 200 managed hospital labs 2. Purpose-Built Population Health Tools Accessing community level lab results
Spokane, WA San Francisco, CA Calabasas, CA Los Angeles, CA San Diego, CA Phoenix, AZ Santa Fe, NM Denver, CO San Antonio, TX Houston, TX Oklahoma City, OK Southaven, MS Brentwood, TN Atlanta, GA St. Paul, MN Itasca, IL Burlington, NC RTP, NC Baltimore, MD Shelton, CT Westborough, MA Buffalo, NY Seattle, WA Dallas, TX Birmingham, AL Tampa, FL Dublin, OH Raritan, NJ Troy, MI Oak Creek, WI Hollywood, FL Austin, TX Knoxville, TN San Carlos, CA Indianapolis, IN Greenfield, IN Ann Arbor, MI Bedford, MA Chantilly, VA Best-in-class global lab operations D I A G N O S T I C S L A B O R A T O R I E S – L A B O P E R A T I O N S Leading Technologies Geneva, Switzerland Mechelen, Belgium Harrogate, U.K. York, U.K. Shardlow, U.K. Huntingdon, U.K. Eye, U.K. Münster, Germany Europe Labs qualified for both Dx and BLS testing Leveraging continuum of lab capabilities across diagnostics and clinical trials Expansive Footprint/Scale USA Canada Asia Singapore Shanghai, China Kawagoe, Japan Suzhou, China Asia British Columbia Alberta, CA Manitoba, CA Ontario, CA Montreal, CA Ottawa, CABrampton, CA London, CA ©2023 Laboratory Corporation of America® Holdings. All rights reserved.
36©2023 Laboratory Corporation of America® Holdings. All rights reserved. Innovative approach to building a diverse global workforce D I A G N O S T I C S L A B O R A T O R I E S – L A B O P E R A T I O N S Strong Recruiting Pipeline • Expanding college/university affiliations • Global recruitment • Technical float roles • DE&I initiatives Robust Development Opportunities • NAACLS-accredited histology training program • Medical laboratory science training program • Resident training program • Labcorp Education Advantage Program Active Engagement • Lab exchange programs • Business advisory teams • Employee resource groups • Community outreach programs
37©2023 Laboratory Corporation of America® Holdings. All rights reserved. Biopharma Laboratory Services Jon DiVincenzo EVP and President, Central Laboratories and International Maryland Franklin, PhD VP and Enterprise Head of Cell & Gene Therapy
38©2023 Laboratory Corporation of America® Holdings. All rights reserved. Leadership across each phase of the drug development journey B I O P H A R M A L A B S E R V I C E S Clinical trial kitting, specialty and safety testing, biorepository Discovery, safety assessment, DMPK1 Drug Development Process Nonclinical Development Clinical Development Diagnostic Monitoring Pharma Biotech Early Development Research Laboratories (ED) Central Laboratory Services (CLS) $0.9B revenue $1.8B revenue Note: FY 2022 revenue 1. DPMK = Drug metabolism and pharmacokinetics
39©2023 Laboratory Corporation of America® Holdings. All rights reserved. Strong track record of growth targeting a $16B global market opportunity B I O P H A R M A L A B S E R V I C E S 2023 – 2026 outlook: Organic revenue growth of 4.5% - 7.5% $2.1 $2.2 $2.8 $2.7 $2.8 2019 2020 2021 2022 2023 Guidance Midpoint Early Development Central Laboratories Biopharma Lab Services revenue growth ($B) High growth focus areas Precision medicine Cell and gene therapies Biomarkers & genomics Companion diagnostics Liquid biopsy Note: Midpoint of guidance issued on July 27, 2023; see appendix for more information
40©2023 Laboratory Corporation of America® Holdings. All rights reserved. Differentiated by exceptional science, operational execution and customer focus B I O P H A R M A L A B S E R V I C E S • Supported 100% of oncology C>s approved by FDA • >150 CDx-related studies in development pipeline • European and APAC kitting CoEs launched in past 2 years • Automation-driven global logistics and process excellence • ~50 molecular bioanalysis methods developed annually • ~200 new clinical assays validated annually Precision Medicine Capabilities Operational Excellence and Scale Technology and Testing Innovations Differentiated Workforce • 1,200+ PhDs / MDs across Labcorp • Strategic talent locations (e.g. India) CoE: Center of excellence
41©2023 Laboratory Corporation of America® Holdings. All rights reserved. Unmatched global footprint across biopharma labs and specialty diagnostics B I O P H A R M A L A B S E R V I C E S Brentwood, TN Indianapolis, IN Madison, WI Denver, PA San Carlos, CA Ann Arbor, MI Somerset, NJ Bedford, MA Singapore Kawagoe, Japan Geneva, Switzerland Mechelen, Belgium York, U.K. Shardlow, U.K. Huntingdon, U.K. Eye, U.K. Münster, Germany UNITED STATES EUROPE ASIA 1. Includes extended network of clinical trial facilities (including bioanalysis and manufacturing control testing) Also leveraging 15+ Labcorp specialty diagnostic testing sites across the U.S. Central laboratories1 Early development sites Los Angeles, CA Morrisville, NC Suzhou, China Baltimore, MD Buffalo, NY South San Francisco, CA Chantilly, VA
42©2023 Laboratory Corporation of America® Holdings. All rights reserved. Early Development is a market leader with sophisticated scientific capabilities B I O P H A R M A L A B S E R V I C E S 1. Includes basic formulation, dosing, sample collection and analysis, and basic pharmacokinetic (PK) calculation for large volume work with pre-established workflows 2. Developmental and reproductive toxicology • Powder to PK data in 5 days1 • Hit validation to candidate selection • GLP safety endpoints and drug abuse liability • Globally harmonized data platform • Metabolism and bioanalysis • Ocular toxicology and DART2 • Specialty routes of administration • Environmental surveillance PharmacologyDiscovery Comprehensive nonclinical portfolio of solutions, differentiated by scientific expertise Safety & Toxicology
B I O P H A R M A L A B S E R V I C E S Central Lab Services generates more than half of global clinical trial lab data Specimen Storage Specimen Retrieval and Shipping Results Reporting Dedicated Project Managers Global Logistics Box Opening and Kit Receipt Specimen and Requisition Reconciliation High-Speed Sorting and Aliquoting World class clinical trial kits and logistics Specimen management, tracking and analysis Skilled project and data management Routed to CLS Laboratories for Testing ©2023 Laboratory Corporation of America® Holdings. All rights reserved.
44©2023 Laboratory Corporation of America® Holdings All rights reserved. Integrated client offering across the drug development continuum B I O P H A R M A L A B S E R V I C E S Client needs Labcorp offering Asset identification IND regulatory & scientific expertise Experienced trial site selection Lab testing & logistics management ED Preclinical Oncology Early efficacy and lead optimization ED Toxicology IND-enabling studies 6-12 months ahead of timeline CLS Data Data-driven approach for site identification CLS Core Testing Full suite of testing and sample management Successful IND submission achieved ahead of schedule, extending patent runway
45©2023 Laboratory Corporation of America® Holdings. All rights reserved. Biopharma Lab Services is the bridge from diagnosis to life-saving therapy B I O P H A R M A L A B S E R V I C E S Pharma discovery Diagnostics Biopharma Lab Services Research and data New therapies to patients Diagnosis and ongoing monitoring Clinical trial labs support
46©2023 Laboratory Corporation of America® Holdings. All rights reserved. Cell & gene therapy (C>) presents a significant market opportunity B I O P H A R M A L A B S E R V I C E S – C E L L A N D G E N E T H E R A P Y 2022 Total Addressable Market, Source: Labcorp market analysis intelligence ~20% Drug development pipeline ~$2B Addressable market across biopharma lab services ~15% 2022-2026 market growth CAGR
47©2023 Laboratory Corporation of America® Holdings. All rights reserved. Cell & gene therapies: Novel modalities that vary from conventional therapies B I O P H A R M A L A B S E R V I C E S – C E L L A N D G E N E T H E R A P Y CELL & GENE THERAPY DEVELOPMENT DIFFERENCES Living Drugs | One Time Treatment | Potentially Curative | Complex Logistics | Rapid Timelines Gene TherapyCell Therapy Change the T-cells in the lab to become CAR T-cells CAR T-cells multiply in the lab CAR T-cells delivered back into your bloodstream Collect T-cells from your blood CAR T-cells find and attack cancer cells 1. 2. 3. 4. 5. Target cell Viral vector releases gene into cell Gene expresses proteins Secreted protein DNA code for a therapeutic gene Gene encapsulated in viral vector DNA mutation results in disease
48©2023 Laboratory Corporation of America® Holdings. All rights reserved. C> is a fast-growing field, with exponential scientific advances B I O P H A R M A L A B S E R V I C E S – C E L L A N D G E N E T H E R A P Y Emerging Advancing Mature Proof of concept for initial clinical applications Limited therapies in development Advancing to cover different treatments Growing therapies in pipeline; limited marketed products Expanding to cover different mechanisms Stable therapies in pipeline with large volumes marketed Small moleculeCAR-T2 / AAV3 gene replacement CRISPR1 / In vivo gene editing Example therapeutic approaches >3,500 Cell & Gene Therapies under development 1. Clustered, regularly interspaced short palindromic repeats 2. CAR-T : Chimeric antigen receptor-T cells, a form of cell therapy 3. Adeno-associated virus Source: Evaluate Pharma, FDA
49©2023 Laboratory Corporation of America® Holdings. All rights reserved. Leveraging momentum to support a groundbreaking year for C> B I O P H A R M A L A B S E R V I C E S – C E L L & G E N E T H E R A P Y 100% Oncology Including 6 of 6 CAR-T therapies 88% Gene replacement 6 approvals YTD 5 US + 1 EU 5 in late-stage approval process 4 US; 1 US + EU 8 additional decisions anticipated 6 US + 2 EU "[B]y 2025, we predict that the FDA will be approving 10 to 20 cell and gene therapy products a year" Scott Gottlieb, MD and Peter Marks, MD, PHD (FDA) January 19, 2019 2023 poised to be a pivotal year for C> Labcorp has strong momentum
50©2023 Laboratory Corporation of America® Holdings. All rights reserved. Leading the way in complex science to fuel C> development B I O P H A R M A L A B S E R V I C E S – C E L L & G E N E T H E R A P Y Cell therapy discovery engine Advancing discovery of CAR-T cell immunotherapies targeting solid tumors Complex nonclinical dosing MRI-guided delivery of AAV gene therapies to bolster advances in Parkinson’s disease Sophisticated model development Cardiovascular delivery of pluripotent stem cells to replace damaged tissue Cutting edge assay capabilities Specialty genomic testing to advance gene editing therapies
51©2023 Laboratory Corporation of America® Holdings. All rights reserved. Patients Can’t Wait. Neither Can We. B I O P H A R M A L A B S E R V I C E S – C E L L & G E N E T H E R A P Y Cherishes the time she gets to spend with her granddaughter Cecile Diagnosed with Multiple Myeloma Labcorp has supported all 6 FDA-approved CAR T-cell therapies and 7 FDA-approved gene replacement therapies Loves helping her mom make dinner and wants to be a chef Fatima Diagnosed with Transfusion Dependent Beta-Thalassemia Likes riding bikes with his friends and spending time with his family Kyle Diagnosed with Duchenne Muscular Dystrophy Wants to be a firefighter someday Matthew Diagnosed with SMA2 Type 1 pre-birth Planning his next hiking adventure with his wife and friends James Diagnosed with Severe Hemophilia A Enjoys his retirement with his wife, Debra John Diagnosed with Non-Hodgkins Lymphoma Names and some details changed to protect patient confidentiality 1. AAV = adeno associated virus; 2. SMA = spinal muscular atrophy; 3. LVV = lentiviral vector; 4. BCMA CAR T = B cell maturation antigen chimeric antigen receptor T cell; 5. CD19 = cluster of differentiation AAV1 gene therapy Stem cell / LVV3 gene therapy BCMA CAR T4 therapy CD195 CAR T therapy
52©2023 Laboratory Corporation of America® Holdings. All rights reserved. Key takeaways D I A G N O S T I C S A N D B I O P H A R M A L A B S E R V I C E S Strong core business with focus on growth areas Differentiated by exceptional science and global scale Improve health, improve lives Leading lab services provider with end-to-end capabilities
53©2023 Laboratory Corporation of America® Holdings. All rights reserved. Break
54©2023 Laboratory Corporation of America® Holdings. All rights reserved. Science, Innovation and Technology Brian Caveney, MD EVP and President, Early Development and Chief Medical and Scientific Officer Lance Berberian EVP and Chief Information and Technology Officer
55©2023 Laboratory Corporation of America® Holdings. All rights reserved. Scientific excellence is at the core of everything we do S C I E N C E , I N N O V A T I O N A N D T E C H N O L O G Y 1,200+ Scientists with PhDs, MDs Working Together We work with industry partners globally to deliver quality assays to our clients and patients Internally developed LDTs Global IVD and RUO assays in development ~650 scientific contributions1,2 ~200 new clinical assays validated1 100+ new Dx tests added annually 1 FY 2022 2 Includes journal articles, abstracts, posters, peer-reviewed publications and presentations
56©2023 Laboratory Corporation of America® Holdings. All rights reserved. Leading single-source test menu in the industry S C I E N C E , I N N O V A T I O N A N D T E C H N O L O G Y Over 6,500 clinical Dx assays Full spectrum of nonclinical, clinical trial, and clinical diagnostic assays Full-service capabilities in all testing categories and disease states Perform over ~99% of testing in-house Our processes enable development, validation and launch of new tests across Early Development, Central Labs and Diagnostics Laboratories
57©2023 Laboratory Corporation of America® Holdings. All rights reserved. We continue to enhance testing in every area of science S C I E N C E , I N N O V A T I O N A N D T E C H N O L O G Y We have been particularly active and see the most opportunity in these rapidly expanding areas Women’s health Cell and Gene Therapy Neurology AutoimmuneOncology
58©2023 Laboratory Corporation of America® Holdings. All rights reserved. Leveraging advanced technology to enhance user experience and improve profitability S C I E N C E , I N N O V A T I O N A N D T E C H N O L O G Y Artificial intelligenceDigital experience for patients and providers Proprietary robotics / automation
Innovative digital platforms with state of the art test results S C I E N C E , I N N O V A T I O N A N D T E C H N O L O G Y Offering patients a simple, streamlined digital experience ©2023 Laboratory Corporation of America® Holdings. All rights reserved.
Bringing Labcorp’s scientific expertise to the point of care S C I E N C E , I N N O V A T I O N A N D T E C H N O L O G Y Dx Assistant Link Capabilities Interactive Dashboard ©2023 Laboratory Corporation of America® Holdings. All rights reserved.
61©2023 Laboratory Corporation of America® Holdings. All rights reserved. Advanced automation across the organization S C I E N C E , I N N O V A T I O N A N D T E C H N O L O G Y Matrix robot sorts 6,000 tubes per hour with a level of precision that improves quality and reduces turnaround time for our patients
62©2023 Laboratory Corporation of America® Holdings. All rights reserved. Value creation through artificial intelligence S C I E N C E , I N N O V A T I O N A N D T E C H N O L O G Y Generate profitable growth Increased collection efficiency Launch new revenue-generating products in precision medicine Improved screening identification with Labcorp PredictTM to locate NASH patients Shift employees to value added activities Top-rated patient service center experience
63©2023 Laboratory Corporation of America® Holdings. All rights reserved. Financial Outlook Glenn Eisenberg EVP and Chief Financial Officer
64©2023 Laboratory Corporation of America® Holdings. All rights reserved. The Labcorp Playbook: Delivering long-term shareholder value F I N A N C I A L O U T L O O K EPS growth Strong cash flow Disciplined capital deployment Return capital to shareholders Capital Expenditures and Strategic Acquisitions Capital Expenditures / LaunchPad Initiatives Revenue growth Margin expansion
65©2023 Laboratory Corporation of America® Holdings. All rights reserved. $0.8 $1.6 $2.4 $1.5 $0.9 2019 2020 2021 2022 2023 Guidance Midpoint $9.1 $11.5 $13.1 $11.9 $12.1 2019 2020 2021 2022 2023 Guidance Midpoint (In Billions) Revenue Adjusted EPS Free Cash Flow (In Billions) 1 Total 2023 CAGRs vs 2019 Organic CCurReportedSegment ~6%7.4%Diagnostics Laboratories ~7%7.5%Biopharma Lab Services ~6%7.5%Enterprise 2023 Adj. EPS CAGRs vs 2019 9.5%Total Adjusted EPS 2023 Free Cash Flow CAGR vs 2019 3.0%Free Cash Flow Track record of profitable growth F I N A N C I A L O U T L O O K 1 1 COVID-19Biopharma LabsDiagnostics COVID-19Base Business 2 3 $9.38 $21.91 $25.80 $16.66 $13.50 2019 2020 2021 2022 2023 Guidance Midpoint 1. Midpoint of guidance issued on July 27, 2023; see appendix for more information 2. COVID-19 revenue impact on 2023 vs 2019 CAGR of approximately +40 bps; Ascension revenue impact on 2023 vs 2019 CAGR of approximately +200bps 3. COVID-19 revenue impact on 2023 vs 2019 CAGR of approximately +30 bps; Ascension revenue impact on 2023 vs 2019 CAGR of approximately +100bps 4 4. Constrained by NHP prepayments and working capital timing. 2023 FCF CAGR vs 2019 in line with adjusted EPS growth excluding the impact of these items Note: Unless otherwise indicated, financials are from continuing operations (excludes Fortrea, formerly CDCS, and spin-related items).
66©2023 Laboratory Corporation of America® Holdings. All rights reserved. 2023 – 2026 Outlook: Positioned for strong growth F I N A N C I A L O U T L O O K OutlookMetric 2026 CAGR vs 2023Organic Revenue Growth 3.5% to 5.5%1Labcorp Enterprise 2.5% to 4.5%2Diagnostics Laboratories 4.5% to 7.5%Biopharma Laboratory Services Acquisition Revenue Growth 1.5% to 2.5%Labcorp Enterprise Total Margin Expansion (2023 to 2026) 100bps to 150bps3Labcorp Enterprise Adjusted EPS Growth 8.5% to 11.5%4Total Adjusted EPS Free Cash Flow Growth In line with Adjusted EPS GrowthTotal Free Cash Flow Targeted Leverage 2.5x to 3.0xGross Debt to TTM Adjusted EBITDA 1. Enterprise: COVID-19 and PAMA impact on 3-year outlook of approximately -70 bps at the midpoint; for 2024 vs 2023, COVID-19 impact of approximately -$120M and PAMA impact of approximately -$80M for combined impact on growth rate of approximately -160bps 2. Diagnostics: COVID-19 and PAMA impact on 3-year outlook of approximately -100 bps at the midpoint; for 2024 vs 2023, COVID-19 impact of approximately -$120M and PAMA impact of approximately -$80M for combined impact on growth rate of approximately -220bps 4. COVID-19 and PAMA impact on 3-year outlook of approximately -300bps at the midpoint and approximately -800bps impact on 2024 growth rate versus 2023 3. COVID-19 and PAMA impact on 3-year outlook of approximately -110bps at the midpoint and approximately -70bps impact on 2024
67©2023 Laboratory Corporation of America® Holdings. All rights reserved. Continued focus on margin expansion through LaunchPad initiative F I N A N C I A L O U T L O O K Current LaunchPad initiative from 2022-2024 is on track to meet or exceed $350M Included in our guidance for 2024-2026 is a LaunchPad savings target range of $100M to $125M per year LaunchPad Initiative LaunchPad Drivers Re-engineering the Company’s systems and processes Leveraging technological advancements Rationalizing geographic location of facilities and talent Structural enhancements/acquisition integration 1 2 3 4
68©2023 Laboratory Corporation of America® Holdings. All rights reserved. Disciplined capital deployment to drive shareholder value F I N A N C I A L O U T L O O K 1. 2019 through 2022 include total company sources of cash and capital allocation for total Labcorp (includes discontinued operations) 2. “Returning Capital to Shareholders” includes share repurchases and quarterly cash dividends. Quarterly cash dividend initiated in Q2 2022 Targeted Gross Debt to TTM Adjusted EBITDA leverage of 2.5x to 3.0x 2019 – 2022 Capital Allocation: $8.6bn1 $1.7 $1.2 $2.8 $2.9 $- $0.5 $1.0 $1.5 $2.0 $2.5 $3.0 2019 2020 2021 2022 (In Billions) 2019 – 2022 Cash Flow Allocation % of Total1 (In Billions) 20% 32% 7% 41% $3.5 $1.7 $2.8 $0.6 CapEx M&A Debt Paydown Returning capital to shareholders2
69©2023 Laboratory Corporation of America® Holdings. All rights reserved. Disciplined approach to acquisitions and integration F I N A N C I A L O U T L O O K Target Acquisition Criteria FinancialStrategic Accretive to earnings and cash flow year 1 Accelerates growth in key focus areas Earn cost of capital by year 3Adds capabilities that complement our core Market leader/strong management team
70©2023 Laboratory Corporation of America® Holdings. All rights reserved. Top-line growth driven by organic initiatives and strategic acquisitions Margin improvement from top-line growth and LaunchPad initiatives Strong free cash flow generation to support acquisitions and return of capital to shareholders while maintaining investment-grade rating on debt Key Takeaways F I N A N C I A L O U T L O O K Improve health, improve lives
71©2023 Laboratory Corporation of America® Holdings. All rights reserved. Closing Remarks Adam Schechter
72©2023 Laboratory Corporation of America® Holdings. All rights reserved. We are excited about the future of Labcorp We have significant near-term opportunities in Hospital and Health Systems Our leadership in science, technology and innovation positions us far above market growth in Specialty We have a compelling financial profile leading to $14B+ in revenue in 2026 with high-single to low-double digit EPS growth We are helping millions of people improve health and improve lives We are positioned well for long-term success in C>, Consumer and International
73©2023 Laboratory Corporation of America® Holdings. All rights reserved. Q&A
74©2023 Laboratory Corporation of America® Holdings. All rights reserved. Appendix
75©2023 Laboratory Corporation of America® Holdings. All rights reserved. Outlook for 2023 Guidance has not changed from what was provided on July 27, 2023, along with second quarter 2023 results. This guidance assumes foreign exchange rates effective as of June 30, 2023, for the remainder of the year. Enterprise level guidance includes the estimated impact from currently anticipated capital allocation, including acquisitions, share repurchases and dividends. 1. 2023 Guidance includes an impact from foreign currency translation of 0.3% 2. Enterprise level revenue is presented net of intersegment transaction eliminations 3. 2023 Guidance includes an impact from foreign currency translation of (0.1%) 4. 2023 Guidance includes an impact from foreign currency translation of 1.5% 5. Free Cash Flow from continuing operations excluding spin-related items A P P E N D I X (Dollars in billions, except per share data) Results 2022 Low High Revenue Total Labcorp Enterprise1,2 $11.9 1.5% 3.0% Base Business1,2 $10.7 11.3% 12.6% COVID-19 Testing2 $1.2 (89.0%) (85.0%) Total Diagnostics Laboratories3 $9.2 0.5% 1.5% Base Business $8.1 13.2% 14.2% COVID-19 Testing $1.2 (89.0%) (85.0%) Total Biopharma Lab Services4 $2.7 3.0% 4.5% Adjusted EPS $16.66 $13.00 $14.00 Free Cash Flow from Cont. Ops5 $1.5 $0.8 $1.0 2023 Guidance