The acquisition is expected to expand LabCorp’s capabilities in drug development and medical device testing.
Labcorp is known for operating one of the largest clinical laboratory networks and has recently announced their intent to acquire the preclinical contract research organization (CRO) Toxikon. The CRO supports safety and efficacy in clinical trials for novel devices and drugs by offering nonclinical testing. Their services include in vivo, in vitro and analytical testing services globally for medical device, pharmaceutical and biotechnology companies. The acquisition is set to show Labcorp’s commitment to nonclinical development as well as improve the companies’ skills in medical devices and drug development. Toxikon’s expandable Massachusetts headquarters also gives Lapcorp an opportunity to broaden their already existing toxicology business. Paul Kirchgraber, CEO of Labcorp stated, “This acquisition extends Labcorp’s portfolio of full-service drug development and medical device solutions from discovery to market approval.”
The acquisition is set to be finalised before the end of the year, pending regulatory approvals and completion of customary closing conditions. The terms of the deal have been kept secret, though Labcorp publicised that Toxikon makes an annual revenue of about $40 million. Founder, President and CEO of Toxikon, Laxman Desai stated, “As a part of the Labcorp family, we will have an opportunity to broaden our impact through access to extensive resources, knowledge and support. Together, we can provide better outcomes for our clients and, ultimately, the healthcare providers and patients who depend on our continued success and innovation.” Should the deal be successful it will be Labcorp’s second acquisition of the year, with the company recently acquiring women’s health company Ovia Health, in August.