LabCorp Acquires ClearPath Diagnostics

Less than a month after its acquisition of neonatal specialty lab Sequenom, LabCorp acquired obstetric and gynecology testing firm ClearPath Diagnostics from private equity firm Shore Capital Partners for an undisclosed amount.

The Sequenom and ClearPath acquisitions represent a continuation of LabCorp’s strategy of focusing on high-margin esoteric testing to drive revenue. Their previously announced long-term goal is $150 million in incremental revenues, including $100 million for companion diagnostics, by the end of 2018. Although it has also partnered with hospitals, LabCorp has relied on strategic acquisitions to build its technological base and expand its portfolio of sophisticated, specialty diagnostic testing services.

One of LabCorp’s primary targets has been the women’s health market. In December 2015, the company agreed to acquire independent women’s health lab Pathology, Inc., including its patient testing and services businesses. In September, LabCorp acquired San Diego-based Sequenom, a company best known for its MaterniT prenatal genomic test.

ClearPath’s attractiveness as a target is the array of OB/GYN tests and services it provides, including the Hologic Aptima HPV assay, Combo 2 assay, and Trichomonas vaginalis assay, as well as Becton Dickinson’s Affirm VPIII to differentiate and identify vaginitis pathogens, Meridian Bioscience’s Illumigene tests for Group B Streptococcus and HSV 1&2, and molecular diagnostic PCR testing.

The acquisition of ClearPath will combine “LabCorp’s comprehensive women’s health service offering” with ClearPath’s local expertise to create “an unmatched blend of value and quality to our obstetric and gynecologic customers and patients,” noted William Haas, LabCorp senior vice president and co-leader of LabCorp Diagnostics.