This morning, Laboratory Corporation of America Holdings (LH) reported strong third quarter financials. The company’s earnings per share of $1.22 surpassed the Zacks Consensus Estimate of $1.15 as well as the $1.10 reported in the year-ago period. Revenues recorded a 4.4% year-over-year increase to $1.2 billion, driven by a 0.7% increase in testing volume (measured by accessions) and a 3.7% increase in revenue per accession. Lab Corp’s gross margin reported an improvement of 137 basis points during the reported quarter. While revenues increased 4.4%, cost of goods sold grew by 2%. The company recorded an improvement in operating margin (excluding restructuring and other special charges) by 60 basis points to 20% compared to 19.4% in the year-ago period. At the end of the September quarter, Lab Corp had $126.8 million of cash and short-term investments, down from $219.7 million at the end of December 2008. Free ...

Late last month, life sciences company Monogram Biosciences (MGRM) announced that it will be acquired by clinical laboratory firm Laboratory Corp. of America Holdings (LH) for $106.7 million, or a total enterprise value of approximately $155 million at the end of March 31. The acquisition is expected to close in the third quarter of 2009.

As per terms of the agreement, LabCorp's acquisition subsidiary Mastiff Acquisition Corp. has commenced a tender offer to purchase all outstanding shares of Monogram Biosciences for $4.55 per share in cash, without interest. Following completion of the tender offer, Mastiff and Monogram are expected to merge. The non-purchased shares will be converted into rights to receive equivalent cash value as in the tender offer.

Monogram is committed to advancing personalized medicine and improving patient outcomes through the development of innovative products that guide and target the most appropriate treatments. We are optimistic

...