Labcorp Holdings Inc. · NYSE:LH
Labcorp — Laboratory Corp of America Holdings — Investor Day (September 2023)
75 slides from Labcorp's investor day presentation, Sep 14, 2023
Slide 1: Investor Day September 14, 2023
©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
Slide 2: Cautionary statement regarding forward-looking statements
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 f
Slide 3: Today's agenda
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., La
Slide 4: Poised for Strong Growth
4©2023 Laboratory Corporation of America® Holdings. All rights reserved. Poised for Strong Growth Adam Schechter Chairman and Chief Executive Officer
Slide 5: Our work helps enable clear, confident decisions
Our work helps enable clear, confident decisions for patients, healthcare providers and biopharmaceutical companies to improve health and improve lives
Slide 6: Largest laboratory service provider in the world
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 consisten
Slide 7: A mission driven, global laboratory services leader
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+ Tes
Slide 8: More than years of healthcare laboratory services and innovation
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 reser
Slide 9: Strong leadership team with significant experience
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 Di
Slide 10: Recognized as a leading employer
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+
Slide 11: Market leader operating at scale with growth opportunities
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 &
Slide 12: Strong revenue growth opportunities across business segments
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 ter
Slide 13: A clear roadmap for near-term sustainable growth
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
Slide 14: Winning in health systems
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 heal
Slide 15: Four specialty focus areas driving future growth
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
Slide 16: Precision medicine and CDx capabilities – oncology example
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 F
Slide 17: Increasing focus on future growth opportunities
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 Lev
Slide 18: Laboratory of choice for Cell & Gene Therapy
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
Slide 19: Consumerism trends represent new growth opportunities
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 s
Slide 20: Launch targeted specialty diagnostics in international markets
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 Countrie
Slide 21: Our focus and strategy lead to sustainable growth
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 2023-202
Slide 22: Key takeaways
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
Slide 23: Diagnostics Laboratories
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
Slide 24: A market leader positioned for continued growth
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 t
Slide 25: Growth strategy supported by favorable market trends
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
Slide 26: Strong financial profile with a track record of success
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 PatientsMedic
Slide 27: Multiple access points to meet patients wherever they live
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.
Slide 28: Leveraging scale, quality, and access
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 • ~4
Slide 29: A patient-first mentality is core to our culture
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
Slide 30: Key takeaways
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
Slide 31: Significant potential in our holistic approach to 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 Outre
Slide 32: Strong momentum with track record of successful partnerships
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
Slide 33: Case study: Ascension
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 i
Slide 34: Health system momentum drives further innovation
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 pa
Slide 35: Best-in-class global lab operations
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 Sea
Slide 36: Innovative approach to building a diverse global workforce
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 •
Slide 37: Biopharma Laboratory Services
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
Slide 38: Leadership across each phase of the drug development journey
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 Proc
Slide 39: Strong track record of growth targeting a $16B global market
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 Guid
Slide 40: Differentiated by exceptional science, execution and customer focus
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 • Eu
Slide 41: Unmatched global footprint across biopharma labs
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 Sin
Slide 42: Early Development is a market leader with sophisticated capabilities
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) calc
Slide 43: Central Lab Services generates more than half of global clinical trial lab data
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 H
Slide 44: Integrated client offering across the drug development continuum
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
Slide 45: Biopharma Lab Services is the bridge from diagnosis to therapy
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 o
Slide 46: Cell & gene therapy presents a significant market opportunity
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
Slide 47: Cell & gene therapies: novel modalities
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 Tr
Slide 48: C> is a fast-growing field
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 Limi
Slide 49: Leveraging momentum to support a groundbreaking year for C>
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 +
Slide 50: Leading the way in complex science to fuel C> development
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 so
Slide 51: Patients Can't Wait. Neither Can We.
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 supp
Slide 52: Key takeaways
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
Slide 53: Break
53©2023 Laboratory Corporation of America® Holdings. All rights reserved. Break
Slide 54: Science, Innovation and Technology
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
Slide 55: Scientific excellence is at the core of everything we do
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 qualit
Slide 56: Leading single-source test menu in the industry
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-serv
Slide 57: Enhancing testing in every area of science
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 healt
Slide 58: Leveraging advanced technology to enhance experience and profitability
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
Slide 59: Innovative digital platforms with state of the art test results
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.
Slide 60: Bringing scientific expertise to the point of care
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.
Slide 61: Advanced automation across the organization
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
Slide 62: Value creation through artificial intelligence
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 medici
Slide 63: Financial Outlook
63©2023 Laboratory Corporation of America® Holdings. All rights reserved. Financial Outlook Glenn Eisenberg EVP and Chief Financial Officer
Slide 64: Playbook: Delivering long-term shareholder value
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 Acquisit
Slide 65: Track record of profitable growth
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
Slide 66: 2023 – 2026 Outlook: Positioned for strong growth
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%Biopharm
Slide 67: Continued focus on margin expansion through LaunchPad initiative
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 Launc
Slide 68: Disciplined capital deployment to drive shareholder value
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
Slide 69: Disciplined approach to acquisitions and integration
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
Slide 70: Key Takeaways
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 share
Slide 71: Closing Remarks
71©2023 Laboratory Corporation of America® Holdings. All rights reserved. Closing Remarks Adam Schechter
Slide 72: Closing summary of near-term opportunities and financial profile
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 ha
Slide 73: Q&A
73©2023 Laboratory Corporation of America® Holdings. All rights reserved. Q&A
Slide 74: Appendix
74©2023 Laboratory Corporation of America® Holdings. All rights reserved. Appendix
Slide 75: Outlook for 2023
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 ye
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