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Laboratory Corporation of America

The health insurer renewed its longstanding clinical lab services relationship with LabCorp and added Quest as an in-network provider of such services.

The investment bank downgraded LabCorp's shares to a Hold rating from Buy and lowered the target price on the stock to $162 from $195.

Diagnostics revenues were negatively affected by a ransomware attack and Hurricane Florence. The company narrowed its revenue and EPS guidance for full-year 2018.

Under one agreement, LabCorp will help Baptist Health establish a core lab. Its deal with Definiens is aimed at companion diagnostics development.

The companies will also explore expanding the services available at the patient service centers, including exploring novel approaches to clinical research.

LabCorp will provide clinical reference laboratory testing services as part of the contract, whose completion date is expected to be Sept. 30, 2019.

While acknowledging the lab industry's argument had merits, a judge agreed with the government that the court had no jurisdiction in the case. 

Genomic Vision announced this week that it has received a second payment from Quest Diagnostics related to the companies' collaboration for the development of new biomarkers to improve the genetic detection of spinal muscular atrophy. The company declined to disclose the amount of the payment.

LabCorp will be able to develop and commercialize the test for patients with an elevated PSA to determine their risk of having clinically significant prostate cancer.

The company acknowledged the opening up of exclusive insurer contracts may negatively impact revenues next year.