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LabCorp and Envigo Complete Innovative Transactions

June 3, 2019 Off By BusinessWire

LabCorp Acquires Envigo’s Global Nonclinical Contract Research Business,
Envigo Acquires LabCorp’s Covance Research Products Business

BURLINGTON, N.C. & INDIANAPOLIS–(BUSINESS WIRE)–LabCorp® (NYSE: LH), a leading global life sciences company that is
deeply integrated in guiding patient care, and Envigo, a leading
provider of research models and services, today announced that they have
completed previously announced transactions that will strengthen and
enhance the way their respective businesses support research in the
biopharmaceutical and life sciences industries.

LabCorp’s Covance Drug Development segment has completed the acquisition
of Envigo’s nonclinical contract research services business, expanding
Covance’s global nonclinical drug development capabilities with
additional locations and resources. Envigo’s Research Models and
Services business has completed the acquisition of the Covance Research
Products business, resulting in an organization dedicated to offering a
full range of research models, diets and bedding. The two companies will
continue to collaborate through a multi-year, renewable supply agreement.

“This unique transaction furthers a key element of our strategy to
provide the biopharma industry with comprehensive drug development
services that help bring innovative medicines to patients,” said David
P. King, chairman and CEO of LabCorp. “We are delighted to welcome our
new colleagues from Envigo to Covance and look forward to driving growth
and innovation with enhanced nonclinical research solutions that
ultimately improve health and improve lives.”

“With a singular focus on being the provider of choice for research
models and services that support discoveries and development across life
sciences, Envigo has set a new and exciting course for the future,” said
Dr. Adrian Hardy, president and CEO of Envigo. “We are proud and excited
to welcome our new colleagues from Covance Research Products. Together,
we now provide an even wider range of capabilities to serve and delight
our valued customers. We will also forge new connections in support of
our shared vision – working together to build a healthier and safer
world.”

LabCorp Transaction Details

The transactions resulted in net implied cash consideration paid by
LabCorp of $485 million. The net impact of the transactions is an
incremental $156 million in LabCorp’s revenue on a pro forma 2018 basis.
The transactions are expected to meet LabCorp’s financial criteria of
earnings and cash accretion in year one and exceed the cost of capital
by year three.

About LabCorp

LabCorp (NYSE: LH), an S&P 500 company, is a leading global life
sciences company that is deeply integrated in guiding patient care,
providing comprehensive clinical laboratory and end-to-end drug
development services. With a mission to improve health and improve
lives, LabCorp delivers world-class diagnostic solutions, brings
innovative medicines to patients faster, and uses technology to improve
the delivery of care. LabCorp reported revenue of more than $11 billion
in 2018. To learn more about LabCorp, visit www.LabCorp.com,
and to learn more about Covance Drug Development, visit www.Covance.com.

About Envigo

Envigo provides the broadest range of standard research models to the
pharmaceutical and biotechnology industries, government, academia and
other life science organizations. As the largest organization that is
solely dedicated to providing research models and related products and
services, we are committed to helping researchers realize the full
potential of their critical R&D projects as we fulfill our mission to
work together to build a healthier and safer world. To learn more about
Envigo’s products and services, visit www.envigo.com.

LabCorp Forward-Looking Statements

This press release contains forward-looking statements within the
meaning of the federal securities laws with respect to the transaction
between LabCorp and Envigo, including statements regarding the benefits
of the transaction and the products and markets of each company. These
forward-looking statements generally are identified by the words
“believe,” “project,” “forecast,” “expect,” “anticipate,” “estimate,”
“intend,” “strategy,” “future,” “opportunity,” “plan,” “may,” “should,”
“will,” “would,” “will be,” “will continue,” “will likely result,” and
similar expressions. Forward-looking statements are predictions,
projections and other statements about future events that are based on
current expectations and assumptions and, as a result, are subject to
risks and uncertainties. Actual results could differ materially from
those suggested by the forward-looking statements in this press release,
due to factors including but not limited to: the successful integration
of Envigo’s nonclinical business into the Covance Drug Development
nonclinical business; adverse reactions to the integration by customers,
suppliers or strategic partners; dependence on key personnel and
customers; reliance on proprietary technology; management of growth and
organizational change; failure to executive the multi-year, renewable
supply agreement between Covance and Envigo; and competitive actions in
the marketplace. The foregoing list of factors is not exhaustive.
You should carefully consider the foregoing factors and the other risks
and uncertainties that affect the businesses of LabCorp described in the
RISK FACTORS section of LabCorp’s Annual Report on Form 10-K for the
year ended Dec. 31, 2018, subsequent Quarterly Reports on Form 10-Q, and
in LabCorp’s other filings with the SEC. The information in this press
release should be read in conjunction with a review of LabCorp’s SEC
filings, including the information under the heading MANAGEMENT’S
DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
in LabCorp’s most recent Form 10-K and Form 10-Q. Forward-looking
statements speak only as of the date they are made. Readers are
cautioned not to put undue reliance on forward-looking statements, and
LabCorp assumes no obligation and does not intend to update or revise
these forward-looking statements, whether as a result of new
information, future events, or otherwise.