Covance to expand central labs business through NeoGenomics accord
The ‘exclusive alliance’ – details of which were not disclosed – will allow Covance customers to access NeoGenomics pathology and histology (APH) services, which include techniques like immunohistochemistry (IHC), fluorescence in-situ hybridization (FISH) and molecular analysis.
The preclinical contract research organization (CRO) will also set up a services laboratory at NeoGenomics’ facility in Fort Myers, Florida, US, which will help cut timelines according to Paul Kirchgraber, VP of laboratory operations and medical affairs.
“Providing these integrated services through the Covance laboratory co-located within NeoGenomics results in improved turnaround times critical to oncology clinical trials.”
This was echoed by NeoGenomics’ CEO, Douglas VanOort, who said: “Our oncology-focused genetic and molecular testing services are a perfect complement to Covance’s extensive laboratory services and will allow NeoGenomics to rapidly grow its clinical trials business.”
The deal comes hot on the heels of Covance’s agreement with Pathoquest which, like the NeoGenomics collaboration, is focused on using advanced genetic analysis techniques to accelerate and improve product development.
The NeoGenomics deal also follows just a few weeks after Covance CEO Joseph Herring credited the firm’s central business with growth the firm achieved in the third quarter.
Speaking on October 29, Herring said: “Financial highlights in the third quarter included consolidated pro forma revenue growth of 12%, operating margin of 11.1%, EPS of $0.83, and record quarterly free cash flow of $180 million.
“Our better-than-expected results in the third quarter were driven by exceptional performance in our central laboratory and continued strong results in clinical development."
The partnership with NeoGenomics – which will also see the firms “expand joint capabilities globally at Covance's central laboratory locations in Shanghai, Geneva, and Singapore” – further underlines that the CRO sees this part of its business as very important.
