DOW JONES NEWSWIRES
Laboratory Corp. of America Holdings (LH) agreed to acquire
Monogram Biosciences Inc. (MGRM), a maker of products to help guide
and improve the treatment of serious diseases, for about $106.7
million, continuing LabCorp's acquisition spree.
Under the agreement, expected to close in the third quarter,
LabCorp will pay $4.55 for each Monogram share, more than double
Monday's closing price of $1.68. The stock is down 74% the past
year and last traded above the takeover price in October.
The deal will also include $50 million in Monogram debt that
LabCorp will assume.
LabCorp, one of the world's largest diagnostic-testing
companies, has relied on acquisitions to bolster its growth in
recent years. And while the industry is not generally thought of as
sensitive to changes in the economy, the credit crisis has made it
tougher for companies to cut deals.
Doctors use Monogram's products to optimize treatment for their
patients, while biopharmaceutical companies, such as Pfizer Inc.
(PFE), use the technology to help develop new antiviral and cancer
therapies and vaccines. "The potential oncology pipeline associated
with this technology is a natural extension of LabCorp's existing
oncology offerings for both clinical trials and commercial
clients," a LabCorp release said.
LabCorp Chairman and Chief Executive David P. King said the deal
will allow the company to build on Monogram's already strong sales,
to "advance our leadership in infectious disease and cancer
testing, companion diagnostics and personalized medicine."
The acquisition is expected to be reduce LabCorp 2009 earnings
by 12 cents a share, including approximately 4 cents of
transaction-related costs, but add to earnings in 2010.
LabCorp shares were recently down 41 cents at $65.30.
-By Mike Barris, Dow Jones Newswires; 201-938-5658;
mike.barris@dowjones.com