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Clinical Laboratories Step Up the Pace of Genomics Dealmaking

Large reference laboratories, looking to shore up their growth and margins, are increasingly interested in esoteric testing, and, in particular, in molecular-based testing, as indicated in a series of recent deals by the nation's largest reference labs. LabCorp has exclusive alliances with Myriad Genetics and Exact Science Corp., while Quest has thrown its efforts behind diaDexus and Roche.

Large reference laboratories with their eyes on the fast-growing esoteric testing market are scrambling to shore up their positions in genomics. In doing so, they are jumping into exclusive deals with companies that have programs for discovering disease-associated molecular markers with such vigor that in one recent 10-day period the nation's two largest laboratories each issued two press releases about a total of four exclusive deals they'd done.

The deals aim to give the laboratories, which still obtain most of their revenues from traditional, slow-growth in vitro diagnostics segments, a head start in genomics and proteomics, which many...

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