Global CRO Covance ($CVD) has struck up a deal to expand its diagnostics capabilities in oncology trials, partnering with NeoGenomics to bolster its anatomic pathology and specialty lab testing.
Under the deal, Covance will get access to NeoGenomics' full fleet of molecular diagnostic technology and team of more than 500 pathologists, agreeing to establish a lab at the company's Fort Myers, FL, headquarters. Together, the two will offer a full range of anatomic pathology and histology testing, along with tissue-based biomarkers and other specialty testing services, starting in Florida and expanding into Covance's global labs.
For NeoGenomics, the deal means access to Covance's expansive market reach and worldwide client base, the company said, and Covance sees an opportunity to cash in on the escalating demand for targeted drug development and companion diagnostics.
"The collaboration with NeoGenomics will offer our clients fully integrated anatomic pathology services from sample preparation, staining and imaging, to pathology interpretation by leading pathologists, in an end-to-end manner," Vice President Paul Kirchgraber said in a statement. "Providing these integrated services through the Covance laboratory co-located within NeoGenomics results in improved turnaround times critical to oncology clinical trials."
The latest deal follows Covance's partnership with Pathoquest to offer next-generation sequencing-based tests for biologics, part of the CRO's ongoing effort to expand its capabilities in personalized medicine.
Over the past year, Covance's booming late-stage development business has helped it offset continuing flatness in early research. Last quarter, the New Jersey-headquartered CRO boosted revenue 11.4% to $606.7 million and grew net income 16.9% to $44.2 million.
- read the statement