Labcorp buys Millennium Health drug testing division

Labcorp has finalized its acquisition of accredited specialty laboratory Millennium Health, expanding the company’s drug testing operations across a broader geographic area. The deal, valued at $245 million upfront with potential additional payments, gives Labcorp access to specialized toxicology services. The takeover, which Labcorp struck last month, is worth $245 million upfront plus up to $130 million in milestone payments tied to specified future events.

Millennium provides urine- and oral-fluid-based tests for prescription, over-the-counter, and illicit drugs. Labcorp already offers drug testing to physicians monitoring patients on controlled substances or those with substance use disorders. By integrating these capabilities, the company strengthens its ability to serve a wider range of clinical needs.

CEO Adam Schechter emphasized the strategic benefit of the purchase in comments to investors, noting that the company had experience managing similar operations. “It’s a business we know how to run, it’s a business we’ve been involved in for many years and it just expands our geographic footprint and enables us to be more competitive, improve access to parts of the country that we don’t have as much access to as of today,” Schechter said. The Protecting Access to Medicare Act increases the pipeline for business development, according to Schechter, who said, “I think smaller hospital laboratories, regional/local laboratories, they’re going to struggle a lot with PAMA, and it really does cause them to rethink about their business.”