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Clinical Insider
Clinical Insider

Labcorp teams with Hawthorne Effect on decentralized trials

Posted by on 23 January 2024
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Labcorp has formed a decentralized trials-focused pact with tech firm Hawthorne Effect in an effort to grow its central labs business.

The collaboration – financial terms of which were not provided – will see Labcorp use Hawthorne’s digital study visit and data collection platform in decentralized and hybrid clinical trials.

Jonathan DiVincenzo, Labcorp's president of central laboratories and international operations said the aim is to ensure diverse patient participation, improve quality, completeness and timeliness of trial data, and accelerate trial timelines.

"At Labcorp, we are committed to making life-saving clinical trials more accessible, diverse and inclusive to all communities.

"Through this collaboration, we look forward to combining Labcorp's global laboratory network and logistics capabilities with Hawthorne Effect's digital platform to advance our decentralized clinical trial capabilities, increase clinical trial accessibility and diversity, and bring greater value to patients, their physicians and our sponsors,” DiVincenzo added.

This was echoed by Jodi Akin, Founder, Hawthorne Effect, who said "The combined expertise of both Labcorp and Hawthorne Effect will allow clinical trials to operate more efficiently with greater patient access and higher levels of compliance, resulting in timeline acceleration for customers.”

Central labs

Labcorp spun off its clinical development services business as Fortrea last year. However, its remaining central labs unit continues to provide trial test kits and to handle data – both decentralized and site-based - as a service to biopharma sponsors.

According to Labcorp’s third quarter financial statement in October, the central labs business g- which is part of its biopharma lab services segment – generated revenue of $719.1 million, an increase of 7.9% from $666.4 million in the third quarter of 2022.

More recently, CEO Adam Schechter told investors at the JP Morgan Healthcare conference that renewed demand from clinical trial sponsors would be a growth driver for Labcorp’s central labs business.

“If you look at our central laboratories business, the kits that we send out for clinical trials and the kits that are coming back to us from clinical trials are now back to pre-COVID levels and the business is doing very well. It’s very strong. We feel confident as we look at our longer term guidance.

“And the mix of that business is heavily skewed towards large pharma and large biotech and it’s mostly Phase II and Phase III trials.”


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