US FTC challenges LabCorp's acquisition of rival clinical lab testing firm Westcliff

As part of its ongoing efforts to ensure competition in US health care markets, the Federal Trade Commission has challenged Laboratory Corporation of America’s (NYSE: LH) $57.5 million acquisition of rival clinical laboratory testing company Westcliff Medical Laboratories, which was completed in June this year, alleging that the transaction would harm competition in Southern California.

The FTC announcement came the same day that LabCorp said it has completed the $925 million acquisition of Genzyme’s genetic testing business genetic testing business (The Pharma Letter September 14). "Closing the acquisition of Genzyme Genetics firmly establishes LabCorp as the premier genetics and oncology laboratory in the United States and further strengthens LabCorp's leadership position in personalized medicine," David King, chairman and chief executive of LabCorp, said in a statement.

“Competition is one of the keys to keeping health care costs under control and ensuring that patients receive high-quality care, and laboratory services are an essential part of that,” said Richard Feinstein, Director of the FTC’s Bureau of Competition. “Physicians use lab testing to help diagnose patients and accurately evaluate their conditions, and the FTC is committed to protecting competition in this important sector.”