Item 7.01 Regulation FD Disclosure
Labcorp (NYSE: LH), a leading global life sciences company, today announced
actions that its Board of Directors (the Board) and management team have taken
to enhance shareholder returns. This includes:
a.Initiating a dividend in the second quarter of 2022. The Board is targeting a
dividend payout ratio of between 15-20% of adjusted earnings;
b.Authorizing a $2.5 billion share repurchase program. As part of this program,
$1 billion will be repurchased under an accelerated share repurchase plan;
c.Implementing a new LaunchPad business process improvement initiative,
targeting savings of $350 million over the next three years;
d.Providing a longer-term outlook in connection with the announcement of
Labcorp's 2021 year-end results in addition to the Company's annual guidance;
e.Providing additional business insights through enhanced disclosures beginning
with Labcorp's first quarter 2022 results; and
f.Continuing a commitment to profitable growth through investments in science,
innovation and new technologies.
The above actions follow the conclusion of Labcorp's thorough review of its
structure and capital allocation strategy, as announced in March 2021. As part
of the comprehensive review, extensive discussions were held with third parties
and the Board considered a wide range of options, including significant
acquisitions, divestitures, spinning off businesses, as well as spinning and
merging those businesses with strategic partners. The Board unanimously
concluded that the Company's existing structure is in the best interest of all
stakeholders at this time and represents compelling opportunities to grow and
create significant shareholder value. Management and the Board are committed to
continuing to evaluate all avenues for enhancing shareholder value.
Item 9.01 Financial Statements and Exhibits.
Exhibit Exhibit Name
Exhibit 99.1 Press release dated December 9, 2021 issued by Labcorp
--------------------------------------------------------------------------------
© Edgar Online, source Glimpses