LABCORP HOLDINGS INC. (LH) Risk Factors

Recent key developments

Concrete developments — dated events, named agreements and instruments, legal proceedings — that LABCORP HOLDINGS INC. surfaced in its latest filing.

• PAMA rate reductions are frozen for 2026 and capped at 15% per year for 2027-2029.
• At December 31, 2025, outstanding senior notes totaled $5.2 billion in aggregate principal, of which $500.0 million is payable within the next 12 months.December 31, 2025
• A $1.0 billion revolving credit facility is subject to negative financial covenants limiting subsidiary indebtedness.
• The Spin-off must qualify for tax-free treatment under Sections 355 and 368(a)(1)(D) of the U.S. Internal Revenue Code.
• A 50% or greater change in ownership of the Company’s stock, Fortrea’s stock, or a successor’s stock within two years of the Spin-off can trigger corporate-level gain.
• The AMCA Incident resulted in costs, pending and threatened litigation, and regulatory inquiries.
• FDA issued a final rule on April 29, 2024 asserting authority to regulate LDTs as medical devices with a four-year phase-out of enforcement discretion.April 29, 2024
• Legal challenges led to the recission of the 2024 LDT final rule.
• Ravgen Inc. filed a patent infringement lawsuit in October 2020 alleging infringement of two Ravgen-owned U.S. patents.October 2020
• A September 2022 jury verdict awarded Ravgen $272.0 million in damages.September 2022
• In May 2023 the court awarded Ravgen additional enhanced damages of $100.0 million.May 2023
• In January 2025 the court awarded Ravgen post-verdict supplemental damages of $2.6 million.January 2025
• The court awarded an ongoing royalty of $100 per test through the life of the patent at issue.
• A proposed rule to clarify the HIPAA Security Rule may increase compliance obligations.