Sonic Buys ProPath

by Jondavid Klipp | Jan 15, 2022 | Lab Acquisition, ProPath, Sonic Healthcare

Sonic Buys ProPath

Sonic Healthcare (Sonic) acquired 100% of ProPath Services (Dallas, TX) for an undisclosed price on December 17, 2021. ProPath had been one of the largest pathologist-owned anatomic pathology labs in the nation. ProPath’s annual revenue is approximately $110 million. Its 500+ employees, including ~50 pathologists, serve roughly 1,000 physicians and 26 hospital clients across 45 states.

ProPath was established as an anatomic pathology practice in 1966. Growth has been almost entirely organic, including the expansion into clinical laboratory services in 2017. In early 2020 ProPath acquired New England Tissue Issue, an AP company located in Massachusetts.

ProPath’s pathologists will join as colleagues with Sonic’s existing group of 330 pathologists in the US. ProPath’s leadership team, including Chairman and CEO Cory Roberts, MD, are expected to hold senior roles at Sonic Healthcare USA.

The acquisition of ProPath follows Sonic’s purchase of Aurora Diagnostics for $540 million in January 2019.

Coker Capital (Charlotte, NC) served as a financial advisor to ProPath, while Haynes and Boone LLP (Dallas, TX) provided legal services.

Publicly-Traded Lab Revenue Falls 1.4% In First-Half 2020

by Jondavid Klipp | Sep 15, 2020 | BioReference Labs, Labcorp, Quest Diagnostics, Sonic Healthcare

Publicly-Traded Lab Revenue Falls 1.4% In First-Half 2020

On a combined basis, 20 publicly-traded labs reported a revenue decrease of 1.4% to $9.8 billion during the first six months of 2020 (after adjusting for acquisitions), according to financial reports collected by Laboratory Economics.

Among five national clinic al labs (Quest Diagnostics, LabCorp, Sonic, BioReference and Enzo), combined revenue fell by 3.1% (after adjusting for acquisitions). BioReference had the strongest revenue growth, up 18% to $421.8 million, driven by Covid-19 PCR testing. BioReference processed approximately 2.2 million Covid-19 PCR tests during the first six months of 2020.

Among 15 specialty and genetic testing labs, combined pro-forma revenue increased by 7.3%.

Pro-forma revenue growth was fastest at DermTech, up 98.4% to $2.4 million. Other fast-growing companies included Castle Biosciences, up 54.9% to $30.1 million; Guardant Health, up 47.7% to $133.8 million; and CareDx, up 39.6% to $80.2 million.

Top 25 Fastest-Growing Labs by Medicare Part B Volume of Services