Sierra Oncology Significantly Expands Clinical Development Program

On February 27, 2018 Sierra Oncology, Inc. (Nasdaq: SRRA), a clinical stage drug development company focused on advancing next generation DNA Damage Response (DDR) therapeutics for the treatment of patients with cancer, reported significant progress in the advancement of its strategic pipeline of drug assets (Press release, Sierra Oncology, FEB 27, 2018, View Source [SID1234524263]).

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The company announced noteworthy progress in the Dose Escalation Phase 1 portions for both of its ongoing Phase 1/2 clinical trials evaluating its potential best-in-class Chk1 inhibitor, SRA737. The company announced expansion of the efficacy-oriented Phase 2 portions of both trials, which will now target aggregate enrollment of approximately 200 patients across ten cancer indications. The company also announced it is planning to initiate a Phase 1b/2 clinical trial in the fourth quarter of 2018 that will evaluate SRA737 in combination with ZEJULA (niraparib) for the treatment of metastatic castration-resistant prostate cancer (mCRPC).

In addition, the company announced it is planning to submit an Investigational New Drug (IND) for its Cdc7 inhibitor, SRA141, in the second half of 2018 in order to initiate a Phase 1/2 clinical trial, focused initially on the treatment of colorectal cancer.

Sierra is hosting a Program Update event today at 10:00 am ET in New York where it will provide an update on the progress of its portfolio of assets, with specific reference to its clinical development program for SRA737. The Sierra management team will be joined by Dr. Udai Banerji, Chief Investigator for the company’s ongoing SRA737 Phase 1/2 clinical trials, and Dr. Alan D’Andrea, a member of Sierra’s DDR Advisory Committee. A live webcast of the event will be available at www.sierraoncology.com.

"We are pleased to report encouraging progress in the advancement of both of our next generation DDR assets. In particular, SRA737 has demonstrated an emerging preclinical and clinical profile which appears competitively differentiated in comparison to other clinical stage Chk1 inhibitors, which gives us confidence to significantly expand its development program both as monotherapy and in a variety of combination settings," said Dr. Nick Glover, President and CEO of Sierra Oncology. "In support of this expansion, we are adding further clinical centers in 2018, with the goal of reporting preliminary clinical data in the fourth quarter of 2018."

"The safety profile for SRA737 has been highly promising, both as monotherapy and in combination with low dose gemcitabine. These observations are entirely consistent with the asset’s mechanism-of-action and preclinical toxicology data, supporting a broad potential therapeutic window for SRA737," Dr. Barbara Klencke, Chief Development Officer, Sierra Oncology. "The Phase 2 efficacy-oriented portion of the monotherapy trial is also underway and focuses on cancers that are driven by genetic mutations that result in high replication stress, which have been associated with synthetic lethality to Chk1 inhibition."

"Given our continued understanding of Chk1 biology, we are also adding a CCNE1-driven ovarian cancer cohort to the monotherapy study," added Dr. Mark Kowalski, Chief Medical Officer, Sierra Oncology. "Women with tumors harboring this genetic profile have limited therapeutic options; they typically become resistant to platinum-based chemotherapy and do not commonly harbor mutations in BRCA1/2 genes. However, given the key role of CCNE1 in driving replication stress, SRA737 may be effective in these tumor types. We are encouraged by preclinical data we have generated that reinforce this potential utility."

SRA737-01 Phase 1/2 Monotherapy Trial: Trial Update and Expansion Plans

This trial consists of two phases, a safety-oriented Dose Escalation Phase 1 in unselected ‘all-comer’ patients and an efficacy-oriented Cohort Expansion Phase 2 in patients with genetically-defined tumors that harbor genomic alterations linked to increased replication stress and hypothesized to be more sensitive to Chk1 inhibition. The company will provide an update on the Dose Escalation Phase 1 portion today.

Dose Escalation has proceeded through multiple dose levels and SRA737 has been well-tolerated from 20 mg QD to 1000 mg QD as monotherapy.
The majority of reported adverse events (AEs) have been Grade 1 or Grade 2 in severity.
Most commonly observed AEs (≥ 20%; all reported causalities) were fatigue and GI events (diarrhea, nausea, vomiting).
Grade 3 adverse events have included neutropenia (2 patients), nausea (2 patients), and diarrhea (1 patient).
Serious Adverse Events (at least possibly related by Investigator assessment) included Grade 3 neutropenia (probably related; one patient) and Grade 3 heart failure/cardiomyopathy (possibly related) in a single patient with rapid disease progression.
Two Dose Limiting Toxicities (DLTs) were reported at 1300 mg QD (inability to receive 75% of the planned SRA737 dose due to GI intolerability).
No evidence of emergent or cumulative toxicity and/or declining tolerability was observed with up to 8 cycles of drug administered, supportive of potential for extended dosing.
Dose escalation is now complete; 1000 mg QD & 500 mg BID cohorts are currently being compared in order to optimize the SRA737 dose regimen.

The Cohort Expansion Phase 2 portion of the trial is enrolling genetically-defined patients into indication specific cohorts, including advanced or metastatic:

castration-resistant prostate cancer (mCRPC);
high grade serous ovarian cancer (HGSOC);
non-small cell lung cancer (NSCLC);
head and neck squamous cell carcinoma (HNSCC) or squamous cell carcinoma of the anus (SCCA); and
colorectal cancer (mCRC).

The company announced today the addition of a sixth indication specific cohort, CCNE1-driven HGSOC. During the Program Update, the company will present preclinical data demonstrating that SRA737 has significant anti-tumor activity and a profound survival benefit in CCNE1-driven HGSOC preclinical models.

Sierra is also expanding the number of sites recruiting patients into the trial from three active sites (as of the third quarter of 2017) to a planned fifteen active sites at leading centers across the United Kingdom, to support its increased enrollment to 20 patients in each of the six genetically-defined cohorts. In total, 120 patients are expected to be enrolled into the Phase 2 portion of the trial. The company reported that 20 patients had been enrolled into this portion of the study to date and that enrollment was in line with the anticipated prevalence of the gene mutations targeted. The Cohort Expansion Phase 2 portion of the study is expected to report preliminary clinical data in the fourth quarter of 2018.

SRA737-02 Phase 1/2 Low Dose Gemcitabine Combination Trial: Trial Update and Expansion Plans

This clinical trial consists of three phases:

1. A Standard Dose Triplet Combo Dose Escalation Phase 1 evaluating a combination of SRA737 with standard dose gemcitabine and cisplatin in patients with solid tumors.

The company reported that this phase has concluded.

2. A Low Dose Gemcitabine (LDG) Combo Dose Escalation Phase 1 evaluating safety in ‘all-comer’ non-selected patients, where cohorts of 3 to 6 patients are being administered escalating doses of SRA737 on an intermittent schedule in addition to low dose gemcitabine (5-10% of the standard gemcitabine dose) until the combination maximum tolerated dose (MTD) is reached.

The company reported that significant progress has been made in the LDG Combo Dose Escalation Phase 1, and the combination regimen has been very well-tolerated.

The majority of reported AEs have been Grade 1 or Grade 2 in severity.
Most commonly observed AEs (≥ 20%; all reported causalities) were diarrhea, anemia, thrombocytopenia, fatigue, influenza-like illness, nausea, neutropenia and vomiting.
Only one Grade 3 treatment related AE (neutropenia) was observed, at 40 mg SRA737/300 mg/m2 gemcitabine.
Related SAEs included a Grade 1 fever (possibly related) and a Grade 2 DVT (possibly related).
No evidence of emergent or cumulative toxicity and/or declining tolerability was observed with up to 5 cycles of drug administered, supportive of potential for extended dosing.
No DLTs have been reported in any LDG dose escalation cohort and dose escalation continues.

3. A Low Dose Gemcitabine Combo Cohort Expansion Phase 2, that will explore the preliminary efficacy of SRA737 plus low dose gemcitabine in prospectively enrolled genetically-defined patients with tumors that harbor genomic alterations hypothesized to confer sensitivity to Chk1 inhibition via synthetic lethality.

The company reported that this phase is anticipated to commence in the second quarter of 2018 and has been expanded to target enrollment of 80 genetically-selected patients across four indications, including advanced or metastatic:

urothelial carcinoma;
small cell lung cancer (SCLC);
soft tissue sarcoma;
cervical/anogenital cancer.

An update on the study is expected to be provided in the fourth quarter of 2018.

SRA737 PARPi Combination Program Initiation and Supply Agreement
The company also announced execution of a supply agreement with Janssen Research & Development, LLC for the supply of TESARO’s ZEJULA (niraparib), an orally administered poly ADP-ribose polymerase (PARP) inhibitor, facilitating the initiation of a combination trial of SRA737 with niraparib in patients with prostate cancer, expected in the fourth quarter of 2018.

The trial is to be led by Professor Johann de Bono, Regius Professor of Cancer Research, Head of the Division of Clinical Studies and Professor in Experimental Cancer Medicine at The Institute of Cancer Research and The Royal Marsden NHS Foundation Trust.

During the Program Update today, the company will present preclinical data supporting SRA737’s synergistic activity in combination with PARPi in a model of PARPi acquired resistance. Additional preclinical data supporting this combination will be presented at the American Association of Cancer Research (AACR) (Free AACR Whitepaper) Annual Meeting 2018.

SRA737 Combination with Immuno-Oncology
During the Program Update today, the company will also present preclinical data providing evidence of biological synergy between SRA737 and immune checkpoint blockade. Sierra is currently designing a clinical study for this combination, which potentially could be submitted to regulatory authorities in the fourth quarter of 2018.

SRA141 Program Update
The company continues to advance SRA141, its potent, selective, orally bioavailable small molecule inhibitor of Cell division cycle 7 kinase (Cdc7), an emerging DDR target with exciting potential in cancer. During the Program Update today, the company will present supportive preclinical research for SRA141 demonstrating noteworthy anti-cancer activity in oncology models, generated in preparation for an IND submission expected in the second half of 2018, with an initial clinical focus on the treatment of colorectal cancer.

10-K – Annual report [Section 13 and 15(d), not S-K Item 405]

Acceleron Pharma has filed a 10-K – Annual report [Section 13 and 15(d), not S-K Item 405] with the U.S. Securities and Exchange Commission (Filing, 10-K, Acceleron Pharma, 2018, FEB 27, 2018, View Source [SID1234524200]).

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MannKind Corporation Reports 2017 Fourth Quarter and Full Year Financial Results

On February 27, 2018 MannKind Corporation(NASDAQ:MNKD) reported financial results for the fourth quarter and full year ended December 31, 2017 (Press release, Mannkind, FEB 27, 2018, View Source [SID1234524244]).

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Fourth Quarter 2017 Results

For the fourth quarter of 2017, Afrezza net revenue was $4.5 million, an increase of 125% compared to the third quarter of 2017 and 238% compared to the fourth quarter of 2016. Included in the fourth quarter net revenue is a favorable adjustment for a change in estimate of $1.4 million. The change in estimate relates to obtaining new and more comprehensive data regarding the inventory in the distribution channel – specifically inventory in the retail channel. This data indicated that the amount of inventory in the distribution channel was less than had been previously estimated using syndicated prescription data. As of December 31, 2017, the amount of Afrezza shipped to wholesale and retail channels, but not yet recognized as net revenue, was $3.0 million, the same amount as September 30, 2017. A reconciliation of gross to net revenues can be found in the Management’s Discussion and Analysis of Financial Condition and Results of Operations section of the form 10-K for the year ended December 31, 2017.

Cost of goods sold was $5.0 million in the fourth quarter of 2017 compared to $4.6 million in the third quarter of 2017 and $1.6 million in the fourth quarter of 2016, an increase of $0.4 million and $3.4 million respectively. Cost of goods sold during these periods is greater than the associated product sales due to the under-utilization of our manufacturing facility.

Research and development expenses were $3.5 million in the fourth quarter of 2017 compared to $4.4 million in the third quarter of 2017. The $0.9 million decrease was primarily due to a $0.6 million decrease in clinical study expenses and a $0.4 million decrease in compensation expenses. Research and development expenses were $1.6 million in the fourth quarter of 2016, representing a period-over-period increase of $1.9 million which was primarily due to a $1.3 million increase in compensation costs, a $1.4 million increase in consultant and supply costs and a $0.3 million increase in facilities costs, all due to increased clinical studies, partially offset by a decrease of $1.0 million related to a one-time FDA submission fee for a label expansion incurred in 2016 that did not recur in 2017.

Selling, general and administrative (SG&A) expenses were $23.3 million for the fourth quarter of 2017 compared to $17.7 million for the third quarter of 2017. The $5.6 million increase was primarily due to $5.0 million in selling expenses associated with our first direct-to-consumer television advertising campaign in the fourth quarter of 2017. SG&A expenses in the fourth quarter of 2016 were $15.3 million representing a period-over-period increase of $8.0 million which was primarily due to the $5.0 million DTC TV campaign and growth in our commercial infrastructure.

The net loss for the fourth quarter of 2017 was $32.8 million, or $0.28 per share based on 116.5 million weighted average shares outstanding, compared to a $32.9 million net loss in the third quarter of 2017 or $0.31 per share based on 104.7 million weighted average shares outstanding. During the fourth quarter of 2016, we had net income of $54.0 million, or $0.56 per share based on 95.7 million weighted average shares outstanding. The net income in the fourth quarter of 2016 included net collaboration revenue of $10.2 million related to our license and collaboration agreement with Sanofi and a $72.0 million gain from the extinguishment of debt owed to Sanofi pursuant to a settlement agreement.

Full Year 2017 Results

Due to the termination of the Sanofi license and collaboration agreement in early 2016 and our commencement of commercial activities for Afrezza in the third quarter of 2016, a comparative analysis for Afrezza product revenue and commercial support between the year ended December 31, 2017 and the prior year is not meaningful.

For the year ended December 31, 2017, total net revenue of $11.7 million was comprised of $9.2 million of Afrezza net revenue, $1.7 million from the net revenue of surplus bulk insulin to a third party, $0.6 million from the sale of certain oncology intellectual property, and $0.3 million from collaboration net revenue.

Research and development expenses were $14.1 million for the year ended December 31, 2017 compared to $14.9 million for the prior year. The $0.8 million decrease was primarily due to a $3.6 million decrease in research and development expenses associated with a reduction in workforce in 2016, and a one-time FDA submission fee for label expansion of $1.0 million incurred in 2016. These decreases were partially offset by a $2.5 million increase in clinical trial expenses, a $0.7 million increase in expenses incurred for the development of manufacturing improvements.

Selling, general and administrative expenses were $75.0 million for the year ended December 31, 2017 compared to $46.9 million for the prior year, an increase of $28.1 million primarily due to the creation of a commercial support infrastructure after termination of the Sanofi license and collaboration agreement.

The loss on foreign currency translation is related to our purchase commitment for insulin which is denominated in Euros. For the year ended December 31, 2017, the loss was $13.6 million as compared to a gain of $3.4 million in the prior year, a $17.1 million change due to the unfavorable movement of the U.S. dollar-Euro exchange rate.

The net loss for the year ended December 31, 2017 was $117.3 million, or $1.13 per share based on 104.2 million weighted average shares outstanding, compared to net income for the prior year of $125.7 million, or $1.37 per share based on 92.1 million weighted average shares outstanding. The net income for the prior year included net revenue – collaboration of $171.1 million and a gain on the extinguishment of debt of $72.0 million due to the recognition of previously deferred revenue following the termination of the Sanofi license and collaboration agreement.

Cash and Cash Equivalents

Cash and cash equivalents at December 31, 2017 increased to $43.9 million compared to $22.9 million at December 31, 2016, primarily due to cash inflows of $57.7 million of net proceeds from a registered direct offering of common stock, $0.5 million through sales under the at-the-market equity offering facility, $30.6 million received from Sanofi pursuant to a settlement agreement, $16.7 million from the sale of our Valencia, CA facility, $15.4 million from a net increase of debt, and cash received from revenue of $12.5 million offset in part by commercial and general corporate spending of $95.6 million. In addition to the $43.9 million in cash and cash equivalents, the Company had $4.4 million of restricted cash at December 31, 2017 of which $3.2 million was released in January 2018 following a conversion of Facility Financing Obligation debt to equity. The net cash used in operating activities for the fourth quarter of 2017 was $30.0 million.

2H 2017 Results vs. Guidance

Afrezza gross revenue was $8.3 million for the six months ended December 31, 2017 compared with a range of $9-$14 million.
Afrezza net revenue was $6.4 million for the six months ended December 31, 2017 compared with a range of $6-$10 million.
Net cash used in operating activities was $30.0 million in the fourth quarter 2017 and $23.3 million in the third quarter 2017 totaling $53.3 million compared with a range of $48-$56 million.

Conference Call

MannKind will host a conference call and presentation webcast to discuss these results today at 5:00 p.m. Eastern Time. To participate in the live call by telephone, please dial (888) 771-4371 or (847) 585-4405 and use the participant passcode: 46307898. Those interested in listening to the conference call live via the Internet may do so by visiting the Company’s website at www.mannkindcorp.com.

A telephone replay of the call will be accessible for approximately 14 days following completion of the call by dialing (888) 843-7419 or (630) 652-3042 and use the participant passcode: 4630 7898#. A replay will also be available on MannKind’s website for 14 days.

Supernus Announces Record Full Year 2017 Financial Results, Exceeding Operating Earnings Guidance

On February 27, 2018 Supernus Pharmaceuticals, Inc. (NASDAQ:SUPN), a specialty pharmaceutical company focused on developing and commercializing products for the treatment of central nervous system (CNS) diseases, reported record financial results for the fourth quarter and full year 2017 and associated Company developments (Press release, Supernus, FEB 27, 2018, View Source [SID1234524264]).

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Commercial Update

Fourth quarter 2017 product prescriptions for Trokendi XR and Oxtellar XR, as reported by IQVIA (formerly IMS), totaled 198,715, a 47.3% increase over the fourth quarter of 2016. Full year 2017 product prescriptions for Trokendi XR and Oxtellar XR, as reported by IQVIA, totaled 672,709, a 33.8% increase over full year 2016.

Prescriptions

Q4 2017 Q4 2016 Change % FY 2017 FY 2016 Change %
Trokendi XR 162,208 101,869 59.2% 533,541 378,584 40.9%
Oxtellar XR 36,507 33,081 10.4% 139,168 124,270 12.0%
Total 198,715 134,950 47.3% 672,709 502,854 33.8%

Source: IQVIA

Net product sales for the fourth quarter of 2017 were $86.3 million, a 41.2% increase over $61.1 million in the same period in the prior year. Net product sales for full year 2017 were $294.1 million, a 40.0% increase over $210.1 million in 2016.

Net Product Sales ($millions)

Q4 2017 Q4 2016 Change % FY 2017 FY 2016 Change %
Trokendi XR $69.1 $46.7 48.0% $226.5 $158.4 43.0%
Oxtellar XR $17.2 $14.4 19.4% $67.6 $51.7 30.8%
Total $86.3 $61.1 41.2% $294.1 $210.1 40.0%

"The strong financial results achieved in the fourth quarter and full year of 2017 reflect the successful launch of Trokendi XR in migraine, as well as continued double digit growth by Oxtellar XR," said Jack Khattar, President and CEO of Supernus Pharmaceuticals. "These results substantiate the value our products provide to patients and the impressive execution of our commercial organization."

Progress of Product Pipeline

Overall enrollment in the four Phase III trials for SPN-812, a novel non-stimulant for the treatment of ADHD, is approximately 38% complete. The program consists of four three-arm, placebo-controlled trials: two pediatric trials and two adolescent trials. The Company expects to continue enrollment through mid-2018 and to have data from this Phase III program available by the first quarter of 2019.

Enrollment continues in both Phase III trials (P301 and P302) for SPN-810, currently in development for Impulsive Aggression in pediatric patients who have ADHD. Enrollment in P301 and P302 is approximately 80% and 65% complete, respectively, and is expected to continue through mid-2018, with data from the trials anticipated by the first quarter of 2019. In addition, a Phase III trial for SPN-810 treating Impulsive Aggression in adolescents who have ADHD is anticipated to start mid-2018. This adolescent trial is not expected to materially affect the overall timing of the regulatory submission process for SPN-810.

Regarding Oxtellar XR, the investigator-sponsored trial in bipolar disorder is expected to complete enrollment by year end 2018.

"Our strategy in 2018 is to advance SPN-810 and SPN-812 through Phase III clinical development, moving us closer to our goal of delivering from our current pipeline two novel products, both addressing billion-dollar market opportunities," said Jack Khattar. "In addition, we remain focused on progressing Oxtellar XR as a potential therapy for bipolar disorder, another clinically important and significant commercial opportunity for Supernus."

Operating Expenses

Research and development expenses in the fourth quarter of 2017 were $16.2 million, as compared to $13.3 million in the same quarter last year, and, for the full year 2017, $49.6 million, as compared to $42.8 million for 2016. These increases were due primarily to the initiation of the four Phase III clinical trials for SPN-812 in the second half of 2017.

Selling, general and administrative expenses in the fourth quarter of 2017 were $33.8 million, as compared to $29.1 million in the same quarter last year, and, for the full year 2017, $137.9 million as compared to $106.0 million in 2016. The increases for both periods were due primarily to the expansion of the salesforce by 40 salespeople, which was fully deployed in the fourth quarter of 2017, the development and production of promotional materials and marketing programs associated with the launch of the migraine indication for Trokendi XR, and an increase in share-based compensation expense.

Operating Earnings and Earnings Per Share

Operating earnings in the fourth quarter of 2017 were $34.3 million, a 110.4% increase over $16.3 million in the same period the prior year. Operating earnings in full year 2017 were $99.5 million, an 83.6% increase over $54.2 million in 2016. The improvement in operating earnings in both periods was primarily due to increased net product sales.

Net earnings (GAAP) in the fourth quarter of 2017 was $13.7 million, as compared to $14.3 million in the same period last year. Net earnings (GAAP) were $57.3 million in 2017, as compared to $91.2 million in 2016. The decrease was due primarily to the increase in research and development and selling, general and administrative spending, the increase in income tax expense as a result of the elimination of the valuation allowance against deferred tax assets in 2016, and the impact of the Tax Cuts and Jobs Act (Tax Act) in 2017.

Full year 2017 net earnings would have increased by 90.3% to $67.0 million, compared to $35.2 million in 2016, if net earnings were adjusted to eliminate the one-time favorable impact of releasing the valuation allowance on deferred tax assets in 2016, and eliminating the one-time unfavorable impact related to the passage of the Tax Act in 2017. (See reconciliation of GAAP net earnings to non-GAAP net earnings in the table at the end of this release).

Diluted earnings per share (GAAP) were $1.08 in 2017, compared to $1.76 in 2016. Adjusting for the aforementioned tax effects in 2016 and 2017, diluted earnings per share in 2017 would have increased by 85.3% to $1.26, compared to $0.68 in 2016. (See reconciliation of GAAP diluted EPS to non-GAAP diluted EPS in the table at the end of this release).

Weighted-average diluted common shares outstanding were approximately 53.5 million and 53.3 million in the fourth quarter and full year of 2017, respectively, as compared to approximately 52.0 million and 51.7 million in each of the respective prior year periods.

As of December 31, 2017, the Company had $273.7 million in cash, cash equivalents, marketable securities, and long term marketable securities, a $108.2 million increase over $165.5 million at December 31, 2016.

Financial Guidance

For full year 2018, the Company estimates net product sales, research and development expenses, operating earnings, and an effective tax rate as set forth below:

Net product sales in the range of $375 million to $400 million.
Research and development expenses of approximately $80 million.
Operating earnings in the range of $125 million to $135 million, including approximately $7 million of licensing and non-cash royalty revenue.
Effective tax rate of approximately 23% to 25%.

Conference Call Details

The Company will hold a conference call hosted by Jack Khattar, President and Chief Executive Officer, and Greg Patrick, Vice President and Chief Financial Officer, to discuss these results at 9:00 a.m. Eastern Time, on Wednesday, February 28, 2018. An accompanying webcast also will be provided.

Please refer to the information below for conference call dial-in information and webcast registration. Callers should dial in approximately 10 minutes prior to the start of the call.

Conference dial-in: (877) 288-1043
International dial-in: (970) 315-0267
Conference ID: 9385269
Conference Call Name: Supernus Pharmaceuticals Fourth Quarter and Full Year 2017 Earnings Conference Call

Following the live call, a replay will be available on the Company’s website, www.supernus.com, under "Investor Relations".

10-K – Annual report [Section 13 and 15(d), not S-K Item 405]

LabCorp has filed a 10-K – Annual report [Section 13 and 15(d), not S-K Item 405] with the U.S. Securities and Exchange Commission (Filing, 10-K, LabCorp, 2018, FEB 27, 2018, View Source [SID1234524201]).

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