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I'm curious how outsource labs are hurting our industry. They have a business model built around service...See more instead of manufacturing and focus on those core competencies rather than product development. If they are able to pay full price for your product and then upcharge it to doctors then that means you have some opportunities to do the same.
If this particular lab is in your direct target market then it might not be in your best interest to provide them with your quality products, you would just be competing against yourself. There are of course other factors to also consider on whether this would be a good business move as well. Strain on personnel, equipment, or space are important factors to think about.
Also, there are a lot of opportunities out there right now to hire strong technicians at good rates, the additional business this outsource group brings in short term might help you take advantage of this anomaly in our industry.
After evaluating all the pros and cons objectively you can best determine if it's the right move for you. And while Van Gogh likely never sold one of his paintings with someone else's name on it, I would be surprised if there haven't been countless mid-level artists over the years that have.