Oct 17, 2012 | Laboratory Hiring & Human Resources, Laboratory Management and Operations, Laboratory News, Laboratory Operations, Laboratory Pathology, Laboratory Sales and Marketing
By purchasing this laboratory outreach business, Quest Diagnostics defends its turf in central Massachusetts and creates opportunity to consolidate testing from three medical lab facilities
Late yesterday, Quest Diagnostics Incorporated (NYSE: DGX) formally announced that had signed a “definitive agreement today to purchase the clinical laboratory outreach business of UMass Memorial Medical Center.” The laboratory is located in Worcester, Massachusetts and the parties expect the transaction to close within 90 days.
For UMass, the sale of its medical laboratory outreach business comes as part of an ongoing effort by UMass Memorial Health Care (UMMHC)—the parent health system—to divest a number of service lines that were in its health ventures division. This included home health and hospice services, along with the medical lab outreach business. (more…)
Aug 3, 2012 | Laboratory Hiring & Human Resources, Laboratory News, Laboratory Operations, Laboratory Pathology, Laboratory Sales and Marketing, Management & Operations
Medical labs and pathology groups using Sunquest LIS products likely to see positive changes from Sunquest’s fourth change in ownership since 2001
In what is likely to be the biggest deal in clinical laboratory and pathology informatics for this year, Roper Industries, Inc. (NYSE: ROP), of Sarasota, Florida, will acquire Sunquest Information Systems, Inc., of Tucson, Arizona. The purchase price is an impressive $1.42 billion dollars and the deal was announced on Monday this week.
Roper Industries will get a lot for its money. Sunquest holds a significant share of the nation’s market for laboratory information systems (LIS). Sunquest has also built a substantial market share in anatomic pathology informatics, anchored by its CoPath and PowerPath products.
Sales Price of $1.42 Billion for Sunquest and Its Clinical Lab Software
What some may consider an eye-popping sales price of $1.42 billion for Sunquest demonstrates that investor interest in all aspects of the clinical laboratory testing marketplace remains strong. In its second quarter conference call, executives at Roper Industries told the financial analysts that, during 2013, they expect Sunquest to generate $140 million in EBITDA (Earnings before Interest, Taxes, Depreciation, and Amortization). If true, that would indicate that the sales price is based upon approximately a 10-times multiple of Sunquest’s EBIDTA. (more…)
Jun 5, 2012 | Laboratory Hiring & Human Resources, Laboratory News, Laboratory Pathology, Laboratory Sales and Marketing
More consolidation in the clinical laboratory and pathology testing industry
It was announced yesterday that MEDTOX Scientific, Inc. (NASDAQ:MTOX), of New Brighton, Minnesota, will be acquired by Laboratory Corporation of America (NYSE:LH) of Burlington, North Carolina. The purchase price is approximately $241 million and represents a 37% premium over Medtox’s closing price of $19.70 on Friday, June 1.
Significantly, LabCorp’s purchase of MEDTOX removes one more independent laboratory company from the market. This continues the trend of medical laboratory consolidation that has marked the lab testing industry for the past 25 years. (more…)
May 18, 2012 | Laboratory News, Laboratory Operations, Laboratory Pathology, Laboratory Sales and Marketing
Pathology laboratories that are customers of Dako should take notice of the coming change of ownership
Once again, a major player in histology and anatomic pathology tissue processing has been acquired. Yesterday it was announced that Agilent Technologies Inc. (NYSE: A), of Santa Clara, California, will pay $2.2 billion to acquire Dako, the cancer diagnostics company in Glostrup, Denmark. It is the largest acquisition in Agilent’s 13-year history.
The high price paid for Dako is just the latest confirmation that Wall Street investors consider molecular diagnostics and anatomic pathology to be a high-growth, profitable sector of laboratory medicine. With 2010 revenues of $340 million, Agilent will pay $2.2 billion, which is a 5.8 times multiple of Dako’s annual revenue.
Pathologists and clinical laboratory managers following the histopathology market will recall that Ventana Medical Systems, Inc., was acquired by Roche Holding AG (RHHBY) in February, 2008. The purchase price was approximately $3.4 billion, representing a multiple of 10.2 times Ventana’s 2007 revenue of about $290 million.
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Oct 3, 2011 | Instruments & Equipment, Laboratory Instruments & Laboratory Equipment, Laboratory Pathology, Laboratory Sales and Marketing, Management & Operations
Sunquest immediately becomes nation’s largest provider of clinical pathology laboratory information systems
Earlier today, a deal was announced which has major implications for the anatomic pathology informatics marketplace. Sunquest Information Systems, Inc., released the news that it acquired the PowerPath pathology information software product from the Swedish company Elekta AB. Terms of the sale were not disclosed.
The PowerPath acquisition is significant because it immediately makes Sunquest the “big dog” of pathology information systems in the United States, when measured by the number of pathology clients.
In this country, three anatomic pathology laboratory information systems make up the largest part of the market. In alphabetical order, Cerner Corporation (NASDAQ: CERN) has its CoPath product; Elekta has just sold its PowerPath product, and Sunquest has the Sunquest version of CoPath.
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