News, Analysis, Trends, Management Innovations for
Clinical Laboratories and Pathology Groups

Hosted by Robert Michel

News, Analysis, Trends, Management Innovations for
Clinical Laboratories and Pathology Groups

Hosted by Robert Michel
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Rumors Link Quest Diagnostics and Sonic Healthcare in Some Type of Deal

Healthscope bids also fuel speculation of a big clinical pathology transaction

Last week in Australia, investment insiders shared rumors that Quest Diagnostics Incorporated (NYSE: DGX) was interested in acquiring Sonic Healthcare Ltd. (ASX: SHL). However, press stories discounted the possibility of a deal between these two billion-dollar clinical pathology laboratory behemoths. Neither company has issued a public statement addressing this issue.

In assessing the possibility of Quest Diagnostics acquiring Sonic Healthcare, the Sydney Morning Herald (SMH) threw cold water on the idea. It pointed out that Sonic’s stock price is trading at a multiple of 10.8 times earnings before interest, taxes, depreciation, and amortization (EBITDA). That would make Sonic an expensive purchase for Quest Diagnostics, since Quest’s share price trades at a multiple of seven times EBITDA. Further, SMH’s reporter pointed out that Sonic’s market capitalization of A$5.7 billion would make it a major acquisition for Quest Diagnostics, which has a market capitalization of U.S.$9.5 billion.


Boutique Medicine Venture Generates Marketing Intelligence for Procter & Gamble

Consumer products giant acquires 100% ownership of concierge medicine company

Clinical laboratories and pathology groups may soon be serving physician practices owned by Procter & Gamble (P&G) (NYSE:PG). That’s because the consumer products giant now owns 100% of MDVIP, a nationwide concierge practice of 350 doctors in 28 states.

The deal is noteworthy because it further expands Procter & Gamble’s presence in healthcare. In 2006, P&G invested $325 million in a joint venture with Inverness Medical (NYSE:IMA). The joint venture announced its intention to develop and market diagnostic test kits for use by consumers that can be sold in retail outlets. At the time, The Dark Report wrote that, “P&G’s interest in consumer self testing is based on its belief that consumer demand for health services and healthcare products will soar in the coming decades.”  (See The Dark Report, June 4, 2007, “ Inverness Buys Biosite, Has New Venture with P&G” )


Sonic Healthcare Enters New England with Latest Clinical Laboratory Acquisition

Agreement to acquire East Side Clinical Laboratory is a reminder that Sonic remains an active buyer of clinical laboratories

It’s another clinical lab acquisition and a new regional market for Sonic Healthcare Limited (ASX:SHL). Yesterday the Australian-based lab company established a beachhead in New England when it acquired East Side Clinical Laboratory, based in Providence, Rhode Island.


Health System Sells Centrex Clinical Laboratories to LabCorp

Consolidation continues in the lab testing sector that serves physicians’ offices

Last week it was disclosed that the health system which owns Centrex Clinical Laboratories, Inc. is selling its laboratory testing business to Laboratory Corporation of America (NYSE: LH ). Faxton-St. Luke’s Healthcare stated that it expected the transaction would be finalized by the end of the year.

Several times in recent years, Faxton-St. Luke’s Healthcare shopped Centrex Clinical Labs to interested buyers. For that reason, news of the sale to LabCorp did not surprise informed observers.


Your New Resource for Everything Useful in Lab and Pathology Management

With this first Dark Daily briefing, we have launched a new resource for laboratory administrators, pathologists, practice administrators, and anyone working in the laboratory industry. Dark Daily’s goal is to provide you with useful information that helps you better manage your laboratory, as well as develop your own effectiveness.

Each quick-to-read, incisive briefing will give you valuable insights. Some days we may cover breaking news that affects you and your laboratory organization. Other times, your Dark Daily will alert you to a useful management innovation or technique that you can use to make a positive difference. Of course, each Dark Daily briefing electronically delivered to you will have that unique perspective that has made The Dark Report the premier source of business intelligence for the laboratory industry’s most successful leaders, pathologists, and managers.

On your Dark Daily team is Robert L. Michel and Sylvia Christensen. They collaborate on every word you’ll read and their objective is to provide you with the information resource you’ve long wanted—but could never find. In fact, Dark Daily exists because so many of you asked us for a regular, electronic delivery of timely news, analysis, and management advances in clinical laboratory and anatomic pathology.

You have our promise that each Dark Daily briefing will prove useful to you. You are likely to find your personal perspective on important issues is strengthened because Dark Daily provides you with context and analysis that is difficult to find in sources besides The Dark Report.

Now, to keep our promise of brevity, it is time to close. You are welcome to contact Robert ( and Sylvia ( any time. Let us know when we’ve provided you with something particularly useful. Alert us to stories or events that you want us to cover. And, if you disagree with our views, feel free to fire off an email and tell us what you think!

Yours truly,

Robert & Sylvia