Mar 21, 2011 | Laboratory Operations, Laboratory Pathology
Celera is not a medical laboratory, but develops biomarkers and molecular diagnostics tests
For the second time since the New Year, Quest Diagnostics Incorporated (NYSE:DGX) has announced an acquisition. Last Friday, Quest Diagnostics said it had agreed to purchase Celera Corp. (NASDAQ:CRA) for a purchase price that Reuters reported to be $657 million.
What makes this acquisition different from those typically done by Quest Diagnostics and its major competitor, Laboratory Corporation of America (NYSE:LH), is that Celera is primarily not a provider of clinical laboratory tests. Rather, it specializes in identifying biomarkers that can be used to develop genetic tests. It is active in the fields of cardiovascular diseases, cancers and neurological disorders. Berkeley HeartLab is one clinical laboratory testing division owned by Celera.
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Dec 11, 2009 | Laboratory Management and Operations, Laboratory News, Laboratory Pathology
Noted Humorist Garrison Keillor Encounters the Truth of Inadequate Funding for Clinical Laboratory Testing Services
It is widely recognized by pathologists and clinical laboratory managers in the United States and abroad that medical laboratory testing is a “high touch” clinical service. Each day, lots of patients interact with laboratory professionals to provide specimens. Physicians know that their own successful medical practice is dependent on a smooth-functioning and high-quality pathology testing service that delivers accurate, reliable lab test results.
Another truth in today’s healthcare system is selective underfunding of certain clinical laboratory testing services in the United States. In this country, pathologists and clinical lab managers are all too familiar with this situation. What might be at the top of the list of inadequately-reimbursed laboratory procedures is venipuncture. It has been years since Medicare, Medicaid, and private payers have reimbursed the venipuncture procedure at a level that is close to the cost of providing that service to patients.
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Feb 2, 2007 | Laboratory News, Laboratory Pathology
Quest Diagnostics Incorporated announced yesterday that it purchased Sweden-based HemoCue for about $420 million. This purchase marks Quest Diagnostics’ first serious entry into the in vitro diagnostics (IVD) market and positions it in an unexpected segment of diagnostic testing.
HemoCue has global revenues of about $90 million per year, according to Quest Diagnostics. Its products are sold internationally. It provides point-of-care blood tests for hemoglobin, along with products for professional glucose and microalbumin testing. HemoCue’s handheld systems are used to screen for anemia and other conditions in physicians’ offices, blood banks, hospitals, diabetes clinics, and public health clinics. The company is currently developing hand-held systems to measure white blood cell count. Quest Diagnostics purchased HemoCue from a European-based private equity firm, EQT II BV.
Quest Diagnostics intends to integrate HemoCue’s handheld systems with its Care360 Portal, which gives doctors access to lab and medication records, patient medical history, and remote ordering of lab testing or prescriptions. Quest Diagnostics also said the deal will allow it to expand into international markets. “Technology is enabling diagnostic testing to move closer to the patient, and the acquisition of HemoCue and its exciting product pipeline gives us a strong presence in this emerging market,” said Surya N. Mohapatra, Chairman and CEO of Quest Diagnostics.
Dark Daily notes that Quest Diagnostics has been under stress to defend the business it gets from doctors who serve United HealthCare patients. The timing and nature of this acquisition have the appearance of a strategic move to shift the attention of investors away from Quest’s challenges with its United HealthCare book of business. As well, HemoCue’s $90 million in annual revenues will also help to replace revenue that Quest Diagnostics is expected to lose as a result of being excluded as a UnitedHealth provider in most markets since January 1, 2007.
