Quest Diagnostics 2006 Annual Report Download - page 6

Download and view the complete annual report

Please find page 6 of the 2006 Quest Diagnostics annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 131

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131

02 03 04 05 06
97 98 99 00 01
3.50
3.00
2.00
2.50
1.50
1.00
0.50
0
Net Earnings Per Diluted Share*
(in dollars)
YE02 YE03 YE04 YE05 YE06
YE97 YE98 YE99 YE00 YE01
Stock Price Appreciation
(in dollars, adjusted for splits)
0
10
20
30
40
50
60
70
0
10
20
30
40
50
60
70
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
31%
10-Year฀CAGR
Focus฀ Diagnostics฀ has฀ been฀ recognized฀ world-
wide฀for฀its฀leadership฀in฀infectious฀and฀immuno-
logic฀diseases฀such฀as฀herpes,฀SARS฀and฀avian฀flu,฀
and฀its฀ expertise฀in฀developing฀new฀diagnostics.฀
Focus฀ also฀ has฀ a฀ unique฀ capability฀ to฀ perform฀
testing฀ for฀ the฀ effectiveness฀ of฀ vaccines฀ under฀฀
development.฀ Focus฀ will฀ further฀ expand฀ our฀฀
capabilities฀ and฀ strengthen฀ our฀ position฀ as฀ the฀
leading฀ provider฀ and฀developer฀of฀esoteric฀ tests฀
to฀hospitals฀and฀physicians.
We฀are฀driving฀organic฀growth฀in฀diagnostic฀test-
ing฀ by฀ continuing฀ to฀ leverage฀ our฀ sales,฀ service฀
and฀ science.฀ We฀ have฀ created฀ specialized฀ sales฀฀
organizations฀ to฀ serve฀ medical฀ specialists฀ and฀฀
to฀ provide฀ information฀ technology฀ services฀ and฀
genetic฀testing.
We฀are฀working฀with฀large฀health฀plans฀to฀under-
stand฀and฀meet฀their฀needs฀using฀our฀considerable฀
capabilities.฀ While฀ price฀ is฀ always฀ an฀ important฀
element฀for฀any฀health฀plan,฀it฀is฀still฀only฀one฀of฀a฀
number฀ of฀ elements,฀ including฀ quality,฀ service,฀
access฀and฀convenience฀that฀add฀up฀to฀a฀unique฀
experience฀for฀ patients,฀ doctors฀ and฀payers.฀ We฀
are฀ helping฀ health฀ plans฀ improve฀ patient฀ care฀
and฀reduce฀overall฀healthcare฀spending฀through฀
collaborations฀to฀screen฀health฀plan฀members฀for฀
colorectal฀ cancer฀ using฀ our฀ proprietary฀ InSure฀
test฀ and฀ increase฀ the฀ use฀ of฀ e-prescribing฀ using฀
our฀Care360™฀Physician฀Portal.฀Early฀in฀2007,฀we฀
renewed฀ our฀ long-term฀ relationship฀ with฀ Aetna฀
based฀ on฀ the฀ access฀ we฀ provide฀ to฀ high-quality,฀
cost-effective฀lab฀services.
Hospital฀testing฀represents฀another฀major฀oppor-
tunity.฀Today฀we฀are฀the฀world’s฀largest฀laboratory฀
serving฀hospitals,฀and฀we฀are฀poised฀to฀continue฀
to฀ grow฀ this฀ business.฀ Hospitals฀ appreciate฀ our฀
ability฀ to฀ combine฀ the฀ quality฀ and฀ expertise฀ of฀
our฀ world-renowned฀ Nichols฀ Institute฀ esoteric฀
testing฀laboratories฀with฀the฀logistics฀and฀customer฀
service฀capabilities฀of฀Quest฀Diagnostics.
We฀are฀continuously฀improving฀our฀value฀propo-
sition฀ to฀ both฀ physicians฀ and฀ hospitals฀ through฀
advanced฀ healthcare฀ information฀ technology.฀
Today,฀ more฀ than฀ 100,000฀ doctors฀ use฀ our฀
Care360฀Physician฀Portal฀for฀real-time฀lab฀results฀
and฀patient-centric฀reports,฀as฀well฀as฀to฀connect฀
to฀ other฀ medical฀ professionals.฀ The฀ Care360฀฀
Physician฀Portal฀also฀enables฀physicians฀to฀review฀
a฀patient’s฀medication฀history,฀clinical฀notes฀and฀
messages฀ from฀ other฀ physicians.฀ The฀ physician฀
can฀also฀electronically฀prescribe฀medications฀right฀
from฀ the฀ patient฀ chart,฀ reviewing฀ many฀ drug-to-
drug฀and฀allergy-to-drug฀interactions฀and฀sending฀
the฀prescription฀directly฀to฀a฀local฀pharmacy฀or฀
pharmacy฀benefit฀management฀company.
Because฀It฀Matters
All฀labs฀are฀not฀the฀same.฀Our฀firm฀belief฀is฀that฀a฀
laboratory฀test฀is฀not฀a฀commodity.฀Someone’s฀life฀
depends฀ on฀ the฀ results.฀ Our฀ job฀ is฀ to฀ provide฀
accurate฀and฀timely฀results฀to฀physicians฀and฀ensure฀
that฀our฀patients฀are฀treated฀with฀care฀and฀com-
passion.฀Our฀commitment฀to฀service,฀quality,฀con-
venience฀ and฀ innovation฀ is฀ how฀ we฀ distinguish฀
ourselves฀every฀day฀with฀doctors฀and฀patients.
Our฀industry฀is฀not฀ranked฀on฀service฀metrics฀by฀
independent฀firms.฀So฀we฀commissioned฀Nation-
al฀ Analysts฀ Worldwide,฀ a฀ well-known฀ market฀ re-
search฀ firm,฀ to฀ survey฀ physicians฀ to฀ find฀ out฀ if฀
they฀had฀a฀preference฀between฀the฀two฀largest฀na-
tional฀ laboratories.฀ The฀ majority฀ of฀ physicians฀
expressed฀a฀preference฀for฀one฀of฀the฀labs.฀Among฀
those฀with฀a฀preference,฀doctors฀overwhelmingly฀
chose฀Quest฀Diagnostics฀over฀our฀largest฀national฀
competitor.1฀ Additionally,฀ doctors฀ rated฀ Quest฀
Diagnostics฀higher฀on฀every฀one฀of฀the฀11฀metrics฀
in฀the฀survey.
Doctors฀appreciate฀the฀“Quest฀Diagnostics฀differ-
ence,”฀ and฀ we฀ want฀ everyone฀ to฀ know฀ why.฀ We฀
launched฀ our฀ first฀ national฀ image฀ campaign,฀
1,350%฀Increase
STOCK฀PRICE฀APPRECIATION
since฀1997
*฀This฀measure฀excludes฀special฀charges฀and฀reflects฀adjustment฀for฀the฀2002฀change฀in฀goodwill฀accounting.฀A฀reconciliation฀of฀this฀measure฀to฀the฀
most฀directly฀comparable฀measure฀under฀generally฀accepted฀accounting฀principles฀can฀be฀found฀after฀the฀2006฀Annual฀Report฀on฀Form฀10-K.
1฀
The฀survey฀queried฀a฀nationally฀representative฀sample฀of฀general฀and฀family฀practitioners,฀internists,฀obstetricians฀and฀gynecologists฀who฀have฀
had฀experience฀with฀both฀Quest฀Diagnostics฀and฀LabCorp฀over฀the฀six฀months฀ended฀in฀January,฀2007.
page฀4