Quest Diagnostics 2006 Annual Report Download - page 7

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which฀has฀been฀an฀important฀element฀in฀our฀effort฀
to฀ build฀our฀ brand฀ and฀ raise฀ awareness฀directly฀
with฀patients,฀physicians,฀hospitals฀and฀payers.฀
Another฀ way฀ we฀ raise฀ awareness฀ of฀ the฀ value฀ of฀฀
diagnostic฀testing฀is฀by฀using฀our฀large฀database฀
of฀ test฀ results฀ to฀ identify฀ broad฀ health฀ trends.฀
During฀ 2006฀ we฀ issued฀ the฀ Quest฀ Diagnostics฀
Health฀Trends฀Diabetes฀Report,฀which฀found฀that฀
between฀2001฀and฀2005฀people฀with฀diabetes฀who฀
visit฀health฀professionals฀appeared฀to฀be฀doing฀a฀
better฀job฀of฀managing฀their฀disease฀over฀time.
Visualizing฀the฀Future
It฀has฀been฀10฀years฀since฀our฀company฀was฀spun฀
out฀ as฀ an฀ independent฀ company฀ by฀ Corning฀฀
Incorporated.฀ During฀ the฀ past฀ decade,฀ we฀ have฀
learned฀ that฀ leading฀ change฀ is฀ one฀ of฀ the฀ most฀
challenging฀things฀our฀company฀can฀ do,฀but฀we฀
have฀also฀proved฀that฀it฀can฀also฀be฀one฀of฀the฀most฀
rewarding.฀ A฀ $10,000฀ investment฀ in฀ Quest฀
Diagnostics฀ in฀ January฀ 1997฀ was฀ worth฀ approxi-
mately฀$145,000฀at฀the฀end฀of฀2006.฀During฀that฀
time,฀ revenues฀ have฀ grown฀ from฀ $1.5฀ billion฀ to฀
$6.3฀billion,฀and฀we฀have฀joined฀the฀Fortune฀500,฀
S&P฀500฀and฀Dow฀Jones฀Sustainability฀World฀Index.
I฀strongly฀believe฀that฀our฀greatest฀achievements฀
lie฀ahead.฀We฀are฀the฀leader฀in฀a฀growing฀industry฀
with฀only฀13%฀of฀the฀overall฀market.฀We฀will฀take฀a฀
strong฀company฀and฀make฀it฀stronger.฀Our฀primary฀
focus฀is฀to฀grow฀and฀strengthen฀our฀clinical฀diag-
nostic฀testing฀business฀by฀focusing฀on฀opportunities฀
in฀cancer฀testing฀and฀esoteric฀clinical฀testing.฀At฀
the฀same฀time,฀we฀are฀beginning฀to฀develop฀new฀
areas฀for฀growth฀in฀near-patient฀testing฀and฀inter-
national฀diagnostic฀testing฀services.
We฀are฀responding฀to฀important฀industry฀trends.฀
Technology฀is฀enabling฀diagnostic฀testing฀to฀take฀
place฀ closer฀ than฀ ever฀ to฀ the฀ patient.฀ Imagine฀
bringing฀ diagnostic฀ testing฀ to฀ remote฀ locations฀
around฀the฀world฀where฀electricity฀is฀scarce฀and฀
professional฀ medical฀ care฀ even฀ more฀ so.฀ Physi-
cians฀are฀using฀advanced฀technology฀to฀conduct฀
tests฀ in฀ their฀ offices฀ and฀ at฀ patient฀ bedsides.฀฀
Patients฀are฀taking฀more฀ responsibility฀ for฀their฀
personal฀health,฀and฀they฀want฀faster฀answers฀to฀
medical฀questions.฀And฀hospitals฀are฀now฀able฀to฀
perform฀ more฀ esoteric฀ tests฀ in-house฀ that฀ once฀
were฀ the฀ exclusive฀ province฀ of฀ the฀ specialized฀฀
esoteric฀testing฀laboratory.
This฀ market฀is฀in฀its฀early฀stages฀and฀is฀ growing฀
rapidly.฀To฀help฀us฀meet฀growing฀demand,฀early฀in฀
2007฀ we฀ acquired฀ HemoCue,฀ a฀ leading฀ global฀
provider฀in฀near-patient฀testing฀for฀hemoglobin.฀฀
HemoCue฀builds฀on฀our฀previous฀acquisitions฀of฀฀
Focus฀Diagnostics฀and฀Enterix.฀We฀are฀using฀our฀
relationships฀ with฀ physicians฀ to฀ enter฀ near-฀
patient฀testing.
The฀global฀market฀for฀diagnostic฀testing฀is฀large,฀
highly฀ fragmented฀ and฀ growing.฀ The฀ emerging฀
middle฀class฀in฀many฀developing฀countries฀has฀both฀
the฀desire฀and฀ability฀to฀pay฀for฀diagnostic฀tests.฀
Quest฀Diagnostics฀has฀the฀expertise,฀resources฀and฀
discipline฀required฀to฀cultivate฀strong฀business฀in฀
these฀regions.฀Moreover,฀we฀have฀the฀experience฀
to฀ help฀shape฀ the฀diagnostic฀testing฀industry฀ in฀
emerging฀markets,฀ thereby฀ gaining฀a฀ solid฀ foot-
hold฀and฀a฀strong฀competitive฀stance.
Today฀we฀have฀one฀strong฀growth฀platform฀based฀
on฀diagnostic฀testing฀services.฀Near-patient฀testing฀
products฀ and฀international฀services฀ will฀provide฀
two฀new฀areas฀for฀growth฀which฀will฀be฀important฀
contributors฀ for฀ our฀ future.฀ We฀ will฀ be฀ helping฀
more฀ patients฀ and฀ more฀ doctors฀ more฀ often฀ in฀
more฀places.
We฀ have฀ a฀ proven฀ strategy฀ based฀ on฀ Patients,฀
Growth฀and฀People.฀We฀have฀the฀financial฀strength฀
to฀execute฀our฀strategy฀and฀position฀ourselves฀for฀
sustainable฀growth.฀We฀have฀the฀courage฀to฀lead,฀
the฀compassion฀for฀our฀patients฀and฀an฀unwavering฀
commitment฀to฀growth.
I฀am฀excited฀about฀the฀future฀and฀the฀opportuni-
ties฀that฀lie฀ahead.฀Thank฀you฀for฀your฀continued฀฀
support฀ and฀ your฀ confidence฀ as฀ we฀ begin฀ our฀
second฀decade.
Take฀care,
Surya฀N.฀Mohapatra,฀Ph.D.
Chairman,฀President฀and฀Chief฀Executive฀Officer
OF฀CARE360฀PATIENT-CENTRIC฀
PHYSICIAN฀PORTAL
>100,000฀
Registered฀
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Quest฀Diagnostics฀2006฀Annual฀Report฀—฀page฀5