Quest Diagnostics 2007 Annual Report Download - page 11

menu of more than 3,000 tests. We believe that customers and payers prefer testing providers that offer a
comprehensive range of tests and services and the most convenient access to those services and that, as a
result, we will be able to profitably enhance our market position.
•Continue to lead in medical innovation and information technology solutions. We are a leading innovator
in the clinical testing market with unmatched medical and technical expertise. We have the most
comprehensive test menu and leading medical and scientific experts available for consultation. Over the
past several years, we have expanded our business in more complex and faster-growing testing areas,
including gene-based and esoteric testing and anatomic pathology services, reducing the percentage of our
revenues from routine testing services. We remain a leading innovator in the clinical testing industry by
continuing to introduce new tests, technology and services, including in the evolving area of personalized
and targeted medicine. As an industry leader with the largest and broadest U.S. network and expanding
presence outside the U.S., we believe we are the best channel for developers of new equipment and tests
to introduce their products to the marketplace. Through our relationship with the academic community and
pharmaceutical and biotechnology firms, we believe that we are a leader in bringing technical innovation
to the market. For example, in 2007, we introduced the ClariSuretest for identifying chromosome
abnormalities associated with 85 developmental disorders in children. The ClariSure test is a laboratory-
developed test that uses proprietary technologies and laboratory-developed arrays.
We empower healthcare organizations and clinicians with information technology solutions that can
improve patient care and medical practice. We develop differentiated products, such as ChartMaxx威and
the Care360Physician Portal, that are designed to support the creation and management of electronic
patient records, by bringing together, in one patient-centric view, information that includes physician’s
records and laboratory and hospital data. Our Care360products, which are used by more than 125,000
physicians, enable physicians to order diagnostic tests and review test results online. In addition, the
Care360 Physician Portal enables physicians to electronically prescribe medication, view clinical and
administrative information from various sources, file certain documents into a patient-centric health record
maintained in our repository and share confidential information with medical colleagues. We believe that
these products enhance the value we provide to our customers and result in increased customer loyalty.
•Expand our geographic reach. In addition to growth opportunities in the U.S., we see opportunities to
expand our presence in the United Kingdom and Mexico and to bring our experience and expertise in
diagnostic testing to international markets, particularly to developing countries where the testing markets
are highly fragmented and less mature. During 2007 we established a presence in the growing market in
India, and we will offer clinical testing for life insurance companies, clinical trials testing for global
pharmaceutical companies and advanced esoteric testing for hospitals, physicians and patients.
•Expand our diagnostic scope. Technology advances are enabling testing to move closer to the patient and
are becoming increasingly available and reliable. This enables more timely and effective decisions, with
the opportunity to improve patient care and reduce medical costs. Since July 2006, we have acquired three
businesses that offer point-of-care, or near patient, testing: HemoCue, Focus Diagnostics and Enterix. We
intend to expand their product menus, develop novel technology platforms and systems to meet the needs
of our clients as well as pursue potential additional acquisitions to supplement our offering. We are
developing electronic data links to our Care360 system, enabling the integration of tests performed in a
near patient setting with those performed in our laboratories. We are well-positioned to offer choice and
integrated solutions to physicians, hospitals, clinics and retail customers for the testing methods that are
most appropriate for each patient and practice.
In support of our strategy, in recent years we have undertaken several acquisitions. Our recent acquisitions
are enabling us to expand our capabilities, further leverage our assets and differentiate our Company from our
competition, diversify our revenues and accelerate our growth. We are focused on completing the successful
integration of these acquisitions to realize their full value. We expect to continue to selectively evaluate
acquisitions in the United States and in select international markets.
BUSINESS OPERATIONS
Quest Diagnostics is the leading provider of diagnostic testing, information and services in the United States,
providing insights that enable patients and physicians to make decisions to improve health services. We offer
patients and physicians the broadest access to diagnostic testing services through our nationwide network of
laboratories and owned patient service centers. The Company provides interpretive consultation through the
largest medical and scientific staff in the industry, with approximately 900 M.D.s and Ph.D.s around the country.
We are the leading provider of gene-based testing and other esoteric testing, anatomic pathology services,
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