Quest Diagnostics 2007 Annual Report Download - page 15

volume routine testing environment for improved testing, monitoring and treatment of patients with
steroidal and hormonal conditions. Using this platform, we developed and introduced a more accurate and
sensitive 25-OH Vitamin D test as well as a testosterone test for hypogonadal males, women and children,
because in these patient populations, fluctuations in minute amounts of testosterone can have important
health and treatment implications.
•Transplant Care. We continue to expand our transplantation menu and support by developing and offering
Chagas Disease screening and verification testing in addition to screening to improve the quality of the
donor blood supply. Chagas is a parasitic-based disease most commonly found in rural Latin American
countries. With the ease of travel to these areas, it is important to be able to screen the blood and tissue
donor supply, as patients can be infected through organ or tissue transplantation or blood transfusion.
•Coagulation. During 2007, the medical and other press highlighted the challenges establishing the correct
initial dosing levels for patients being placed on warfarin (Coumadin) therapy for a number of anti-
clotting medical needs. We were ready with the Cytochrome P450 2C9 and VKORC1 Mutation Analysis
test to determine an individual patient’s genetic factors that are important in predicting response and assist
in dosing. Through our Nichols Institute website, we were the first reference laboratory to provide a web-
link to the WarfarinDosing.org website to assist physicians in determining initial warfarin doses utilizing
the genetic test and other factors. In 2007 we included the availability of medical consultation on difficult
cases with specialized interpretation and results reports and showcased our expertise in a Case-Oriented
Symposium on Bleeding and Thrombosis.
We believe that offering a full range of gene-based and other esoteric tests, including new tests, strengthens
our market offering and market position and enhances our reputation as the nation’s leading test provider.
Clinical Trials Testing. We believe that we are the second largest provider of central laboratory testing
performed in connection with clinical research trials on new drugs and vaccines. Clinical research trials are
required by the U.S. Food and Drug Administration and other international regulatory authorities to assess the
safety and efficacy of new drugs and vaccines. We have clinical trials testing centers in the United States and the
United Kingdom, and we provide clinical trials testing in Australia, China and Singapore through affiliated
laboratories. We are launching a clinical trials testing center in India. Approximately 45% of our net revenues
from clinical trials testing in 2007 represented testing for GlaxoSmithKline plc (GSK). We are the primary
provider of central laboratory testing to support GSK’s clinical trials testing requirements worldwide.
Insurer and Employer Services. We believe that we are the largest provider of risk assessment services to
the life insurance industry in the United States and Canada. Our risk assessment services comprise underwriting
support services to the life insurance industry including teleunderwriting, specimen collection and paramedical
examinations, clinical testing, medical record retrieval, case management, motor vehicle reports, telephone
inspections, prescription histories and credit checks. The clinical tests performed and data gathered by us are
specifically designed to assist an insurance company in objectively evaluating the mortality and morbidity risks
posed by policy applicants. The majority of the testing is performed on specimens of individual life insurance
policy applicants, but also includes specimens of individuals applying for other types of insurance policies. We
also provide risk assessment services for insurance companies doing business in many countries outside the
United States. We plan in 2008 to commence providing risk assessment services in India. We operate
approximately 70 locations in the United States and Canada where we coordinate providing paramedical
examinations. We also contract with third parties for these services at approximately 120 locations across the
United States and Canada. We are actively performing paramedical examinations in select patient service centers
because many life insurance applicants prefer this option to a home or workplace examination.
We believe that we are the leading provider of clinical testing to employers for drugs-of-abuse. Our Drug
Testing Index, which is an annual report of our aggregate drug testing results, is used nationally by employers,
the federal government and the media to help understand and explain drug abuse among the nation’s workforce.
We also provide wellness testing to employers to enable employees to take an active role in improving their
health and empowering employers with aggregated health information. Our Blueprint for Wellness program offers
employers actionable data to power their health improvement and cost containment programs.
Diagnostic Products, Including Point-of-care, or Near Patient, Testing. Technology advances are enabling
testing to move closer to the patient and are becoming increasingly available and reliable. Over time, some
testing that is now done in clinical laboratories will cease to be performed in clinical laboratories and will be
performed closer to the patient. We believe that our point-of-care testing strategy will strengthen our relationship
with our customers by enabling us to offer more solutions that improve the effectiveness of our customers and
the care of their patients by enabling faster diagnosis and treatment. We are well-positioned to offer options and
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