Quest Diagnostics 2009 Annual Report Download - page 18

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
integrated solutions to physicians, hospitals and clinics for the testing methods that are most appropriate for each
patient and practice.
We develop and manufacture products that enable healthcare professionals to make healthcare diagnoses,
including products for point-of-care, or near patient, testing for the professional market. Since July 2006, we have
acquired several companies, including Focus Diagnostics, Enterix, and HemoCue, that enhance our offerings and
better enable us to serve these markets. We will consider additional acquisitions or licenses of selective products
to complement the products and services we provide. The results of several of our point-of-care tests can be
entered into our Care360TM system and hospital laboratory information systems so that they are available in
electronic medical records. We intend to offer additional data links in the future. This will differentiate our point-
of-care test products from other products that are not integrated into an electronic repository.
Focus Diagnostics is a leading provider of infectious disease testing that has established a reputation for
being first to introduce new tests to the market, including diagnostic tests for Lyme disease, West Nile Virus,
SARS and, most recently, H1N1. Focus Diagnostics develops, manufactures and markets diagnostic products, such
as HerpeSelectELISA tests that detect patient antibodies to specific types of herpes simplex virus, which can be
performed on a variety of instrument platforms. Focus Diagnostics sells its diagnostic products to large academic
medical centers, hospitals and commercial laboratories globally. In 2009, Focus entered into agreements with 3M
Corporation for global human diagnostic rights to a compact integrated cycler for use with real time polymerase
chain reaction (“PCR”) assays. The first product released on the integrated cycler is a second generation test for
H1N1 influenza virus which received Emergency Use Authorization for sale by the FDA and CE mark for sale in
Europe. This test is sold under the SimplexaTM brand name. We intend to develop and pursue FDA clearance and
CE marking for additional tests to be sold under the SimplexaTM brand name.
HemoCue manufactures and distributes point-of-care testing products. HemoCue is the leading global
provider in point-of-care testing for hemoglobin, with a growing market share for glucose, microalbumin and
white blood cell testing. In 2009, HemoCue added the AvieTM hemoglobin A1c test, which has received FDA
510(k) clearance and a waived status under the Clinical Laboratory Improvement Amendments of 1988 (“CLIA”),
to its diabetes test suite. The measurement of hemoglobin is important for blood donors and for patients being
considered for transfusion therapy, or undergoing dialysis or chemotherapy, where instant test results can lead to
immediate treatment decisions. The HemoCue handheld systems are used in physician’s offices, blood banks,
hospitals, diabetes clinics and public health clinics. In developing countries, these systems are used as the primary
means to screen for anemia. Approximately one-half of HemoCue products are sold outside the United States.
We believe that HemoCue has a strong product development pipeline, based on its pioneering use of its patented
microfluidic systems. HemoCue received FDA 510(k) clearance for its White Blood Cell Analyzer, a whole-blood
test performed on finger-stick samples that can assist physicians by providing a total white blood cell count. We
are applying for CLIA-waived status for this product which, if granted, would permit physicians to use these
products in a much larger segment of physician offices.
Enterix, an Australia-based company, manufactures the InSurefecal immunochemical test (FITTM) for
screening for colorectal cancer.
International. We have laboratory facilities in Gurgaon, India; Heston, England; Mexico City, Mexico; and
San Juan, Puerto Rico. These laboratories support clinical testing in their local markets and our clinical trials
business. We have an office in Ireland that supports our activities in that country, and also have sales
representatives dedicated to offering our point-of-care test products in countries outside the United States. We see
opportunities to bring our experience and expertise in diagnostic testing and point-of-care products to international
markets, particularly developing countries where the testing markets are highly fragmented and less mature,
including by leveraging existing facilities to serve new markets.
Healthcare Information Technology. We empower healthcare organizations and clinicians with information
technology solutions that can help improve patient care and medical practice, including through our Care360
suite of products and the ChartMaxxelectronic document management system for hospitals. We provide
interoperable technologies that help health information exchanges and physicians enter, share and access clinical
information without costly IT implementation or significant workflow disruption. These solutions offer access to a
large national healthcare provider network, including hundreds of electronic health record (EHR) applications and
approximately 160,000 networked physicians using Quest Diagnostics’ Care360 connectivity products. We believe
that these products enhance the value we provide to our customers and result in increased customer loyalty by
providing more convenient ordering and reporting of clinical tests, greater convenience in electronically
prescribing medication and providing better access to clinical information.
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