Quest Diagnostics 2012 Annual Report Download - page 12

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Diagnostic Products.
We develop and manufacture products that enable healthcare professionals to make healthcare diagnoses, including
products for testing for the professional market. We offer these products in the United States and, through sales representatives
dedicated to offering our diagnostic test products in other countries, outside the United States. We have several companies,
including Focus Diagnostics, HemoCue and Celera, that serve these markets. We also manufacture and offer the InSure® fecal
immunochemical test (FITTM) for screening for colorectal cancer. We are well positioned to offer options and integrated
solutions to physicians, hospitals, IDNs and clinics for the testing methods that are most appropriate for each patient and
practice.
Focus Diagnostics develops, manufactures and markets diagnostic products 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. Focus Diagnostics has an agreement with 3M Corporation for global human diagnostic rights
to a compact integrated bench-top instrument for use with real time polymerase chain reaction assays. These tests are sold
under the Simplexa®brand name.
HemoCue® innovates, manufactures and distributes point-of-care testing products globally. 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. HemoCue offers its White Blood Cell Differential System in Europe. The HemoCue handheld systems are
used in physician's offices, blood banks, hospitals, diabetes clinics and public health clinics. Approximately sixty percent of
HemoCue products are sold outside the United States. In the fourth quarter of 2012, the assets and liabilities of HemoCue
were classified as held for sale. Accordingly, HemoCue is reported as discontinued operations in our consolidated financial
statements. In February 2013, we entered into an agreement to sell HemoCue.
Celera offers a number of market-leading high complexity molecular diagnostic products in segments such as HIV-1
drug resistance testing, reproductive genetics and transplantation. Celera products, which are distributed by a third party
worldwide, span the various levels of regulatory registrations and are sold to a broad spectrum of customers.
Healthcare Information Technology.
We provide interoperable technologies that help healthcare organizations and physicians enter, share and access
clinical information without costly information technology implementation or significant workflow disruption.
Our Care360®EHR product, which is certified as a complete electronic health record by the Certification
Commission for Health Information Technology, allows physicians to generate a complete record of a clinical patient
encounter, automates and streamlines the clinician's workflow, and allows for rapid deployment and implementation with
minimal workflow disruption. The solution allows doctors to electronically create, manage and distribute patient encounter
notes, including vital signs and progress notes. It captures lab and radiology results, provides clinical decision support tools and
allows doctors to send secure messages and clinical information to other practitioners and secure, Web-based laboratory results
to their patients' personal health records.
ChartMaxx,® our electronic document management system for hospitals, is being used by over 500,000 clinical and
administrative users in hospitals and other clinical locations.
Non-Commercial, Development State Drug Assets
As a result of its 2011 acquisition of Celera, the Company also has an interest in non-commercial, development state drug
assets. The Company is evaluating options with respect to these assets.
We have an agreement with Merck & Co., Inc. (Merck) under which Merck has a license to our intellectual property for
the development of small molecule inhibitors of cathepsin K for the treatment of osteoporosis. This agreement was entered into
by a predecessor of Celera that Celera acquired in November 2001. Under the agreement, we are entitled to receive future
milestone payments based on development progress for each potential product under the agreement. We are also entitled to
receive single digit royalty payments from the sale of drugs, if any, resulting from the program. This drug development
program entered Phase III clinical trials in September 2007 and Merck has disclosed its intent to file a New Drug Application in
2014. We do not control the development activities conducted by Merck. Merck may not successfully develop or
commercialize any compounds covered by the agreement, may not obtain needed regulatory approvals, and we may not receive
any further payments under this collaboration agreement.