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Liquid Prep Testing Market Causing Much Aggravation

SEVERAL RECENT ISSUES of THE DARK REPORT addressed issues that resonated with our clients and regular readers. The mailbag has been plenty full of late. These responses are interesting in their own right. Among those with a point to make is Laboratory Corporation of America Holdings…

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Lab Director Takes a Stand On Patented Genetic Testing

THIS LETTER APPEARED in the mailbag after our special intelligence briefing on how genetics will transform healthcare and before our look at how high-priced specialty esoteric testing is causing budget headaches for regional labs. (See TDRs, December 30, 2002 and …

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Quest Finally Owns Unilab, New Market Cycle To Begin

PERSISTENCE FINALLY PAID OFF for Quest Diagnostics Incorporated. On February 26, it took ownership of Unilab Corporation, capping almost 11 months of effort. In completing this acquisition, Quest Diagnostics completes the two blood brothers’ acquisition sweep of m…

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The Lab Industry’s Market Share Juggernauts

MOST OF YOU KNOW THAT 2002 WAS AN UNEXPECTEDLY ACTIVE YEAR for public laboratory company acquisitions. The entire rank of mid-market public laboratory companies actively selling routine testing services to physicians’ offices was swept from the board by Quest Diagnostics Incorporated and L…

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Quest Ready to Move on Unilab, Announces Its 2002 Earnings

PERSISTENCE IS ABOUT TO PAY OFF for Quest Diagnostics Incorporated. After ten months of effort, it expects to finalize its acquisition of Unilab Corporation within weeks. But the Unilab acquisition soon to close looks different than the acquisition that was original…

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Why There’s “Bad Blood” Against National Labs

I AM FREQUENTLY ASKED BY WALL STREET TYPES why there seems to be latent, even deep-seated animosity between a large number of local laboratories and both of the two blood brothers. They wonder why, for example, hospital laboratories aren’t more interested in doing collaborative ventures with either…

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Several Major Surprises Mark Events of 2002

CEO SUMMARY: It was a year when the two blood brothers got much bigger and expanded market share by buying their largest competitors. With patient safety as the goal, employers began active steps to force hospitals, physicians, and other healthcare providers to use quality management syst…

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Quiet Changes To Ripple Drugs-of-Abuse Market

CEO SUMMARY: Drugs-of-abuse (DOA) testing is an intensely-competitive market poised for significant change. Historically, national lab companies have been the major players and used rock-bottom prices to control the nation’s biggest corporate DOA clients. But since this line of testing …

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More Consolidation: Where Will It Lead?

I CERTAINLY DID NOT FORESEE ALL THE LAB ACQUISITION ACTIVITY that occurred during 2002. Compared to recent years, both Quest Diagnostics Incorporated and Laboratory Corporation of America have been on a buying spree this year. Quest Diagnostics acquired Amer…

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Another Lab Acquisition: LabCorp To Buy DIANON

CEO SUMMARY: Laboratory Corporation of America Holdings will pay almost $598 million to buy DIANON Systems, Inc. of Stratford, Connecticut. With this move, anatomic pathology becomes a high profile growth target for LabCorp. During the past eight years, DIANON Systems has built a national…

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