It was a productive second quarter for MED-TOX Scientific, Inc., of St. Paul, Minnesota. Total revenue climbed 18.1%, to $25.2 million, compared to $21.3 million for the same period in 2009. Operating income grew to $1.5 million, an increase of 176%. Known as a drugs of abuse testing company, MED-TOX saw revenue growth of 5.6% from this source during the quarter. Revenue grew from $21.3 million in Q2-09 to $25.2 million in Q2-10. This is a sign that the workforces of employers are stabilizing after the deep recession.
MORE ON: MEDTOX
There is more to the MED-TOX story than its ongoing role in the drugs of abuse testing market. In 2008, MED-TOX launched a clinical laboratory testing business that is concentrated in and around the Minneapolis-St. Paul Metro. This business has grown steadily. MEDTOX reported that revenues from this clinical laboratory business climbed 41% during second quarter 2010, reaching $7.6 million. By contrast, clinical lab revenues were only $5.4 million for Q2-09. In just 30 months, MEDTOX has built its clinical lab revenue to an annualized rate of about $30 million per year.
CLEVELAND CLINIC STARTS BUILDING $75 MILLION LAB
Last week, officials at the Cleveland Clinic broke ground on the long-delayed construction of a new laboratory building of 135,000 square feet. This laboratory facility is designed to support a major expansion of lab testing. The Cleveland Clinic intends to grow its laboratory outreach in the greater Cleveland metropolitan area. It also wants to increase its role as a national provider of reference and esoteric testing services. (See TDR, March 16, 2009.)
- Ken Botta resigned his position as Chief Executive Officer of SED Laboratories in Albuquerque, New Mexico. Botta started at SED in 2007. He previously held executive positions at AmeriPath, Inc.; Dynacare, Inc.; and Laboratory Corporation of America.
- John Glaser will become CEO of Siemens Health Services on August 16. Glaser comes to Siemens after serving for 15 years as the Chief Information Officer for Partners HealthCare System in Boston, Massachusetts. Glaser was also an advisor to David Blumenthal, M.D., during the time when Blementhal headed up the Office of the National Coordinator for Health Information Technology.
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