Sep 3, 2010 | Laboratory News, Laboratory Pathology
Meanwhile, both Quest Diagnostics and LabCorp report second quarter declines in specimen volume
Fewer patients visiting physician offices during second quarter 2010 is considered to be one reason why specimen volume declined at clinical pathology laboratory testing giants Quest Diagnostics Incorporated (NYSE: DGX) and Laboratory Corporation of America (NYSE: LH) during that three-month period.
For second quarter, LabCorp reported a 2% decline in specimen volume, along with a 4.2% increase in revenue. At Quest Diagnostics, the specimen volume decline was 1.3% and revenues declined by 1.4% in the second quarter 2010, compared to second quarter 2009.
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Jul 26, 2010 | Laboratory News, Laboratory Pathology, Uncategorized
Less funding for clinical pathology laboratory testing is just one of several market developments
Australia’s competitive market for clinical pathology laboratory testing seems poised for some major changes. Unfolding events are upsetting the pathology testing status quo in at least three ways. Caught in the middle of these disruptive forces are Australia’s big three of pathology testing: Healthscope Limited (ASX:HSP), Primary Health Care Limited (ASX:PRY), and Sonic Healthcare, Ltd. (ASX:SHL ).
The first change is linked to the federal government’s decision in recent years to scrap a decades-long pathology testing reimbursement arrangement. In 2009, it allowed the most recent price contract with the pathology testing industry to expire without renewal. Then, in November 2009, the government instituted a reduction in pathology testing fees.
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Jun 23, 2010 | Laboratory News, Laboratory Pathology
Anatomic pathology firm hopes proposed sale of stock will bring in up to $150 million
Anatomic pathology company Aurora Diagnostics, Inc., of Palm Beach Gardens, Florida, just announced a new credit facility that will give it access to as much as $335 million should all conditions be met. Aurora Diagnostics hopes to raise $150 million from an initial public offering (IPO) of its stock, for which it filed registration documents in April.
Aurora Diagnostics was founded in June 2006, by former Ameripath, Inc., executives James New and Marty Stefanelli and was originally funded by Summit Partners and GSO Capital Partners. Over the past four years, Aurora Diagnostics says it has acquired 17 pathology practices. Its revenue for 2009 totaled $171 million, with EBIDTA (earnings before interest, depreciation, taxes, and amortization) of $28 million and net income of $9 million.
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Jun 14, 2010 | Laboratory News, Laboratory Pathology
Healthscope bids also fuel speculation of a big clinical pathology transaction
Last week in Australia, investment insiders shared rumors that Quest Diagnostics Incorporated (NYSE: DGX) was interested in acquiring Sonic Healthcare Ltd. (ASX: SHL). However, press stories discounted the possibility of a deal between these two billion-dollar clinical pathology laboratory behemoths. Neither company has issued a public statement addressing this issue.
In assessing the possibility of Quest Diagnostics acquiring Sonic Healthcare, the Sydney Morning Herald (SMH) threw cold water on the idea. It pointed out that Sonic’s stock price is trading at a multiple of 10.8 times earnings before interest, taxes, depreciation, and amortization (EBITDA). That would make Sonic an expensive purchase for Quest Diagnostics, since Quest’s share price trades at a multiple of seven times EBITDA. Further, SMH’s reporter pointed out that Sonic’s market capitalization of A$5.7 billion would make it a major acquisition for Quest Diagnostics, which has a market capitalization of U.S.$9.5 billion.
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Jan 28, 2010 | Laboratory Management and Operations, Laboratory News, Laboratory Pathology
Carilion Clinic and Novant Health will continue to own equity in the new clinical laboratory company
It was big news in the clinical laboratory industry yesterday when Spectrum Laboratory Network of Greensboro, North Carolina announced a merger with Carilion Labs of Roanoke, Virginia. The combined enterprise will have annual revenue of approximately $300 million and immediately becomes one of the nation’s larger clinical laboratory companies.
As announced by the parties involved, Carilion Clinic will hold a 33% ownership interest in the new laboratory company. Novant Health, which holds a minority interest in Spectrum Laboratory Network, will continue as an equity owner and will have a seat on the new board of directors, once the two laboratory organizations are merged into one company.
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