Upload
finance34
View
558
Download
1
Embed Size (px)
DESCRIPTION
Citation preview
September 24, 2007
UBS 2007 Global Life Sciences Conference
Patients Growth People
»
»Safe Harbor Disclaimer
The statements in this presentation which are not historical
facts or information are forward-looking statements. These
forward-looking statements involve risks and uncertainties that
could cause the outcome to be materially different. Certain of
these risks and uncertainties are described in the Quest
Diagnostics Incorporated SEC filings, including our latest Form
10-K. Additional risks may arise from unanticipated events.
A copy of this presentation is available on our website at www.questdiagnostics.com
Patients Growth People
»
»Who is Quest Diagnostics?
Leader in Providing Healthcare Insights and SolutionsComprehensive Diagnostic Testing
Routine ——» Esoteric• Diagnose• Monitor• Predict• Prevent
Advanced Information Technology SolutionsImprove Care and Efficiency
Facilitate Introduction of New TherapeuticsClinical Trials Testing
Touching the Lives of Patients >150 Million Times in 2006
Patients Growth People
»
»Quest Diagnostics: The Leader
Source: Washington G-2 Reports and company estimatesQuest Diagnostics data is proforma for AmeriPath acquisition
US Diagnostic Testing Market: ~$45 B
Patients Growth People
»
»A Leader Across All Product Lines
$ in millions
Based on 2006 Actual Results, proforma for AmeriPath acquisition
Patients Growth People
»
»Favorable Industry Trends
Growing and Aging Population
Innovations in Science & Medicine
Personal Interest in Health
Convergence of Technologies• Genetic Predisposition• Diagnostic Testing• Diagnostic Imaging • Information Technology
Essential Healthcare Service
Influences >70% of Healthcare Decisions
Patients Growth People
»
»Why Quest Diagnostics?
Superior Patient Experience
Six Sigma Quality
Unparalleled Access and Distribution
Innovative Science & Medicine
Advanced Information Technology
Unique Value Proposition
Sustainable Advantage
Patients Growth People
»
»
Expanding Usage by Patientsof PSC Appointment Scheduling
Only Laboratory with Appointment Scheduling at All PSC’s
Reduces Patient Wait Time
Improves Patient Convenience
Patients Growth People
»
»Unparalleled Access and Distribution
31 Regional Laboratories2 Comprehensive Esoteric Laboratories150 Rapid Response Laboratories40 Outpatient AP Facilities in 19 States~2,100 Patient Service Centers- serving 45 million patients each year4,000 Vans and 20 Airplanes- making 95,000 stops each day45,000 Dedicated Employees
Serving 50% of US Hospitals & Physicians
Touching the Lives of Patients >150 Million Times in 2006
Patients Growth People
»
»
IOPs
PSCs
RRLsMain Labs∃∃∃∃∃∃∃∃∃∃∃∃∃∃∃∃∃∃∃∃∃∃∃∃∃∃∃∃∃∃∃∃∃∃∃∃∃∃∃∃∃∃∃∃∃∃∃∃∃
»
Patient Service Centersand Laboratory Network
~2,300 Laboratories and Patient Service Centers Serving Half of US Physicians
Patients Growth People
»
»Innovative Science and Medicine
Unmatched Medical & Technical Expertise
Multiple Channels to Access New TechnologyInternal Development – Nichols InstituteJoint Development RelationshipsLicensing/Distribution Relationships
Most Comprehensive Test MenuDisease State – CVD, Cancer & Infectious DiseaseTechnology
Leading Experts for Medical Consultation900 MDs & PhDs>30 Academic Associates
Broadest Product and Service Offering
Patients Growth People
»
»The Leader in Cancer Diagnostics
Improving Detection & Monitoring
National Network of ~800Board Certified Pathologists & Dermatopathologists
Centers of Excellence & StrongLocal Presence
Consultative Services
Comprehensive Menu
Unique Medical & Reporting Capabilities
Chart from American Cancer Society: Facts & Figures 2007
Patients Growth People
»
» Improving Patient Care
Potential to Reduce Medical Cost
Enabling More Targeted Medicine
Better Select Appropriate Drug TherapyRituxan® Rituxan® Sensitivity (CD20)Herceptin® Her2Campath® Campath Sensitivity (CD2)Irinotecan UGT1A1Warfarin CYP2C9
Better Manage TreatmentLeumeta ™Hepascore
Patients Growth People
»
»Expanding Near Patient Testing
Attractive benefits for hospitals and physician offices
Enables more timely and effective decisions
Expanding product menu
Combine with central lab results to createcomplete patienttesting record available tophysicians and plans
An Opportunity to Improve Patient Care and …
…to Reduce Medical Costs
Patients Growth People
»
»
Advanced Information Technology Solutions
• 1MM transactions processed daily• System availability of >99.995%
Solutions are highly scalable, reliable and secure
• Deploy product to >200 physician offices every week
• Customer Call Centers 7x24
Nationwide professional services: support, training and deployment
• 115,000 physician users• 50,000 physician offices• 300,000 registered caregivers
• > 120 hospital customers• 125,000 clinical & administrative users
Physician Offices:Labs and meds orders and results management
Hospitals:Health Information Exchange(HIE) system and KLAS award winning document managementsolution
Solutions for Physicians, Hospitals and Payors
Patients Growth People
»
»
>115,000 Physician Users and Growing by >1,000 Physicians Each Month
Electronic Connectivity: Care360 Network
»
Patients Growth People
»
»
Approach to DrivingProfitable Growth
Provide Differentiated Service at Competitive Prices
Focus on High Growth Segments
Introduce Important & Unique Tests & Services
Expand Geographic Scope
Expand Diagnostic Scope – Near Patient Testing
Increasing Loyalty with Patients, Physicians and Payers
Building a Sustainable Competitive Advantage
Patients Growth People
»
»
Moving to Higher Growth, Differentiated Services
2002 Revenue
Gene-based and Esoteric16%
Anatomic Pathology10%
Routine67%
Drugs of Abuse4%
Other3%
Total Revenue: $4.1 Billion
2006 Pro Forma Revenue
Gene-based and Esoteric17%
Anatomic Pathology17%
Routine56%
Drugs of Abuse3%
Other7%
Total Pro Forma Revenue: ~$7.0 Billion
Patients Growth People
»
»2007 YTD Results *
Revenues $3.2 billion Operating Income 14.9%EPS $1.32*Cash from Operations $280 millionCapEx $ 89 million
Performance impacted by efforts to retain UNH business.
Returning to Revenue and Earnings Growth in 2008
A Challenging Environment in 2007
*Excludes $0.04 EPS in Q1 charges.
Patients Growth People
»
»Reducing Costs by $500 Million
Streamline Lab Operations
Optimize Logistics Routes and PSC Resources
Improve Call Center and Billing Operations
Leverage Purchasing Capabilities
Maintaining High Service Levels
Using Lean Six Sigma to Improve Efficiency
Patients Growth People
»
»Building on Strength
Industry Leader in a Vital and Growing Industry
−Leadership in All Major Segments
Unique Value Proposition
A Proven Track Record of Integrating Acquisitions
Proven Management Team
Strong Cash Generator
A History of Disciplined Growth
Patients Growth People
»
»