TRENDS & PERSPECTIVES
Quest Diagnostics Inc. (Lyndhurst, NJ), a Fortune 500 diagnostic testing company, has gained entry into the IVD market with the acquisition of HemoCue Corp. (Angelholm, Sweden), an IVD manufacturer specializing in point-of-care (POC) testing. This $420 million cash acquisition represents Quest’s first foray into the near-patient IVD sector and quickly follows the close of Quest’s 2006 acquisitions of Focus Diagnostics Inc. (Cypress, CA) and Enterix Inc. (Falmouth, ME).
“Technology is enabling diagnostic testing to move closer to the patient. The acquisition of HemoCue gives us a presence in the emerging market,” said Jennifer L. Somers, spokesperson for Quest. “HemoCue is the leading global provider in near-patient hemoglobin testing and it has a growing share in near-patient markets for professional glucose and microalbumin testing. Additionally, Quest can leverage the HemoCue sales and distribution network for distribution of products from the recent acquisitions of Focus and Enterix.”
Quest views its emergence upon the IVD scene as a natural extension of its principal business. “This acquisition enables us to provide complementary diagnostic testing to meet the needs of doctors,” Somers said. “Near-patient testing is something that we see as continuing to coexist with centralized laboratory testing, which is Quest’s primary business. POC testing and clinical laboratory testing are certainly not mutually exclusive; they represent a continuum in diagnostic testing.”
This acquisition adds a new element to Quest’s business, but does not indicate a major shift in product focus. Centralized laboratory testing will continue as Quest’s main focus, and products in the pipeline are geared toward the clinical laboratory.
“Clinical lab testing serves the vast majority of patients’ and doctors’ diagnostic testing needs today. When we look at growth in the diagnostic testing business we think it is going to be driven by the introduction of new tests that are best suited for the clinical laboratory environment,” Somers remarked. “We look at POC testing as one way to drive growth for our business. This acquisition makes sense for our customers and for our company. Clinical laboratory testing is our primary business and looking ahead at the tests coming down the pipe, these tests are best suited for the clinical laboratory environment.”
Reports for 2006 placed the POC testing market at an estimated $6 billion. POC testing represents about 13% of the IVD market and is one of the fastest-growing market segments, with average annual growth at approximately 13%.
