Both Quest Diagnostics (Madison, NJ) and LabCorp (Burlington, NC) are facing strong financial headwinds, such as aggressive cost-cutting moves necessary to offset the threat of further downward pricing of managed care contracts, according to a recent report by Goldman Sachs (New York). The report, which initiated coverage of both companies, gave LabCorp a neutral rating and Quest a sell rating. However, the report cited positive longer-term growth, due to demand-driven volume growth and overseas expansion, particularly for Quest, which is currently building a laboratory in New Delhi, India, to be opened in 2008.

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January 2008 - Table of Contents

LIR January 2008 (full PDF issue)

Competitive Demo Bids Due Feb. 15: CMS Confirms List of Excluded Cities

Quest, LabCorp, Sonic Land Humana Contract Extensions

‘First to File’ Patent Reform Efforts Underscore Labs’ Need to Protect IP

Goldman Sachs Identifies Current Challenges, Future Growth for Quest and LabCorp

Outlook for the Lab Industry: Five Execs’ Predictions for 2008

India’s Lal PathLabs Intent on Outsourcing United States Testing

Lab Stocks up 17% in ’07, Two New Companies Added for 2008

Caris Diagnostics to Acquire Molecular Profiling Institute