For the fourth quarter of 2009, the nation’s lab leader Quest Diagnostics (Madison, N.J.) reported revenues totaling $1.8 billion, an increase of 2.7 percent over the same quarter in 2008, according to an earnings call on Jan. 25, 2009. Quest met its revenue growth targets for the full year 2009; revenue grew 2.8 percent to approximately $7.5 billion. However, this growth is significantly down from 2008’s growth figures, when full year revenue grew 8.1 percent to approximately $7.2 billion. Revenue growth for 2010 is expected to be approximately 3 percent to 4 percent, which would bring this year’s revenues to between $7.7 billion and $7.8 billion. The company also announced a $750 million share repurchase plan.

Gene-based, esoteric, and anatomic pathology (AP) continue to be the key growth drivers for Quest. CEO Surya N. Mohapatra, Ph.D. reported on the earnings call that during the fourth quarter 2009, vitamin D testing grew more than 50 percent, allergy testing through the company’s ImmunoCap test grew more than 10 percent, and its leukemia and lymphoma test, Leumeta, grew more than 40 percent. It’s important to note, however, AP testing revenue was down 1 percent for all of 2009, which some analysts have attributed to more insourcing by community pathologists, as well as more competition from local and regional AP labs.

For more on this story, read the February issue of Laboratory Industry Report.