Profile: Quest Diagnostics, Inc. (DGX)

Quest Diagnostics Incorporated, incorporated in 1990, is a provider of diagnostic testing, information and services. The Company offers United States patients and physicians the access to diagnostic testing services through its network of laboratories and Company-owned patient service centers. It is a provider of clinical testing, including gene-based and other esoteric testing, anatomic pathology services, including dermatopathology and testing for drugs-of-abuse, and provider of risk assessment services for the life insurance industry. The Company is also the provider of testing for clinical trials. Its diagnostics products business manufactures and markets diagnostic test kits and point-of-care testing.

During the year ended December 31, 2008, the Company’s clinical testing business accounted for greater than 90% of its net revenues, with the balance derived from insurer services, clinical trials testing, diagnostic products and healthcare information technology. Clinical testing includes routine testing, anatomic pathology, gene-based and esoteric testing, and drugs-of-abuse testing, which generated approximately 52%, 16%, 20% and 3% respectively, of the Company’s net revenues, during 2008. Risk assessment services for the life insurance industry, clinical trials testing, diagnostic products and healthcare information technology combined generated approximately 9%, during 2008. During 2008, it derived approximately 3% of its net revenues from foreign operations and held approximately 7% of its long-lived assets outside the United States.

Clinical Testing

The Company offers customers access to test menu of clinical and anatomic pathology tests in the United States. Clinical testing is categorized as clinical laboratory testing and anatomic pathology services. Clinical laboratory testing is performed on blood and body fluids, such as urine. Anatomic pathology services are performed on tissues, such as biopsies, and other samples, such as human cells. The Company provides routine clinical testing, including testing for drugs-of-abuse. It performs routine testing through its network of laboratories and rapid response laboratories. It also performs routine testing at the hospital laboratories it manages.

The Company is a provider of cancer diagnostics, including anatomic pathology services in the United States. Anatomic pathology involves the diagnosis of cancer and other diseases and medical conditions through examination of tissue and cell samples taken from patients. It provides anatomic pathology and other cancer diagnostics testing, including inpatient anatomic pathology and medical director services at hospitals, throughout the country, including through its laboratories. The Company provides a range of cancer diagnostic services to all specialties, including dermatopathology, gastroenterology, hematology, urology and oncology. The Company provides gene-based and other esoteric testing. It conducts complex and specialized testing, including molecular diagnostics, in its Nichols Institute laboratory facilities (one on each United States coast), and in a number of other locations. The Company’s esoteric laboratories provide reference testing services to physicians, academic medical centers, hospitals and other commercial laboratories.

Clinical Trials Testing

The Company is a provider of central laboratory testing performed in connection with clinical research trials on new drugs and vaccines. It has clinical trials testing centers in the United States, the United Kingdom and India, and provides clinical trials testing in Australia, China and Singapore through affiliated laboratories. During 2008, approximately 40% of its net revenues from clinical trials testing represented testing for GlaxoSmithKline plc (GSK). The Company is the primary provider of central laboratory testing to support GSK’s clinical trials testing requirements worldwide.

Life Insurer Services

The Company is a provider of risk assessment services to the life insurance industry in the United States and Canada. It also provides risk assessment services for insurance companies doing business in many countries outside the United States. During 2008, it began providing risk assessment services in India. Its risk assessment services comprise underwriting support services to the life insurance industry, including teleunderwriting, specimen collection and paramedical examinations, clinical testing, medical record retrieval, case management, motor vehicle reports, telephone inspections, prescription histories and credit checks.

Employer Services

The Company provides clinical testing to employers for drugs-of-abuse. Its Drug Testing Index, which is an annual report of the Company’s aggregate drug testing results, is used nationally by employers, the federal government and the media to help identify and quantify drug abuse among the nation’s workforce. The Company also provides wellness testing to employers to enable their employees to take a role in improving their health. Blueprint for Wellness program offers employers actionable data to power their health improvement and cost containment programs. Additionally, during 2008, the Company began to offer Blueprint for Wellness directly to individuals through its partnership with Google Health.

Diagnostic Products, Including Point-of-care, or Near Patient, Testing

The Company develops and manufactures products that enable healthcare professionals to make healthcare diagnoses, including products for point-of-care, or near patient, testing for the professional market. Focus Diagnostics is a provider of infectious disease testing, including diagnostic tests for Lyme disease, West Nile Virus and SARS. Focus Diagnostics develops, manufactures and markets diagnostic products, such as HerpeSelect ELISA tests that detect patient antibodies to specific types of Herpes Simplex Virus, which can be performed on a variety of instrument platforms. HemoCue is a provider in point-of-care testing for hemoglobin. Enterix manufactures the InSure fecal immunochemical test (FIT) for screening for colorectal cancer and has developed the InSure Quik FIT test for processing by the physician.

International

The Company has laboratory facilities in Mexico City, Mexico; San Juan, Puerto Rico; Gurgaon, India, and Heston, England. These laboratories support its clinical trials business and clinical testing in their local markets. In India, the Company’s laboratory also supports its risk assessment services and sales directly to employers and consumers.

Healthcare Information Technology

The Company develops and integrates clinical connectivity and data management solutions for healthcare organizations, physicians and clinicians primarily through its Care360 suite of products and the ChartMaxx electronic document management system for hospitals. The Care360 products, including its Care360 Physician Portal, enable physicians to order diagnostic tests and review test results from Quest Diagnostics online. In addition, the Care360 Physician Portal enables physicians to electronically prescribe medication, view clinical and administrative information in a patient-centric record maintained in the Company’s repository and share confidential information with medical colleagues. During 2008, the Company collaborated with Google to launch Google Health. Google Health enables patients and physicians to share diagnostic laboratory data online, and allows users to save, organize and manage their medical records and personal health information online. Using its Care360 connectivity products, physicians can securely provide diagnostic data with a brief explanation of test results to a patient’s Google Health account.