CYTYC AND QUEST DIAGNOSTICS
ANNOUNCE MULTI-YEAR AGREEMENT
BOXBOROUGH, MA, AND TETERBORO, NJ, JANUARY 6, 2000 Cytyc Corporation (Nasdaq: CYTC) and Quest Diagnostics Incorporated
(NYSE: DGX) today announced a multi-year agreement to market the ThinPrep® Pap Test
as Quest Diagnostics exclusive liquid-based cervical cancer screening methodology.
Quest Diagnostics, the nations leading provider of anatomic pathology testing
services, introduced the ThinPrep Pap Test as a new cervical screening technology in 1997.
Under this agreement, the two companies will combine their
marketing resources and expertise to promote the benefits of ThinPrep technology
nationwide. The plan calls for the development of a program of cooperative sales activity
directed toward payers, physicians and patients. As consideration for the exclusive nature
of this relationship, Cytyc has granted Quest Diagnostics a warrant to purchase 150,000
shares of common stock. The companies did not disclose additional terms of the agreement.
"We are very excited about the potential of this program,
which is consistent with Quest Diagnostics strategy to provide high quality products
and services to our patients and customers," said Surya N. Mohapatra, Ph.D.,
"As an early
adopter of ThinPrep technology, Quest Diagnostics has had the opportunity to confirm the
clinical advantages of the ThinPrep Pap Test."
With the acquisition
"Quest Diagnostics has become the leading provider of Pap testing in the United
States as a result of their commitment to excellence and their dedication to deliver high
quality, reliable laboratory service," said Patrick J. Sullivan, Cytycs
president and chief executive officer. "We are excited to have them as our partner to
increase awareness of the benefits of the ThinPrep Pap Test and accelerate conversion to
this significantly more effective technology."
Cytyc Corporation develops, manufactures, and markets the
ThinPrep® System for medical diagnostic applications. The ThinPrep System consists of the
ThinPrep® 2000 Processor and related reagents, filters, and other supplies. Since
introduction, Cytyc has manufactured more than 1,000 ThinPrep 2000 Processors and 10
million ThinPrep® Pap Tests for cervical cancer screening.
Cytyc® and ThinPrep® are registered trademarks and ThinPrep® Pap Test is a
trademark of Cytyc Corporation.
Quest Diagnostics is the nation's leading provider of diagnostic testing, information
and services to physicians, hospitals, managed care organizations, employers and
government agencies with annualized revenues of more than $3 billion. The wide variety of
tests performed on human tissue and fluids help doctors and hospitals diagnose, treat and
monitor disease. Its Nichols Institute unit conducts research, specializes in esoteric
testing using genetic screening and other advanced technologies, and manufactures and
distributes diagnostic test kits and instruments. Quest Diagnostics is one of the leading
providers of testing to support clinical trials of new pharmaceuticals worldwide. Quest
Informatics collects and analyzes laboratory, pharmaceutical and other data to help large
health care customers better manage the health of their patients. QuestNet is an
innovative new product offering that provides network management services to large buyers
of health care services. Additional company information can be found on the Internet at:
www.questdiagnostics.com.
Forward-looking statements in this press release are made pursuant to the
provisions of Section 21E of the Securities Exchange Act of 1934. Investors are cautioned
that statements in this press release which are not strictly historical statements,
including, without limitation, statements regarding management's plans and objectives for
future operations, product plans and performance, potential savings to the healthcare
system, management's assessment of market factors, as well as statements regarding the
strategy and plans of the Company, constitute forward-looking statements which involve
risks and uncertainties, including, without limitation, risks associated with the
Company's dependence on a single product, uncertainty of market acceptance and additional
cost, dependence on timely and adequate levels of third-party reimbursement, CPT code
implementation delays and delays in reimbursement, risks associated with potential year
2000 software disruptions involving the products and systems of the Company and certain
third party customers, suppliers, and payers, limited marketing and sales experience, and
limited number of customers and lengthy sales cycle, as well as risks of downturns in
economic conditions generally, and in the healthcare industry specifically, risks
associated with competition and competitive pricing pressures, potential liabilities and
costs associated with litigation, and other risks detailed in the Company's filings with
the Securities and Exchange Commission, including in its 1998 Form 10-K filed with the
Commission.
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