LYNDHURST, N.J., and HERNDON, Va., May 19 /PRNewswire-FirstCall/ -- Quest
Diagnostics Incorporated (NYSE: DGX), the nation's leading provider of
diagnostic testing, information and services, has agreed to acquire Focus
Diagnostics, Inc., the premier infectious disease testing provider, in a cash
transaction valued at approximately $185 million. Focus Diagnostics is
privately held and based in Herndon, Virginia. The acquisition will add annual
revenues of approximately $65 million.
Focus Diagnostics is a portfolio company of private equity firms DLJ
Merchant Banking and The Sprout Group. Excluded from the transaction is Focus
Bio-Inova, Focus Diagnostics' pharmaceutical testing operation. The
transaction, which is expected to be completed during the third quarter of
2006, is subject to regulatory review and other customary closing conditions.
Additional terms of the transaction were not disclosed.
"Focus Diagnostics has been recognized worldwide for its leadership in
infectious and immunologic diseases and its expertise in developing new
diagnostics," said Surya N. Mohapatra, Ph.D., Chairman and CEO of Quest
Diagnostics. "Focus Diagnostics will further expand our capabilities and
strengthen our position as the leading provider and developer of esoteric
tests to hospitals and physicians."
The acquisition is not expected to have a material impact on Quest
Diagnostics' 2006 earnings per share, excluding anticipated charges associated
with the transaction.
Focus Diagnostics offers its reference testing services to large academic
medical centers, hospitals and commercial laboratories. The company has also
established a reputation for being first to introduce new assays to the
market, including diagnostic tests for Lyme disease, West Nile Virus and SARS.
In addition, Focus develops and markets diagnostic products, such as
HerpeSelect(R) for Herpes Simplex Virus.
About Focus Diagnostics, Inc.
Founded in 1978 as Microbiology Reference Laboratory, Focus Diagnostics
has served the healthcare community for nearly three decades as an innovative
developer and provider of products and testing services for complex
diagnostics, including infectious disease, autoimmune and newly introduced
genetic testing. Focus Diagnostics' USFDA-registered and ISO 9001-certified
diagnostics manufacturing facility and ISO 9001-certified reference laboratory
are located in Cypress, California. Corporate headquarters are in Herndon,
Virginia. More information is available at http://www.focusdx.com.
About Quest Diagnostics
Quest Diagnostics is the leading provider of diagnostic testing,
information and services that patients and doctors need to make better
healthcare decisions. The company offers the broadest access to diagnostic
testing services through its national network of laboratories and patient
service centers, and provides interpretive consultation through its extensive
medical and scientific staff. Quest Diagnostics is a pioneer in developing
innovative new diagnostic tests and advanced healthcare information technology
solutions that help improve patient care. Additional company information is
available at: http://www.questdiagnostics.com.
The statements in this press release which are not historical facts or
information may be forward-looking statements. These forward-looking
statements involve risks and uncertainties that could cause actual results and
outcomes to be materially different. Certain of these risks and uncertainties
may include, but are not limited to, competitive environment, changes in
government regulations, changing relationships with customers, payers,
suppliers and strategic partners and other factors described in the Quest
Diagnostics Incorporated 2005 Form 10-K and subsequent SEC filings.
SOURCE Quest Diagnostics Incorporated; Focus Diagnostics, Inc.
CONTACT:
Investors: Laure Park, +1-201-393-5030, or
Media: Gary Samuels,
+1-201-393-5700,
both of Quest Diagnostics Incorporated