LYNDHURST, N.J., Feb. 1 /PRNewswire-FirstCall/ -- Quest Diagnostics
Incorporated (NYSE: DGX), the leading U.S. provider of diagnostic testing,
information and services, announced today that it has acquired HemoCue, a
Swedish company specializing in near patient testing, also known as point-of-
care testing, from the private equity firm EQT II B.V. in a cash transaction
valued at approximately $420 million. The acquisition will allow Quest
Diagnostics to enter the growing near patient testing market and leverage
HemoCue's international presence to reach new markets around the world. The
transaction, which has been financed through a new credit facility, is not
expected to have a material impact on Quest Diagnostics' 2007 financial
results. Additional terms of the transaction were not disclosed.
HemoCue has annualized revenues of approximately $90 million and is the
leading international provider in near patient testing for hemoglobin, with a
growing share in professional glucose and microalbumin testing. The company's
handheld systems are used in physicians' offices, blood banks, hospitals,
diabetes clinics, and public health clinics. In developing countries these
systems are used as the primary means to screen for anemia. The measurement of
hemoglobin is important for patients being treated by transfusion, or
undergoing dialysis or chemotherapy, where instant test results can lead to
immediate treatment decisions.
HemoCue has a strong product pipeline, based on the pioneering use of its
patented microfluidic systems, and is currently developing new tests including
a near patient test to determine white blood cell counts. This test will help
physicians quickly determine the presence of an infection and, consequently,
the need for antibiotic treatment, potentially reducing the overuse of
antibiotics, an ongoing public health concern. This acquisition also
complements efforts underway at Quest Diagnostics in near patient testing for
infectious disease and cancer, including new tests for colorectal cancer
screening and herpes simplex virus type 2.
In addition, Quest Diagnostics intends to enhance the electronic
connectivity of HemoCue's handheld systems by making them compatible with its
Care360 portal, which enables doctors to store, access and share patient
information. The Care360 portal provides physicians with 24/7 access to lab
and medication records, patient medical history and remote ordering of lab
testing or e-prescribing.
"Technology is enabling diagnostic testing to move closer to the patient,
and the acquisition of HemoCue and its exciting product pipeline gives us a
strong presence in this emerging market," said Surya N. Mohapatra, Ph.D.,
Chairman and Chief Executive Officer of Quest Diagnostics. "Linking near
patient testing devices to our proprietary Care360 patient-centric physician
portal can provide longitudinal test reporting on a patient regardless of how
or where a test was performed. This will help doctors improve the way they
diagnose, monitor and treat disease."
"We look forward to bringing together two organizations that share a
passion for patient care, quality, service and innovation," said HemoCue
Managing Director and Chief Executive Officer, Josef Selinger, who will
continue to operate HemoCue as part of Quest Diagnostics.
About EQT II B.V.
EQT II B.V. is a group of private equity funds that manages approximately
euro 10.5 billion in equity in 10 funds. EQT II B.V., acting as investment
advisor to all EQT II B.V. funds, has offices in Stockholm, Copenhagen,
Helsinki, Frankfurt, Munich and Hong Kong. EQT realises its business concept
by acquiring and developing high-quality medium sized companies in Northern
Europe and Greater China. EQT II B.V. serves as an active owner and works in
close co-operation with the management of the companies it acquires, to
develop and implement value-enhancing strategies. In total EQT II B.V. has
invested in about 50 companies.
About HemoCue
HemoCue, headquartered in Angelholm, Sweden, is a leading global company
in a field of diagnostics known as near patient, or point of care, testing. In
1982, the company introduced the first system making accurate hemoglobin
testing possible in near patient settings. The system consists of a handheld
instrument and a disposable microcuvette (micro sample collection system) used
with each test. Since then, HemoCue has sold more than 250,000 systems
worldwide and sells more than 100 million cuvettes annually. The company has
wholly owned subsidiaries in England, Finland, Germany, the Netherlands,
Switzerland and the U.S., with franchises and third-party distributors
generating revenue in more than 100 countries. HemoCue has approximately 340
employees worldwide. Additional information is available at
http://www.hemocue.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.
SOURCE
Quest Diagnostics Incorporated
CONTACT:
Laure Park (Investors): +1-201-393-5030, or Jennifer Somers
(Media): +1-201-393-5700, both of Quest Diagnostics