Quest Diagnostics Inc. Q3 2008 Earnings Conference Call Transcript

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2008-10-21 12:01:16.0

Tags: Revenue, Quest Diagnostics Inc., William Blair & Co., Patient, Call Transcript, William Blair Co., Earnings, Operational Accounting, Finance, Seeking Alpha, Revenue, Quest Diagnostics Inc., William Blair & Co., Patient, Call Transcript, William Blair Co., Earnings, Operational Accounting, Finance, Seeking Alpha

Question-and-Answer Session

Thank you.[Operator Instructions]. Our first question comesfrom Amanda Murphy. Your line is open,and please state your company.

Amanda Murphy - William Blair & Company

Hi, good morning. Its AmandaMurphy from William Blair. Just a coupleof questions. You mentioned that volumeor say, revenue growth on the esotericside is running at the 10% levels.Can you break that down in anywaybetween pricing and volume growth, andsort of how that stranded through theyear?

Laure Park - Vice President, Communications and Investor Relations

Amanda, wereally are focused on revenue growth.And, the revenue growth is up about10%. We're seeing strong growth as weindicated in Vitamin D testing, whichis driven off increased demand acrossthe industry, as you hear for thattest, as well as improved demand alsoon HPV, chlamydia and gonorrhea.

Robert A. Hagemann - Senior Vice President and Chief Financial Officer

Amanda, you should expect thatthe majority of that growth in theesoteric testing is more volume driven,given the fact it has been a newertesting.

Amanda Murphy - William Blair & Company

Okay,thanks. That's helpful. And then, on thepoint-of-care side, can you just talkabout what perhaps has surprised you both,on the positive side and on thenegative side, as you bring those teststo market? And also, have you beenable to apply any big clearances fromNIB, I know, as you commercialize point-of-caretesting?

Surya N. Mohapatra - Chairman, President and Chief Executive Officer

Well,let me comment on you about thepoint-of-care. Remember only 18 month agowe acquired HemoCue, which is a verywell-established point-of-care near present testingcompany. And when you look at thepoint-of-care platform of near present testingwe have Enterix, HemoCue and Focus diagnostics.What we are doing actually is takingtesting to the patient's bed side andas we increase our coverage and useour distribution channel, we find thatsome of the main customer like AmericanRed Cross, they are accelerating the adoptionof some of the platform. So weare pleased with the adoption of ourproducts. The only work we have todo is to continue convincing the doctorsand the FDA and the regulators thatthere is more to gain using point-of-carein the clear way of laboratory inthe doctor's office.

Amanda Murphy - William Blair & Company

Haveyou seen any increase in a regulatoryscrutiny in terms of tax you're offeringto Google for example.

Surya N. Mohapatra - Chairman, President and Chief Executive Officer

No,we have not seen any regulatory scrutinynor do we expect any scrutiny becauseremember the patient is seeking Googleto put their health records and thedoctors have to agree to that andthe patient has to give us a consent.

 

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