Important Comments from the Chairman of DGX:
Surya Mohapatra - Chairman, Chief Executive Officer, President and Chairman of Executive Committee
Surya Mohapatra
Well, we have been anticipating changes in healthcare reform, and how our company is going to grow both top line and bottom line in the coming years. So over the last four or five years, we've stated our strategies that we're going to invest money in esoteric, gene-based testing and anatomic pathology, and that's what we have done over the last three or four years. And then last year or 18 months ago, we stated also that we're going to build up specialty sales force because we think our future is in science and innovation. Our future is beginning in proprietary products to solve the unmet needs of the four disease area, which is the growth areas: cancer, infectious disease and cardiovascular disease and neurological disorders. So what you are really seeing is, to some extent, how we are transforming our company just from a lab company to a diagnostics company, now we're getting into the science and innovation. And we believe for our shareholders and for our patients, this is the best strategy, and we are just executing our strategy, what we said three or four years ago.
Surya Mohapatra
Well, first of all, as we said, that any acquisition for us has to fit in strategically and has to make economic sense. And now you folks can realize why we waited to do the things that was really in line with our strategy to get into new platforms. Athena was a new platform for neurological disorders. Celera is a new platform for cardiovascular disease, but more importantly in discovery and development. And we will continue to invest money in these type of acquisitions as we go forward. Now, as regards to other fold-in acquisitions, that is a routine task for us and if it is available at appropriate value, we'll always look into fold-in acquisitions for lab. But our focus remains to build up Quest Diagnostics as the most innovative company by investing in science and innovation.
Surya Mohapatra
Well, first of all, the M&A strategy, in the stated strategy. We told three or four years ago that we're going to diversify more and more towards esoteric and gene-based and anatomic pathology, and that's what we have been doing. And as you know, 36% of our total revenue now is in this high-margin and high-growth areas. Now, of course, there are some market dynamics with the changes, like in anatomic pathology, we are going through a tough time in physician insourcing. Of course, we are working with a trade association for legislative changes in that. So the way we look at it is, to some extent, Quest Diagnostics is going towards creating a new Quest Diagnostics where we are really looking at the four disease areas. And these platforms are the reason why we could say we can serve the cancer patients effectively, cardiac patients effectively , neurological patients effectively, and infectious disease. Now that gives us the competitive advantage compared to other companies in the United States and our competitors. So although it is not reflected in this year and we don't give long-term guidance, but we are very, very excited about the long-term future of the company and our role as the industry leader, what we can do for our patients and what we can do for our shareholders
