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Quest Diagnostics Buys SmithKline Clinical Labs

Executive Summary

Quest Diagnostics' agreement in February to buy SmithKline Beecham Clinical Labs for $1.3 billion in cash and stock brings together two of the three largest clinical labs in the country and makes Quest the largest reference laboratory in the country. Quest hopes to expand its national presence, better manage costs, capitalize on both companies' information expertise and bring a measure of pricing stability to a besieged industry. SmithKline wants to concentrate on its drug R&D.

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