Premier and Quest Bet on the Ultimate Deal
Executive Summary
Quest's alliance with Premier gives it unprecedented access to hospital laboratory business, which it and other reference laboratories have long coveted but had trouble capturing. As part of the deal, Quest and Premier are exploring ways to combine their laboratory purchasing power, with implications for suppliers.
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A Temporary Blip or A Long-Term Slowdown for Lab Giants?
Quest and Laboratory Corp. of America, two Wall Street favorites for several years, seem to be bumping up against a wall when it comes to growth. Their growth is heavily dependent on acquisitions--but there aren't many big labs left to buy. Lab Corp.'s just announced offer for Dianon not withstanding. Quest's bid to buy California-based Unilab, is under FTC scrutiny--although Wall Street is betting the deal will fly. Lab Corp. faces intense regional competition, which it claims it is addressing. Still, the bigger these companies get, the tougher it is to maintain growth.
A Temporary Blip or A Long-Term Slowdown for Lab Giants?
Quest and Laboratory Corp. of America, two Wall Street favorites for several years, seem to be bumping up against a wall when it comes to growth. Their growth is heavily dependent on acquisitions--but there aren't many big labs left to buy. Lab Corp.'s just announced offer for Dianon not withstanding. Quest's bid to buy California-based Unilab, is under FTC scrutiny--although Wall Street is betting the deal will fly. Lab Corp. faces intense regional competition, which it claims it is addressing. Still, the bigger these companies get, the tougher it is to maintain growth.
Clinical Laboratories' Amazing Comeback
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