Quest Diagnostics Incorporated · NYSE:DGX
Quest Diagnostics — 32nd Annual J.P. Morgan Healthcare Conference (January 2014)
17 slides from Quest Diagnostics's conference presentation, Jan 15, 2014
Slide 1: Quest Diagnostics 32nd Annual J.P. Morgan Healthcare Conference
Quest Diagnostics 32nd ANNUAL J.P. MORGAN HEALTHCARE CONFERENCE JANUARY 15, 2014
Slide 2: Safe Harbor Disclosure
Safe Harbor Disclosure This presentation may contain forward‐looking statements. Readers are cautioned not to place undue reliance on forward‐looking statements, which speak only as of the date that they are made and which reflect management's current estimates, projections, expectations or beliefs
Slide 3: U.S. Diagnostic Testing Represents a Small Cost but Drives a Disproportionate Impact on Healthcare
U.S. Diagnostic Testing Represents a Small Cost but Drives a Disproportionate Impact on Healthcare Estimated 2012 Health Consumption Expenditures Increasing Role of Diagnostics $2.4T • Diagnostic testing has an Hospital (36%) increasingly important seat at the table in delivering Professional Servic
Slide 4: We Operate in a Highly Fragmented Market
We Operate in a Highly Fragmented Market Total U.S. Lab Market “Outside the Hospital” Independent Lab Segment Lab Segment 61% Other 55% DGX POL 6% Tier 2 Niche 6% Labs Labs Hospital‐ 9% 10% 8% Outpatient 11% Hospital LH Outreach 19% Small Outside the 33% Independent Hospital‐ Independent Hospital La
Slide 5: Forces at Work in the Industry
Forces at Work in the Industry Utilization Reimbursement Stakeholder Technology Dynamics Evolution • Favorable • Government and • Physician acquisition • Advances in demographics for commercial by hospitals genomics and organic growth pricing pressure proteomics – Population • ACO formation / • Shif
Slide 6: Trends Contributing to Industry Growth Opportunities
Trends Contributing to Industry Growth Opportunities Esoteric Growth through Disease Focus Hospital Dynamics Related to Lab Services Hospital acquisition of Payors pressure physician practices hospital reimbursement Hospital Hospitals and ACOs Hospitals view turn to partners to labs as cost centers
Slide 7: One Vision, Three Goals, Five-Point Strategy
One Vision, Three Goals, Five‐Point Strategy 7|
Slide 8: We are Making Excellent Progress on Our New Five-Point Strategy Launched a Year Ago
We are Making Excellent Progress on Our New Five‐Point Strategy Launched a Year Ago Restore: Restore Growth Drive: Drive Operational Excellence Simplify: Simplify the Organization Refocus: Refocus on Diagnostic Information Services Deliver: Deliver Disciplined Capital Deployment 8|
Slide 9: Restore Growth
9] Extend in Adjacent Markets Lead in Companion Diagnostics Create Value from 5 Information Assets Sales and Marketing Excellence Grow Esoteric idalgoler-daMolelg 2 Disease Focus Zz S i>] Partner 4 with a Hospitals and IDNs Ss 7 8 Cc GD Succeed } Internationally ~@ Quest @ Diagnostics
Slide 10: New Clinical Franchises Focused on Disease States and Solutions
New Clinical Franchises Focused on Disease States and Solutions BRCAdvantage Solution Advanced Technology Dementia Panel Clinical Franchises Science & Innovation Health Trends HCV Partnership 10 | Restore: Restore Growth
Slide 11: Continued Price and Utilization Pressure will Drive Demand for our Expertise in a Range of Strategic Partnerships
Continued Price and Utilization Pressure will Drive Demand for our Expertise in a Range of Strategic Partnerships ACOs Level of Strategic Joint Venture Partnership Outreach Build on experience Acquisition with Banner Health & UPMC Lab Management 2013: UMass & Dignity & Outsourcing outreach acquisiti
Slide 12: Drive Operational Excellence
Drive Operational Excellence • Create a superior customer experience using four Strategic Imperatives – End‐to‐End Customer Value Chain – Enterprise IT Architecture – Business Performance Tools – Cost Excellence – Invigorate • Invigorate goal – Deliver $500M in savings in 2014 compared to 2011 basel
Slide 13: Simplify the Organization
Simplify the Organization Diagnostic Information Services BEFORE NEW Value Value Business 1 Business 2 Business 3 Business 4 Business 5 Creation Delivery General Management Science & Sales & Innovation Marketing Strategic Operations Marketing Support Functions 13 |
Slide 14: Refocus on Diagnostic Information Services
Refocus on Diagnostic Information Services We Have Made Progress on Our Portfolio Review and Generated ~$800 million in Proceeds Executed on the following divestitures • Products businesses – Recently completed sale of HemoCue, Enterix and OralDNA businesses • Celera drug assets – Sold Ibrutinib roy
Slide 15: Deliver Disciplined Capital Deployment
Deliver Disciplined Capital Deployment • Restore growth – Sales and marketing excellence – Esoteric testing with disease state focus – Strategic hospital / integrated delivery network partnerships • Drive operational excellence – Expand margins through Invigorate – Realize significant operating leve
Slide 16: One Vision, Three Goals, Five-Point Strategy
One Vision, Three Goals, Five‐Point Strategy 16 |
Slide 17: Quest Diagnostics
Quest sy | GS Diagnostics
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