Full Press Release Details
Driving Sustainable Growth, Delivering Long-term Value
Chairman, CEO, and President
J.P. Morgan Healthcare Conference
Safe harbor disclosure
The statements in this presentation that are not historical facts may be forward-looking statements. Readers and listeners 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 and which involve risks and uncertainties that could cause actual results and outcomes to be materially different. Risks and uncertainties that may affect the future results of the company include, but are not limited to, uncertain and volatile economic conditions, adverse results from pending or future government investigations, lawsuits or private actions, the competitive environment, the complexity of billing, reimbursement and revenue recognition for clinical laboratory testing, changes in government policies, including related to trade, and regulations, changing relationships with customers, payers, suppliers, or strategic partners, acquisitions, and other factors discussed in the company's most recently filed Annual Report on Form 10-K and in any of the company's subsequently filed Quarterly Reports on Form 10-Q and Current Reports on Form 8-K, including those discussed in the "Business," "Risk Factors," "Cautionary Factors that May Affect Future Results," and "Management's Discussion and Analysis of Financial Condition and Results of Operations" sections of those reports.
In the following presentation, references to adjusted EPS refer to adjusted diluted EPS. Any references to operating margin(s) refer to adjusted operating income as a percentage of net revenues. Any references to free cash flow refer to cash flow from operations less capital expenditures.
PURPOSE WHY WE EXIST
Working together to create a healthier world, one life at a time
STRATEGY HOW WE GROW
We are connecting consumers and clinicians to innovative, affordable, and actionable insights that illuminate every person's path to better health, at every stage of life.
Continuous improvement
Quest Diagnostics is at the center of healthcare
50% US hospitals and physicians served annually
1/3 US adults served annually
~217M requisitions in 2024
~8K patient access sites
>90% of insured lives in the US
>>80B patient data points
~1,600 patents/patents pending
Global including in Canada through LifeLabs
Our lab testing informs every stage of a person's health journey
What is my risk of getting a disease?
How is my overall health?
What is making me sick?
What direction wil my sickness take?
What therapy is best for me?
Is my therapy working?
Is my success sustainable?
Prevention and wellness testing
Chronic disease and sick-care testing
Growing healthcare trends continue to favor Quest
Demographic shifts- older, sicker population
Innovations in lab diagnostics
Greater adoption of AI and automation
Consumer focus on prevention and wellness
We are well positioned in the nearly $90 billion US lab market
Physician Channel $58B
Hospital Outreach 35%
Other independent Labs 42%
2024 Total US Lab Market $89B
Hospital Channel $31B
2024 Total Canadian Lab Market ~$5B
Hospital/Public Health 79%
Leading provider of clinical laboratory testing in Canada
Headquartered in Toronto
5 primary labs and 350 collection centers
Strong growth opportunities in Canada
Broadening access to lab services, including advanced diagnostics
Expanding into new provinces
Increasing consumer interest
Our strategy supports above-market growth in key channels
Capitalize on expanded health
Extend geographic reach
Serve as a partner of choice for large enterprise customers
Deliver scaled reference testing
Provide Collaborative Lab Solutions
Expand in new geographies through outreach acquisitions
Grow consumer-initiated testing
Support life sciences partners with testing and services
Deliver data analytics insights
Lead in advanced diagnostics through science and innovationDeliver a better customer experience and productivity improvements through technology
Long-term outlook beyond 2025: 4% - 5% revenue CAGR and 7% - 9% adjusted EPS CAGR
Our unique strengths enable us to capitalize on physician market trends
Physician employment trends
Summit Health City MD
Healthcare provider and executive needs
Scaled, efficient diagnostic testing to alleviate staff burden and gain external expertise
Reduced cost in testing capital and infrastructure--and minimized regulatory risks
Access to technology, automation, and broader menus of advanced testing
Optimized billing, reimbursement, and insurance in-network status for test coverage
Ability to focus on quality patient care with faster turnaround time and greater reliability
Our strengths enable us to meet each of these needs
Board access (PSCs, IOPs)
We help hospitals improve quality, efficiency, and access to capital
Comprehensive menu across continuum of care for one-stop shop
Reduces the need for hospitals to invest in advanced technologies
Approximately $1.2B in revenues today
Collaborative Lab Solutions (CoLab)
Professional lab management and related services based on expertise and scale
~$800M in revenues in 2025
~$1B in revenues in 2026 including Corewell Health
Access to capital to invest in core assets
Continued access to diagnostic innovation
Enhanced affordability
Quest is the lab engine for the growing wellness industry
~250M annual revenue
Biometric data from device
Biomarker data from lab
We expect advanced diagnostic tests in 5 key clinical areas to deliver double-digit growth
Advanced Cardiometabolic Health
Insulin resistance panel with score
Autoimmune Disorders
ANAlyzeR primary care screening
AD-Detect Alzheimer's disease blood testing
New liquid biomarkers
STEP500 liquid and tissue
Women's & Reproductive Health
QNatal Advanced (NIPS)
QHerit carrier screening
In these 5 areas, advanced diagnostic tests expected to generate ~$1 billion in 2025