In response to the potential Influenza H1N1 pandemic, we quickly developed and deployed the first commercial H1N1 test and test kit based on our new Simplexa testing platform. In granting us emergency use authorization, the U.S. Food and Drug Administration noted that our test would expand the nation’s capacity to perform quality testing for the H1N1 virus. This is a great example of how we are able to respond quickly to a public health need and help patients while driving growth.
Continued progress in reducing our cost structure helped drive earnings growth. We exceeded the ambitious goal established in 2007 of removing more than $500 million from our cost structure by the end of 2009. We will not stop there. The capabilities we have developed in connection with these programs will continue to improve the quality of our services and the efficiency of our operations.
Favorable industry trends
The major trends continue to be favorable for long-term growth in diagnostic testing:
- The focus of healthcare is moving from treating sick patients to wellness, prevention and early detection of disease. Increasingly, employers recognize that keeping their work force healthy can drive enhanced productivity and lower healthcare spending.
- The population is growing and aging, requiring more testing. We are seeing an increase in the number of tests ordered for each patient.
- Technology is enabling testing to move closer to the point of care, whether in the physician’s office or at the patient’s bedside. We see the point of care testing business as a future growth opportunity.
- Increasingly, healthcare providers are adopting information technology solutions that enhance patient care and drive efficiencies in healthcare delivery. In addition, patients are beginning to use technology to manage their own health.
- The advent of personalized medicine and targeted diagnostic tests is increasingly helping doctors make more informed therapy decisions and monitor the effectiveness of treatment. The pace of innovation in this important area is accelerating, with the frequent discovery of new biomarkers, particularly for cancer, that are the basis for new targeted tests.
Accelerating innovation
We have been accelerating the pace of innovation by continuing to introduce new tests, healthcare IT solutions, and services.
We are driven to develop new tests that meet critical patient needs, with a focus on cancer, cardiovascular disease and infectious diseases. As we enter a new decade, it is looking more and more like the “decade of diagnostics,” driven by the advent of personalized medicine. Our scientific and medical team is uniquely positioned to help patients and their doctors improve health outcomes, often by enabling physicians to tailor treatment protocols based on the particular makeup of each patient. We had an impressive portfolio of accomplishments in 2009.