LabCorp 2008 Annual Report Download - page 10

8 Laboratory Corporation of America® Holdings 2008
This evolution began for LabCorp in the year
2000. This was the year when the fi rst data
from the human genome project was released
and we began to unlock the potential that
genomic testing could have for individualized
patient treatment. As we noted in our 2000
Annual Report,
“The evolving science of genomics is a
revolution creating the most profound
opportunities for improved medical care
in more than a century. The benefi ts of
earlier diagnoses, more effective medicines,
and better treatment programs that will
derive from the mapping of the human
genome are nearly beyond measure.
LabCorp stands to be an early benefi ciary
of this new era.”
As you have read on the preceding pages,
these benefi ts are here today, and the patients
that LabCorp serves are benefi ting in real and
measurable ways. We believe that personalized
medicine will grow dramatically in the coming
years and have a profound impact on how
individual patients are diagnosed and treated.
The clinical laboratory is already critical to the
health care system; the growth of personalized
medicine will make us, more than ever, the
central player in the delivery of the right care
to the right patient at the right time. LabCorp
intends to continue to lead the laboratory
industry in the movement toward personalized
medicine and expects this leading position to
be a key driver of growth for the Company
going forward.
We are in an excellent position to realize
this goal. Our scientifi c leadership in the
laboratory testing industry is well established.
We also enjoy a strong reputation as the
lab partner of choice for top researchers in
pharmacology and biotechnology. Building
on these strengths, we will pursue our goals
in personalized medicine through the
execution of three strategies: continued
growth in esoteric testing, expansion of
outcome improvement programs, and
development and commercialization of
companion diagnostics.
Esoteric Testing Growth
For more than a decade, LabCorp has been
steadily increasing its esoteric test menu; today
these high-value assays represent 35 percent
of our U.S. revenue. Our goal is to increase this
mix to 40 percent of revenue within the next
three to fi ve years. This growth will result from
increased use of esoteric testing as physicians
and other providers better understand its
benefi ts, as well as the continued introduction
of new esoteric tests as scientifi c advances
are made and as we address areas of unmet
medical need.
In 2008, for example, we brought to market
new assays that assist in the diagnosis and
treatment of hepatitis B; genetic analysis for
developmental delays, including autism; and
cancers of the central nervous system, prostate
and colon. Collaborative partnerships with
academic institutions, such as Duke University
and Yale University, and other researchers
will ensure that LabCorp remains at the
forefront of commercializing innovative new
esoteric tests.
Financial highlights
Year Ended December 31,
(In millions, except per share amounts) 2008 2007 2006
Net sales $ 4,505.2 $ 4,068.2 $ 3,590.8
Gross profit 1,873.8 1,691.2 1,529.4
Operating income 842.9 777.0 697.1
Net earnings $ 464.5 $ 476.8 $ 431.6
Basic earnings per common share $ 4.23 $ 4.08 $ 3.48
Diluted earnings per common share $ 4.16 $ 3.93 $ 3.24