LabCorp 2008 Annual Report Download - page 12

10 Laboratory Corporation of America® Holdings 2008
Companion Diagnostics Development
LabCorp’s leadership in esoteric testing goes
hand-in-hand with developing and commer-
cializing companion diagnostics, which provide
guidance for tailoring drugs to the exact needs
of an individual patient. Our acquisition of
Tandem Labs in 2008 has advanced this
objective signifi cantly. Tandem helps pharma-
ceutical and biotechnology companies with
their discovery, preclinical and clinical drug
development programs. The effective com-
bination of Tandem’s capabilities with our
clinical trials division is evident in the double-
digit year-over-year growth that we achieved
in companion diagnostic testing during 2008.
Leveraging The Lab Asset
Collectively, our initiatives across the spectrum
of personalized medicine are designed to fuel
a new era of growth for LabCorp and its
shareholders. The success of these initiatives
will be driven by market need and by our strong
business model. LabCorp touches millions of
patients, tens of thousands of doctors and
other providers, and thousands of hospitals
throughout the United States. We have one
of the largest distribution networks in the
country, exceptionally strong managed care
relationships, and numerous partnerships
with leading academic medical centers and
health care companies.
Quality and cost effi ciency are certainly
key components of our successful managed
care relationships; convenience is another
factor. We remain vigilant with respect to
customer care and are constantly implementing
ways to make it easier to do business with
LabCorp. In early 2008, we introduced online
appointment scheduling and self-check-in
kiosks at select locations and plan to expand
both of these patient convenience tools
throughout 2009.
These customer care initiatives are part
of an ongoing effort to support growth by
enhancing our capabilities to handle larger
testing volumes with greater speed and
accuracy. Automation investments, logistics
optimization and supply chain management
are expected to increase the productivity of
our operations, which already are the most
effi cient in the industry.
Solid 2008 Performance
The strength of our model was demonstrated
during 2008 when, despite economic
headwinds, LabCorp turned in a solid perfor-
mance. Net sales increased 10.7 percent
to $4.5 billion.
In a year when corporate liquidity and
credit availability dominated headlines,
we maintained our sound business model
and solid balance sheet. LabCorp continues
to enjoy industry-leading cash fl ow and
produced $780.9 million in operating cash
fl ow in 2008, an increase of 10 percent
over 2007.