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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Paul Senior who wrote (39033)	8/31/2010 11:28:29 PM
From: Jurgis Bekepuris	Read Replies (2) \| Respond to of 78673

Paul, Part of the DGX business that does research pharma tests is pretty small, so I am not sure there is a big issue of "lose some business from SNY competitors". The real question about DGX future is what will the hospitals do. Hospital labs are still the majority of the diagnostic test providers. Even biggest independents like DGX and LH have much smaller part of the market. Furthermore hospital labs try to attract tests from all independent doctors and smaller clinics in the hospital area. Unless more hospitals decide to outsource tests to DGX and LH, DGX will always be behind in testing. Who would go to some DGX lab if they can just go to the lab in the same place where they visited their doctor? The convenience of the hospital lab is pretty much unbreakable. It's like real estate mantra "location, location, location". :/ It's surprising DGX and LH got to the place where they are - perhaps some hospitals don't consider their labs to be important part of their business. ;)