Quest Diagnostics Inc. (NYSE:DGX) Q4 2014 Earnings Conference Call - Final Transcript
Jan 29, 2015 • 08:30 am ET
Thank you. We will now open it up for questions. [Operator Instructions]. Our first question or comment comes from David Clair from Piper Jaffray. Your line is open.
Hi. Good afternoon, guys. Thanks for taking my question.
Good morning, David.
Good morning, Dave.
So first question from me, you mentioned looking at non-core assets during your commentary. Can you give us any details on areas that you would potentially be interested in?
Sure. Well, in 2012, we laid out those businesses that were core and those things we would consider our options for. One of those categories were our drug assets. We actually monetized one of those as you will recall with ibrutinib. We still have one remaining. That is something we would consider. And then also we talked about our products business, Celera products is a product line if you will that we talked about. So those are 2 that we would consider our options for.
If the FDA LDT regulations go through, do you have any estimates in terms of what it might cost you guys and is any of that built into estimates for 2015?
No, first of all, we don't believe it should go through. We believe it is not good regulation. We already have regulation with CLIA. If we need to do a better job with quality and regulatory approvals, then we should improve CLIA. In that regard, the FDA has heard some of the feedback through their panels, is reviewing what we have been talking about. So we will see where this evolves but we have no estimate of what it would cost.
us at this point if in fact it were to go through.
Thanks. Congratulations on a nice quarter.
Our next question or comment is from Lisa Gill from JPMorgan. Your line is open.
Hi. This is actually (inaudible) in for Lisa.
Hi, there. Good morning.
Good morning, Gavin [ph].
Good morning. I just wanted to get some more color on your expectations for market growth. I think you said at Investor Day that you thought the market would be growing 2% to 3% and that you would be growing faster than the market because you are targeting prior growth areas. Can you just walk me through what you are expecting for market growth in 2015?
What we said is that we believe the market - when we do our models - this is mid- to long-term market growth - would grow 2% to 3% and this is for the independent commercial lab market so it excludes commercial outreach businesses from hospitals. In that number we have anticipated growth in population, we have anticipated growth in insured lives, gradual build in lives that have insurance from the Affordable Care Act. We have also considered the advancements of what we do is also going to provide some growth in the marketplace. So that is what we believe the growth to be.
We also shared in the fall that we said back to years ago