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      Headlines - August 22, 2005
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R. Lewis Dark: PCR Celebrates Its Twentieth Anniversary in 2005

IT'S BEEN A BUSY YEAR AND I HOPE NO ONE THINKS we've been remiss by not mentioning a milestone anniversary until now. On the other hand, I personally can't recall reading about this anniversary elsewhere in the lab industry press during 2005. So maybe I am among the few to call attention to the fact that, on March 28, 2005, a number of foundational PCR (polymerase chain reaction) patents expired in the United States. These patents have been held by Roche, which was bold in its original decision to acquire these patents.

PCR was developed in 1985 by biochemist and surfer Kary Mullis, Ph.D. while he worked for Cetus Corporation of Emeryville, California. Cetus paid Mullis a $10,000 bonus for this invention. It was in 1998 that Cetus, in collaboration with Perkin-Elmer Corporation, introduced the"DNA Thermal Cycler" to automate the PCR process.

By early 1989, Cetus had agreed to collaborate with Hoffman- LaRoche to develop and commercialize IVD diagnostic products that incorporated PCR technology. In 1991, Hoffman-LaRoche paid $300 million to Cetus and acquired the rights to PCR. Mullis was honored by a Nobel Prize in Chemistry (for PCR) in 1993, just eight years after publication of his work.

Today, with full hindsight, that bold decision to pay $300 million to license PCR technology is widely viewed as a savvy business decision. Roche has enjoyed substantial revenue from licensing fees and royalties paid by companies and laboratories using this technology. Over 100 companies and 600 laboratories worldwide have such arrangements with Roche.

Moreover, the expiration of the first PCR patents on March 28, 2005 may be characterized as"The King is Dead! Long Live the King!" That's because Roche states that"continuing patents and patent applications number approximately 300 in the U.S. and approximately 900 outside the U.S." It has built this patent estate with an eye toward maintaining PCR licensing and royalty fees for some time into the future.

Because of the contribution that PCR has made in accelerating the genetic revolution—including the mapping of the human genome—I certainly think it is appropriate to remind all laboratorians that PCR is officially 20 years old in 2005!



Innovative AP Reports Created by Path Group

Great example of responding to market, clinicians like customized path reports

CEO SUMMARY: Too often local pathology groups fail to react to intensified sales competition for the biopsy referrals of clinicians in their community. In Torrance, California, the 30 pathologists of Pathology, Inc. decided it was time to invest capital and resources into developing their own flavor of"value-added" pathology services. These custom-tailored pathology reports are now pulling in new client accounts.



Quest Pays $934 Million In Acquisition of LabOne

Quest Diagnostics came a' courting... and LabOne decided to say"yes!"

CEO SUMMARY: In many ways, this acquisition would appear to be the"same old story" of lab consolidation that has marked the lab industry for almost 20 years. Yet, beneath the surface is an unexpected dimension: a motive to use the resources of both companies to better position Quest Diagnostics Incorporated to compete in the rapidly evolving national market for wellness services.



Picking Winners and Losers For the Molecular Test Menu

EXPERIENCE TEACHES VALUABLE LESSONS AT BEAUMONT

CEO SUMMARY: In the 15 years it has operated a molecular diagnostics testing program, Beaumont Reference Laboratory (BRL) has learned important lessons on how to evaluate which specific molecular assays are ready for clinical introduction. It has also learned effective ways to anticipate the clinical and financial success of such assays. Part II of this two-part series details some of the management strategies and methods BRL uses to sustain its financially-viable molecular testing program.



Proteomic Tests Poised For Clinical Market

Potential for earlier detection, higher sensitivity and specificity

CEO SUMMARY: Proteomics-based technology is developing rapidly. The strategic collaboration announced last month between Ciphergen Biosystems and Quest Diagnostics Incorporated is potentially worth $25 million. is an expensive bet that next-generation proteomics tests soon to enter the clinical marketplace will provide high clinical utility and give physicians new diagnostic tools.


INTELLIGENCE:

MORE CONSUMERS GET EXPERTS TO CHALLENGE ERRORS IN MED BILLS

"HIGH RISK" CONCERNS AT AP LAB CONDO CO.?

 

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