Quest Diagnostics Plans to Sell HemoCue Testing System Division
In conjunction with its plan to refocus on diagnostic informational services, Quest Diagnostics announced Wednesday that it plans to sell its HemoCue diagnostic products division. Last month, the company sold off its OralDNA Labs business to Access Genetics as part of the same strategy.
HemoCue develops, produces, and sells testing systems that allow blood and urine tests to be run at the point of care rather than being sent to a centralized lab. OralDNA Labs helps dentists diagnose infections and HPV-related oral cancer.
Sales and profits from both divisions will now be reported as discontinued operations, reducing revenue by $117 million in 2012 and net income from continuing operations by $15 million. The company will take a charge of $89.5 million for the estimated asset impairment associated with HemoCue and the loss on the sale of OralDNA.
Quest released some more bad news ahead of reporting full fourth-quarter results on Jan. 23: The company estimates that Hurricane Sandy reduced revenue by $21 million and operating income by $16 million.
The article Quest Diagnostics Plans to Sell HemoCue Testing System Division originally appeared on Fool.com.Fool contributor Brian Orelli has no position in any stocks mentioned. The Motley Fool recommends Quest Diagnostics. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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