The latest annual reports from the three leading pathology companies that provided large-scale PCR testing during the pandemic reveal significant gains from the COVID-19 era.
Global pathology provider Sonic Healthcare has posted a record net profit of $1.46 billion (US$950 million). That’s an 11% year-over-year increase, and revenue was up 7% to $9.3 billion.
The company is the largest provider of medical testing and pathology services in Australasia, Europe, and the third largest in the United States.
“Sonic’s balance sheet is very strong after two years of exceptional earnings and cash flow generation,” said Chairman Mark Compton. annual report.
“Twelve months ago, we did not expect COVID-related revenues to grow by 13% in 2022. Forecasting future revenues from COVID-19 testing remains difficult. Continued demand is expected, coupled with an increase in seasonally weighted testing for systemic viruses.”
In Australia, we operate brands such as Sullivan Nicolaides, Douglass Hanly and Melbourne Pathology. This group was a major provider of mandated PCR testing services for individuals wishing to work or travel, especially before rapid antigen test results were widely accepted.
Meanwhile, Healius Pathology, which operates 2,000 patient collection centers across Australia, including brands such as QML, Laverty, Dorevitch and Western Diagnostic Pathology, also had a strong year.
“I am sure most of our readers are fed up with COVID-19, but I have to thank our team for their exceptional response during the challenges of the Delta and Omicron outbreaks. Our pathology team performed 65,000 COVID-19 PCR tests every day this year, which is an incredible accomplishment,” said Chairman Robert Hubbard and CEO Malcolm Parmenter in the company’s annual report. said in a letterpdf).
The company estimates it has conducted about 13 million COVID-19 tests to date.
Healius’ net income doubled to $309.3 million from $148.4 million a year earlier. Also, as of June 2022, revenue has increased by 30% from $1.45 billion to $1.89 billion.
According to the company’s annual report, PCR tests have steadily declined to about 10,000 to 12,000 per day since February, with Omicron in particular becoming endemic.
Healius also noted that the impact of “state-based lockdowns, elective surgery restrictions, and isolation requirements” has reduced pathology tests related to non-COVID-related conditions, and that as the population ages, the He also mentioned that the number of tests to be performed will decrease in the future. You can exit and climb these areas.
The company’s assessment comes after the Australian Bureau of Statistics recorded an increase in deaths from conditions such as cancer, dementia and diabetes in 2022, with some physicians suggesting patients see doctors more regularly. warns that it may be due to not being examined for COVID-19.
Meanwhile, Australian Clinical Labs, which operates 1,336 collection centers nationwide, posted a strong 101% increase in after-tax profit, jumping from $60.4 million to $178.2 million by June 2022. rice field. to $996 million.
The company’s annual report (pdf).
“This is due to lockdowns, access issues to doctors, declining levels of testing for non-COVID services (e.g. flu) and social factors (reluctance to visit medical practitioners). As it declines, non-COVID test revenues should recover as the underlying drivers are still being applied.”