Toxicology Laboratories - Industry Market Research Report

Toxicology Laboratories

Major companies in the Toxicology Laboratories industry include Abbott Laboratories (Abbott) and Quest Diagnostics Inc. (Quest Diagnostics), these two largest companies in the industry together account for a significant share of industry revenue. The main services of this industry are urine testing, hair testing, blood testing, saliva testing and others.

Mergers and acquisitions expand top companies' market share

- Quest Diagnostics has increased its market share in the industry through the acquisition of other drug testing companies. For instance, the company acquired Solstas Lab Partners Group and Summit Health Inc. in 2014. In 2015, Quest Diagnostics also purchased certain operations of MemorialCare Health System. Similarly, Abbott participates in the Toxicology Laboratories industry primarily through its business segment that was formerly Alere Toxicology Inc., which it acquired in 2017.

Companies compete on price, proximity, service and reputation

- Typically, toxicology labs compete on the basis of price, location, quality of service and reputation. In recent years, there has been significant growth in the number of people participating in managed-care plans. Managed-care organizations have used their market power to negotiate lower prices for laboratory tests, including toxicology tests. As a result, this trend strengthens the industry's competition to offer low-priced toxicology tests.

This industry receives and independently analyzes samples of biological material for various toxins, primarily drugs. Services include blood testing, saliva testing and urine testing. Employers, the medical community and law enforcement are major purchasers of this industry’s services.

This report covers the scope, size, disposition and growth of the industry including the key sensitivities and success factors. Also included are five year industry forecasts, growth rates and an analysis of the industry key players and their market shares.