The G2 Diagnostic Stock Index gained 14 percent during 2012. Eleven stocks gained for the period from Dec. 16, 2011, to Dec. 12, 2012, and four stocks declined. Despite closing the year markedly up, the G2 Diagnostic Stock Index underperformed the broader stock markets in 2012. The Nasdaq and the S&P both gained substantially over the same period, with the Nasdaq up 18 percent and the S&P increasing 17 percent.Among the notable acquisitions in the diagnostics industry over the past year were two G2 Diagnostic Stock Index companies. The sale of Iris International (Chatsworth, Calif.) to Danaher (Washington, D.C.) for $355 million closed Oct. 31, and Hologic (Marlborough, Mass.) completed the acquisition of Gen-Probe (San Diego) for $3.7 billion on July 31. As a result of the acquisitions both IRIS and Gen-Probe were removed from the index. The stock gaining the most in 2012 was Illumina (San Diego), which began the year fighting off a hostile takeover bid from Roche and ended the year losing in a bidding war with China’s BGI-Shenzhen to acquire sequencing competitor Complete Genomics (Mountain View, Calif.). For the year Illumina’s shares gained 98 percent, with its Dec. 12 share price of $53.22 just shy of its 52-week high. OraSure Technologies (Bethlahem, Pa.) ended the year down 20 percent. Despite the much talked about launch of its rapid OraQuick In-Home HIV Test, the company’s shares dropped sharply in November, largely due to a weak third-quarter financial report. No revenue was recorded in the third quarter related to the initial shipments of the home HIV test, although approximately $3.6 million in deferred revenue was recorded for the product—an estimated 142,000 tests. The company also forecast weak fourth-quarter results.