Siemens Stages Entry as New Diagnostics Powerhouse

In a bold push to expand the position of its Medical Solutions group in the fast-growing in vitro and molecular diagnostics markets, Siemens AG has agreed to acquire two major diagnostic companies.

Following hard on the news of the acquisition of Schering by BayerAG (Leverkusen, Germany), Siemens agreed to acquire the Diagnostics Division of Bayer HealthCare for €4.2 billion. Included in the acquisition, which has been approved by the Bayer supervisory board, is an extensive portfolio of in vitro diagnostics products for evaluating and monitoring the therapy of numerous diseases. Also included is the systems business, which includes hardware, information technology (IT) networking, and comprehensive equipment service. Not included are the Diabetes Care Division of Bayer and the diagnostic imaging business of Schering.

"With this acquisition we are continuing to consistently pursue our strategy of building the industry's first integrated diagnostics company that combines diagnostic imaging, laboratory diagnostics, and clinical information technology under one roof right along the value chain,” explained Erich Reinhardt, CEO and president of Siemens Medical Solutions and member of the managing board of Siemens AG (Munich, Germany). "The aim is to enable trend-setting innovations that improve the quality of health care through early, specific, and efficient diagnostic solutions and thus to address the growing global demand for superior health care solutions.”

Sales of Bayer HealthCare Diagnostics rose in 2005 by 8.4% to $1.75 billion. The division employs more than 5,000 people worldwide. The business units include laboratory testing (Advia Centaur and Centaur CP), Advia Clinical Chemistry, Advia LabCell and WorkCell automation, Advia hematology and Clinitek Atlas systems; near-patient testing, with Rapidpoint, Rapidlab, RapidComm, and Clinitek brands; and molecular testing, with the Trugene and Versant lines of tests and systems.

Only two months earlier, Siemens agreed to acquire Diagnostics Products Corp. (DPC, Los Angeles, USA) for about $1.86 billion. Through its presence in more than 100 countries, DPC offers immunodiagnostic solutions to hospitals, clinics, and laboratories across the globe. Founded in 1971, DPC is the world's leading independent producer of immunodiagnostic products, including the widely accepted Immulite immunoassay systems, as well as assay systems for a wide range of diseases and disorders.

This acquisition was also intended to add to Siemens' existing health care solutions portfolio and further the company's objective to enable early and specific diagnosis and individualized patient therapy. "We are impressed by DPC's track record in developing a global, leading immunodiagnostic business and by the quality of its people,” Reinhardt said, adding, "Together, both companies will be empowered to continue to revolutionize the prevention, diagnosis, treatment, and management of disease.”



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