Siemens continued its buying spree in the laboratory testing market with the acquisition of the diagnostic arm of German company Bayer for around €4.2bn (£2.9bn). This makes Siemens one of the largest businesses in in vitro and in vivo diagnostics after Roche and Abbott Laboratories.

The Bayer deal is the company’s second acquisition in less than three months – having just received clearance on its $1.86bn agreement with US immunodiagnostics company Diagnostic Products Corporation (DPC) announced earlier in April.

The two acquisitions will allow Siemens Medical Solutions to gain a stronger presence in molecular diagnostics. Bayer Diagnostics offers a portfolio of products for evaluating and monitoring diseases such as cardiovascular disorders, diabetes, and infections. And Siemens says that the takeover will fuel further innovations and improve the quality of healthcare through early, specific, and efficient diagnostic solutions.

Earlier in June, Siemens, sold its troubled telecommunications equipment division and agreed to merge it with Nokia for €20bn (£13.8bn). It says that it will now focus on its most profitable areas.

“Demographic change is greatly increasing global demand for healthcare services and thereby generating excellent growth opportunities for Siemens, “ explained Dr Klaus Kleinfield, Siemen’s president and chief executive officer. “The acquisition of Bayer Diagnostics is part of our targeted strategy to create the healthcare industry’s first integrated diagnostics and clinical IT value chain under one roof.”

Meanwhile, Bayer is believed to have sold €1.2bn of its shares to buy rival pharmaceutical company Schering, becoming the largest drugmaker in Germany.

“We are concentrating on pharmaceuticals for both humans and animals, and products that can be promoted directly to patients,” explained Bayer AG management board chair Werner Wenning.

“We are convinced that the successful laboratory equipment business has even better long-term development prospects in a company specializing in medical technology,” he said. "Closing of the transaction is expected for the first half of 2007, subject to the approval of the antitrust authorities."

By Rashmi Misra

Global medical imaging giant Siemens Medical Solutions has announced its intention to move into the in vitro diagnostics market with the $1.86bn acquisition of UK-based immunodiagnostics provider Diagnostics Products Corporation (DPC).

DPC will become a wholly owned subsidiary of US-based Siemens Medical Solutions and each shareholder of DPC will receive $58.50 per share for each share of DPC stock. The DPC acquisition is also part of plans by Siemens to expand its healthcare solutions portfolio and move towards early and specific diagnosis and individualized patient therapy.

“We are impressed with DPC’s track record in developing a globally leading immunodiagnostics business and by the quality of people,” said Erich R Reinhart, president and chief executive officer of Siemens Medical Solutions. “Together, both companies will be empowered to continue to revolutionise the prevention, diagnosis, treatment and management of the disease.”

Judi Jackson, general manager of DPC in the UK told HES that the terms of the contracts are still being discussed but there will be no cross-over of businesses between DPC and Siemens, and the diagnostics company is likely to continue to work under the same name.

“This is very positive news for the DPC and the in vitro diagnostics market,” continued Jackson. “Finally, money is being put into this industry and the breadth of opportunities that the merger offers is huge. Siemens is involved in everything from PFI, medical imaging to finance. This allows DPC to be part of the bigger market. In addition, the deal brings a new player into the market and keeps competition on its toes.”

The deal will also allow the merging of technologies in diagnostic imaging, healthcare information technology, molecular biology and biochemistry.

DPC provides a range of diagnostic tests designed for the detection and management of disease, including adrenal/ pituitary dysfunction, anaemia, bone metabolism disturbances, hormones, and cardiovascular disease.

“It is all about creating a synergy between our companies. For example, Siemens make hand-held ultrasounds and we can provide our expertise in hormone testing for pregnancies to the point of care,” added Jackson.

DPC operates in more than 100 countries, providing a wide range of immunodiagnostic solutions for hospitals, clinics and laboratories. The company specialises in the development, manufacture and distribution of automated body fluid analysers and tests, for diseases such as cancer and cardiac conditions, as well as for hormone and allergy conditions.

An expansion of Siemens’ healthcare solutions portfolio is planned to drive the company’s objective of delivering early and specific diagnosis and individualised patient therapy.

DPC CEO Michael Ziering is also optimistic about the merger: “We believe that this merger will be a very positive development for the future of our employees, customers and the company as a whole. This merger will allow us to continue on our current rapid course of development while also providing DPC access to the resources and support of a recognised leader in the delivery of integrated healthcare solutions.”

03.01.2007, icare New Business —“Siemens Medical Solutions Diagnostics”— founded in the United States Acquisition of Bayer’s Diagnostic Division Finalized The acquisition of Bayer Healthcare’s diagnostic division by Siemens Medical Solutions has been completed.