Bayer to sell diagnostics business to Siemens for Euro 4.2 bn
The Bayer Group plans to sell the Diagnostics Division of Bayer HealthCare to Siemens, in Munich, Germany, for Euro 4.2 bn (US$5.4bn). The company says the move is part of its ongoing healthcare strategy and not motivated by the Schering acquisition.
The Bayer Group plans to sell the Diagnostics Division of Bayer HealthCare to Siemens, in Munich, Germany, for Euro 4.2 bn (US$5.4bn). The company says the move is part of its ongoing healthcare strategy and not motivated by the Schering acquisition.
"This decision is fully in line with our strategy for systematically aligning our healthcare business. We are concentrating on pharmaceuticals for both humans and animals, and products that can be promoted directly to patients," explained Bayer management board chairman Werner Wenning.
The systems business of the Diagnostics Division, with its emphasis on hardware, IT networking and comprehensive equipment service, is subject to different success factors than other Bayer HealthCare divisions. Wenning said Bayer is therefore divesting these activities as part of the consolidation phase in the diagnostics market.
"We are convinced that the successful laboratory equipment business has even better long-term development prospects in a company specialising in medical technology," he added.
The Diabetes Care Division is not affected by the transaction, nor is the contrast agents (diagnostic imaging) business of Schering AG, which will form part of the future Bayer Schering Pharma AG.
Erich Reinhardt, ceo and president of Siemens Medical Solutions said: "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."
Sales of Bayer HealthCare Diagnostics rose in 2005 by 8.4% to euro 1.4 bn. The division employs more than 5,000 people worldwide in the supply of in-vitro diagnostic products for evaluating and monitoring the therapy of numerous diseases, including cardiovascular disorders, kidney diseases, infections, cancer and diabetes.
The business units are Laboratory Testing, including the ADVIA Centaur and Centaur CP, ADVIA Clinical Chemistry, ADVIA LabCell and WorkCell Automation, ADVIA Hematology and Clinitek Atlas systems; Near Patient Testing, with its Rapidpoint, Rapidlab, RapidComm and Clinitek brands; and Molecular Testing, with its Trugene and Versant lines of tests and systems.