Siemens Group Forms the World's First Full Service Diagnostics

SIEMENSSiemens has been given the green light to acquire the diagnostics division of Bayer Healthcare without restrictions. The approval was granted yesterday by the European Commission, following the earlier approval by U.S. antitrust authorities at the beginning of October. This follows the acquisition of the U.S. firm Diagnostic Products Corporation (DPC), which was completed at the end of July. Upon completion of the Bayer acquisition, which is expected by early 2007, both companies will be merged and will operate as "Siemens Medical Solutions Diagnostics," an U.S.-based subsidiary and part of Siemens Medical Solutions.

"This has paved the way for Siemens to create the world's first full service diagnostics company," explained Prof. Dr. Erich R. Reinhardt, member of the Managing Board of Siemens AG and president and CEO of Siemens Medical Solutions (Med), following the Commission's decision. The successful entry into the in-vitro diagnostics market will allow the company to combine the entire imaging diagnostics, laboratory diagnostics and clinical information technology value chain under one roof and offer its customers customized solutions. "This will further improve the quality and efficiency of healthcare," commented Reinhardt.

The purchase price for Bayer Diagnostics is roughly EUR 4.2 billion; in fiscal 2005 the Group generated sales of EUR 1.4 billion and a double-digit profit margin related to earnings before interest, tax, depreciation and amortization (EBITDA). The acquisitions of Bayer Diagnostics and DPC (the latter completed in July for a purchase price of US$1.86 billion) will make Siemens Medical Solutions No. 2 worldwide in immunodiagnostics. Bayer Diagnostics is also a world market leader in clinical chemistry with a leading position in near-patient testing, laboratory automation and hematology (blood cell diagnostics). In addition, the acquisition of Bayer Diagnostics will enable the Siemens Group to tap the rapidly growing market for molecular diagnostics based on gene analysis (nucleid acid testing).

"Molecular medicine has huge potential to detect diseases such as cancer at a much earlier stage than what is possible today," said Reinhardt. "Molecular medicine is already helping physicians choose suitable medications for a particular patient, predict the effects of those medications and personalize patients' treatments. The long-term vision is to identify and treat the molecular causes of diseases long before the patient ever experiences any symptoms, and Siemens is at the forefront of developing these molecular medicine solutions that will transform the future of healthcare."

Sales of Bayer Diagnostics rose in 2005 by 8.4 percent to EUR 1.4 billion. The division offers an extensive portfolio 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(R), Centaur(R) CP and Centaur(R) XP, ADVIA(R) Clinical Chemistry, ADVIA(R) LabCell(R) and WorkCell(R) Automation, ADVIA(R) Hematology and Clinitek(R) Atlas systems; Near Patient Testing with its Rapidpoint(R), Rapidlab(R), RapidComm(TM) and Clinitek(R) brands; and Molecular Testing with its Trugene(R) and Versant(R) lines of tests and systems.

About Siemens Medical Solutions
Siemens Medical Solutions (Med) (NYSE:SI) is one of the world's largest suppliers to the healthcare industry. The company is known for bringing together innovative medical technologies, healthcare information systems, management consulting, and support services, to help customers achieve tangible, sustainable, clinical and financial outcomes. From imaging systems for diagnosis, to therapy equipment for treatment, to patient monitors to hearing instruments and beyond, Siemens innovations contribute to the health and well-being of people across the globe, while improving operational efficiencies and optimizing workflow in hospitals, clinics, home health agencies and doctors' offices. Employing approximately 33,000 people worldwide and operating in more than 120 countries, Siemens Medical Solutions reported sales of 7.6 billion EUR, orders of 8.6 billion EUR and Group profit of 976 million EUR for fiscal 2005 (September 30).
http://www.medical.siemens.com/

Most Popular Now

AI in Personalized Cancer Medicine: New …

The application of AI in precision oncology has so far been largely confined to the development of new drugs and had only limited impact on the personalisation of therapies. New...

AI can Predict Brain Cancer Patients…

Artificial Intelligence (AI) can predict whether adult patients with brain cancer will survive more than eight months after receiving radiotherapy treatment. The use of the AI to successfully predict patient outcomes...

Max Planck Institute for Informatics and…

The Max Planck Institute for Informatics and Google deepen their strategic research partnership. With additional financial support from the U.S. IT company, the "Saarbr├╝cken Research Center for Visual Computing, Interaction...

JMIR Medical Informatics Invites Submiss…

JMIR Publications has announced a new section titled, "AI Language Models in Health Care" in JMIR Medical Informatics. This leading peer-reviewed journal is indexed in PubMed and has a unique...

Paper Calls for Patient-First Regulation…

Ever wonder if the latest and greatest artificial intelligence (AI) tool you read about in the morning paper is going to save your life? A new study published in JAMA...

Could ChatGPT Help or Hurt Scientific Re…

Since its introduction to the public in November 2022, ChatGPT, an artificial intelligence system, has substantially grown in use, creating written stories, graphics, art and more with just a short...

Evaluating the Performance of AI-Based L…

A new study evaluates an artificial intelligence (AI)-based algorithm for autocontouring prior to radiotherapy in head and neck cancer. Manual contouring to pinpoint the area of treatment requires significant time...

Making AI a Partner in Neuroscientific D…

The past year has seen major advances in Large Language Models (LLMs) such as ChatGPT. The ability of these models to interpret and produce human text sources (and other sequence...

Chapman Scientists Code ChatGPT to Desig…

Generative artificial intelligence platforms, from ChatGPT to Midjourney, grabbed headlines in 2023. But GenAI can do more than create collaged images and help write emails - it can also design...

DMEA nova Award: Wanted - Visionary Solu…

9 - 11 April 2024, Berlin, Germany. The DMEA nova Award is being presented at DMEA 2024 for the first time. The award honours a digital health startup for an outstanding...

New Digital Therapy Reduces Anxiety and …

A therapist-guided digital cognitive behavioural therapy reduced distress in 89 per cent of participants living with long-term physical health conditions, a new King's College London study finds. Researchers at the Institute...

Europe's Digital Health Industry Me…

9 - 11 April 2024, Berlin, Germany. In just over two months, from 9 to 11 April 2024, DMEA, Europe's leading event for digitalisation of healthcare, will gather digital health experts...