Bayer unit bought for billions

has signed an agreement with Bayer to acquire the chemical and pharmaceutical company’s

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According to a statement from Siemens, the acquisition will enable Siemens Medical Solutions (Med) to expand its position in the high-growth molecular diagnostics market. At the end of April, Siemens announced the planned acquisition of Diagnostic Products Corporation (DPC) in the US, a leading company in immunodiagnostics. The purchase price for Bayer Diagnostics – which had sales of €1.4 billion and a double-digit EBITDA margin in fiscal 2005 – is roughly €4.2 billion.

”The acquisition of Bayer Diagnostics is part of our targeted strategy to create the healthcare industry’s first integrated diagnostics company by combining the entire imaging diagnostics, laboratory diagnostics and clinical IT value chain under one roof,” said Dr. Klaus Kleinfeld, Siemens President and CEO.

Dr. Erich R. Reinhardt, member of the Siemens Managing Board and President of Siemens’ Medical Solutions Group, commented: “Molecular medicine is becoming increasingly important since it enables healthcare professionals to identify the causes of disease using genetic profiles.

"With the help of molecular medicine, it will be possible not only to predict the effects of the medications selected and tailor treatment for individual patients, but also to diagnose disease at an early stage. The planned acquisition of DPC has provided us with access to laboratory diagnostics. With the acquisition of Bayer Diagnostics, we will now have a comprehensive portfolio in this key future-oriented market.”

The acquisition of the Bayer unit will enable the Siemens Group to tap the rapidly growing market for molecular diagnostics based on gene analysis (nucleid acid testing). Bayer Diagnostics is also a world market-leader in clinical chemistry with strong position in near-patient testing, laboratory automation and hematology.