Medical Device Daily

Siemens (Erlangen, Germany/Malvern, Pennsylvania) reported completing its acquisition of Diagnostic Products Corporation (DPC; Los Angeles), saying that the purchase marks “a significant milestone” enabling it to enter the in vitro diagnostics (IVD) market.

The company said that with DPC, it “will become the first full-service diagnostics company.”

Siemens in late April unveiled its plan to acquire DPC for $1.68 billion (Medical Device Daily, April 28, 2006), and late last week DPC shareholders approved the merger into a wholly owned subsidiary of Siemens Medical. Each share of DPC common stock will be converted into the right to receive cash of $58.50 a share.

DPC is a leading immunodiagnostics company, focusing on developing, manufacturing, and distributing automated body fluid analyzers and tests, such as those related to cancer and cardiac disease, as well as hormone and allergy conditions.

The acquisition combines with Siemens' intent to acquire Bayer Diagnostics (Tarrytown, New York), the diagnostics division of Bayer (Leverkusen, Germany), disclosed in late June, for $5.3 billion (Medical Device Daily, July 5, 2006).

Erich Reinhardt, president/CEO of Siemens Medical Solutions, said, “Today is just the beginning of a fascinating new chapter for Siemens Medical Solutions. DPC is an ideal fit, as it has a similar philosophy to Siemens, with a dedication to trendsetting innovation, customer partnership, and efficiency in healthcare.”

“Combining the strengths of DPC and Bayer Diagnostics with those of Siemens Medical Solutions, we will be in a position to offer our customers and partners an unbeatable IVD combination and a most comprehensive portfolio covering both in vivo and in vitro diagnostics, combined with powerful IT solutions,” he said.

Reinhardt said the mergers also will expand Siemens' competencies in the area of molecular medicine from in vivo molecular imaging – for instance, using positron emission tomography imaging – to the in vitro field, being of specific importance for the early detection of disease.

Siemens said it will “bridge the gap between in vivo and in vitro diagnostics and offer a unique blend of expertise and technologies in diagnostic imaging, healthcare information technology, molecular biology, and biochemistry . . . driving and leading the advancement of personalized healthcare.”

Michael Ziering, who will continue to serve as CEO of DPC, said, “We now will have access to a global research and development network that complements and broadens our existing capabilities.”

DPC said that prior to the merger it was “the world's leading independent producer of immunodiagnostic products.” The company's diagnostic tests supply information for the detection and management of disease, including adrenal/pituitary dysfunction, allergy, anemia, bone metabolism disturbances, cancer, cardiovascular disease, diabetes, and reproductive and thyroid disorders.

In another large deal marking further consolidation in the imaging sector, Hologic (Bedford, Massachusetts), a provider of diagnostic imaging and digital imaging systems for women's health, reported completing the purchase of Suros Surgical Systems (Indianapolis). The deal was first unveiled in April (MDD, April 19, 2006).

The purchase price, exclusive of certain transaction costs and expenses, is about $240 million, payable in about $135 million in cash and 2.33 million shares of common stock. In addition, an earn-out will be payable in two annual cash installments equal to the revenue growth in Suros's business in the two years following the closing.

“This acquisition is an important milestone in the execution of our overall strategy to grow our business and expand our presence in the women's health market,” said Jack Cumming, CEO and chairman of Hologic. “Combined, we will share one goal, to work together to advance technology for women' healthcare.”

He added: “We believe the increasing adoption of minimally invasive procedures, such as vacuum-assisted breast biopsy, will improve patient safety, advance the quality of care and reduce costs.”

Suros's Automated Tissue Excision and Collection (ATEC) line of products include percutaneous, automatic vacuum-assisted breast biopsy systems, ancillary breast biopsy devices and biopsy site markers. In addition to more conventional image guidance compatibility, ATEC has become the market leader in MRI-guided breast biopsy technology, the company said.

Jim Pearson, president/CEO of Suros, said, “We believe Hologic's industry presence and experience will facilitate getting the ATEC Breast Biopsy and Excision System in the hands of physicians, which will only benefit their patients worldwide.”

The ATEC Breast Biopsy and Excision System is compatible with stereotactic X-ray, ultrasound and MRI systems using the all-in-one ATEC Sapphire, MRI only with the ATEC Emerald, or ultrasound and stereotactic only using the ATEC Pearl.

Hologic manufactures imaging technologies focused on mammography and breast biopsy, osteoporosis assessment, and mini C-arm and extremity MRI imaging for orthopedic applications.