Siemens Completes Acquisition of Diagnostic Products Corporation; When Pending Acquisition of Bayer Diagnostics is Complete, Si
July 27 2006 - 6:56PM
Business Wire
Siemens announced today that it has completed its acquisition of
Diagnostic Products Corporation (DPC) (NYSE:DP), marking a
significant milestone for Siemens as it enters the in-vitro
diagnostics (IVD) market. Together with DPC, Siemens Medical
Solutions will become the first full service diagnostics company.
Earlier today, DPC shareholders approved the merger of DPC and a
wholly owned subsidiary of Siemens Medical Solutions, Inc. In the
merger, which is now complete, each share of DPC common stock was
converted into the right to receive a cash payment of $58.50 per
share. Founded in 1971, DPC is a global leader in
immunodiagnostics, 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. This acquisition is just the first step for
Siemens - on June 29, 2006, Siemens announced its intent to acquire
Bayer Healthcare's Diagnostics Division (subject to regulatory
approvals). "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," said Erich R. Reinhardt, president and CEO of Siemens
Medical Solutions of Siemens AG (NYSE:SI). "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." Reinhardt further explained that the
mergers will also expand Siemens' competencies in the innovative
and fast-growing area of molecular medicine from in-vivo molecular
imaging, e.g. PET imaging (positron emission tomography), to the
in-vitro field, being of specific importance for the early
detection of disease. Molecular medicine has the proven potential
to enable healthcare professionals to identify risks for disease
based on a patient's genetics, and isolate the molecular makeup of
an illness long before a patient ever experiences outward signs of
disease. In addition, molecular medicine will help physicians
choose suitable medications for a particular patient, predict the
effects of those medications, and personalize a patient's
treatment. Once the acquisition of Bayer Diagnostics is complete,
Siemens will offer solutions in immunodiagnostics, genetic testing,
near-patient testing, clinical chemistry, lab automation,
hematology (blood cell diagnostics), and beyond. Siemens 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 (IT), molecular biology, and
biochemistry to its customers, driving and leading the advancement
of personalized healthcare. "DPC employees are looking forward to
working with our new Siemens colleagues to drive innovations to
help our customers improve their results," said Michael Ziering,
who will continue to serve as CEO of DPC. "We now will have access
to a global research and development network that complements and
broadens our existing capabilities. We believe that this is a great
benefit for existing DPC customers as we take this exciting step
forward." Prior to the merger, DPC was the world's leading
independent producer of immunodiagnostic products. The company's
diagnostic tests supply information vital to the detection and
management of disease, including adrenal/pituitary dysfunction,
allergy, anemia, bone metabolism disturbances, cancer,
cardiovascular disease, diabetes, and reproductive and thyroid
disorders. DPC's product offering includes the widely accepted
IMMULITE(R) series of immunoassay systems, more than 75
immunoassays, and over 370 allergens and allergy panels. Siemens
Medical Solutions, with headquarters in Malvern, Pennsylvania, and
Erlangen, Germany, is one of the largest suppliers to the
healthcare industry in the world. 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. Employing approximately 35,000 people worldwide and
operating in more than 120 countries, Siemens Medical Solutions
reported sales of EUR 7.6 billion, orders of EUR 8.6 billion and
group profit of EUR 976 million for fiscal 2005 (September 30).
More information can be obtained by visiting
www.usa.siemens.com/medical-pressroom and www.dpcweb.com. In
addition to the historical information contained herein, this press
release contains forward-looking statements that involve risks and
uncertainties that could cause actual results to differ materially
from those currently anticipated as a result of a number of
factors, including, without limitation, risks and uncertainties
related to receipt of regulatory approvals required in connection
with the acquisition of Bayer Healthcare's Diagnostics Division;
governmental or other action relating to DPC's Chinese affiliate;
the rate of customer demand for DPC's products; DPC's ability to
successfully market new and existing products; DPC's dependence on
certain suppliers; domestic and foreign government regulation;
DPC's ability to keep abreast of technological innovations and to
translate them into new products; competition; political and
economic instability in certain markets; movements of foreign
currencies relative to the dollar; and other risks and
uncertainties disclosed from time to time in DPC's reports and
filings with the Securities and Exchange Commission. We cannot
assure that the anticipated benefits from the combination of these
businesses will be realized, and we assume no obligation to update
any forward-looking statements as a result of new information or
future events or developments.
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