Bayer HealthCare to sell diagnostics arm to Siemens

Bayer HealthCare has agreed to sell its diagnostics division to its fellow German company, Siemens AG.

Siemens’ acquisition will be completed during the first half of 2007 after a 4.2 billion euro (2.9 billion pounds) fee was agreed between the two companies. Bayer’s supervisory board chairman, Werner Wenning, said that decision to sell was “fully in line” with the company’s strategy to realign its healthcare division, admitting that the group was focusing on both human and animal pharmaceuticals.

In a statement, Bayer said that the diagnostic imaging section of Schering AG – with which it is about to merge – would not be affected.

Arthur Higgins, chairman of Bayer HealthCare’s board of management, stated: “Bayer HealthCare Diagnostics has grown considerably faster than the market in terms of earnings and profitability over the past three years. So now is the right time to divest this successful business and thereby add value for the Bayer Group.”

The chief executive officer of Siemens Medical Solutions, Arthur Higgins – who will soon head the Bayer Schering Group, added: “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.”

Mr Higgins concluded: “The aim is to enable trend-setting innovations that improve the quality of health care through early, specific and efficient diagnostic solutions and thus to address the growing global demand for superior health care solutions.”

Bayer HealthCare’s sales increased during 2005 by 8.4 per cent.

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