Medical Device Link.

Originally Published IVD Technology July 2004

INDUSTRY NEWS

With its acquisition of Amersham Biosciences (Piscataway, NJ), General Electric (GE; Chalfont St. Giles, UK) entered the race to establish itself as a major presence in the molecular diagnostics market. Together with GE Medical Systems, Amersham has become part of GE’s new healthcare division. 

The decision to shift its focus toward molecular diagnostics signifies a shift from the company’s traditional concentration on capital equipment, IT, and services. 

According to the president and CEO of GE Healthcare, Joe Hogan, the company will benefit from the former GE Medical Systems’ competency in engineering, informatics, and physics with Amersham’s expertise in biology and chemistry to “tailor treatments to patients much more specifically and less invasively than ever before.”

Company officials stated that one of the primary motivators behind GE’s purchase was the company’s interest in “accelerating the development of molecular imaging and personalized medicine [and] . . . bringing to market new targeted imaging agents and diagnostics.” And the company has set its sights high. GE representatives claim that the company is “ready to become the world’s best diagnostic company.” 

While GE representatives have expressed these lofty goals with bold intent, the company is not yet ready to comment on its plans for IVD product development. Similarly, representatives from the molecular division of Roche Diagnostics (Basel, Switzerland) declined to comment on what GE’s presence in the molecular diagnostic marketplace may mean for the industry. 

Although the IVD industry is not yet sure what to make of GE’s arrival, the sheer size of the $14 billion healthcare company changes the dynamics of the molecular diagnostic arena. This arena is populated primarily by smaller firms that are often at the mercy of drug companies when negotiating research and development or licensing deals. 

GE intends to immediately partner with pharmaceutical and other types of therapeutic companies when developing its diagnostics so that the firm can deliver information about each therapy as it is under investigation. The firm views such partnerships as integral to its business strategy.

Copyright ©2004 IVD Technology