EDITOR'S PAGE
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Siemens Medical Solutions (Malvern, PA) did some very serious shopping this past spring (see Industry News). Within a couple of months, Siemens spent more than $7 billion to acquire two major IVD manufacturers: Diagnostic Products Corp. (DPC; Los Angeles) and Bayer Diagnostics (Tarrytown, NY). With these acquisitions, besides becoming the second-largest developer of immunoassays overnight, Siemens has joined the ranks of the top IVD companies in the world.
The Siemens acquisitions of DPC and Bayer are unprecedented in the IVD industry. Buying even one company of such a size is a big deal; acquiring two major companies in such a short period of time is astounding. When asked about the close timing of the acquisitions, Siemens officials were matter-of-fact, saying that the company is always looking for growth opportunities, leaving the impression that the timing was merely a coincidence. But the question remains: What does Siemens, a company that has been involved primarily in diagnostic imaging, plan to do after investing a huge sum of money into IVDs?
Some industry analysts believe that the Siemens acquisitions are simply the case of a medical device company with well-established imaging technologies broadening its portfolio of diagnostic tools by adding IVDs. By making this multi-billion-dollar investment to acquire DPC and Bayer, Siemens has demonstrated a strong belief that there is a bright future in IVDs. However, Siemens officials said that the company plans to do much more than merely expand its product line.
When asked about the reasons behind the acquisitions, Siemens officials stressed their intention to create the first fully integrated diagnostics company that brings together IVDs, in vivo imaging, and healthcare information technology. Siemens foresees a convergence of IVD and in vivo technologies such that the two technologies will work hand-in-hand and be closely linked for providing clinical diagnoses. In particular, Siemens sees an important role in this convergence for molecular diagnostics, which was one of the company's motivating factors for acquiring Bayer.
Some analysts believe that the Siemens acquisitions and its sudden emergence as a major IVD company could signal a paradigm shift in how IVDs are developed and delivered. If Siemens succeeds in this convergence of IVD and in vivo technologies, other IVD manufacturers may have to follow suit by bringing in vivo technologies into their product offerings. Such changes may be necessary in order to compete and keep up with Siemens and other IVD companies that employ this new model.
