IVD Technology Magazine
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Originally published November, 1998

IVD Technology News

Bayer buys Chiron division and enters molecular diagnostic field

For the tidy sum of $1.1 billion, Bayer Group is now the proud owner of Chiron's IVD business. By acquiring Chiron Diagnostic Corp. (Walpole, MA), Bayer Diagnostics (Tarrytown, NJ) will expand its product line and developmental pipeline to encompass technologies in molecular diagnostics, immunodiagnostics, and critical-care blood gas analyzers.

Bayer will now have a solid platform from which to enter the rapidly growing field of molecular diagnostics. Mark Ryan of Bayer's media relations department says that, "the technology of nucleic acid diagnostics was the prime reason for the acquisition." Although the acquisition has been announced, the final and official agreement will not be reached for several weeks.

The decision of Chiron Corp. (Emeryville, CA) to sell off its diagnostics business was, in part, a bow to the realities of the competitive marketplace. "To be a strong competitor in an IVD industry that is seeing increasing consolidation, a company needs a certain critical mass, which Chiron Diagnostics didn't have," says Julie Wood of Chiron's corporate communications department. "Chiron Corp. felt it could more effectively participate by divesting certain aspects of its IVD business to Bayer, while retaining some intellectual property rights and enjoying the royalties from them."

Rights that Chiron Corp. will retain include those for its hepatitis C and human immunodeficiency virus blood-screening assays. Chiron will continue its blood-screening business, but will invest more of its resources into areas of therapeutics and vaccines. According to Chiron Diagnostics' corporate communications manager, Judith Rossi, Chiron Diagnostics is no longer an entity and the division is expected to be under full Bayer management within four months.—Gary Woo