Bayer divests diagnostics to Siemens, eases impact of Schering acquisition

30 June 2006

The Bayer supervisory board approved the divestment today. "This decision is fully in line with our strategy for systematically aligning our health care business. We are concentrating on pharmaceuticals for both humans and animals, and products that can be promoted directly to patients," explained Bayer AG management board chairman Werner Wenning.

The consumer products Bayer HealthCare Diabetes Care will not be affected by the transaction, nor is the contrast agents (diagnostic imaging) business of Schering AG, which will form an important part of the future Bayer Schering Pharma AG.

Wenning said that the systems business of the Diagnostics Division with its emphasis on hardware, IT networking and comprehensive equipment service, was subject to different success factors than the other Bayer HealthCare divisions and the company was therefore divesting these activities as part of the consolidation phase in the diagnostics market.

"We are convinced that the successful laboratory equipment business has even better long-term development prospects in a company specialising in medical technology," he added.

The closing of the transaction is expected for the first half of 2007, subject to the approval of the antitrust authorities.

According to Dr Klaus Kleinfeld, the president and CEO, Siemens, "Demographic change is greatly increasing global demand for healthcare services and thereby generating excellent growth opportunities for Siemens. The acquisition of Bayer Diagnostics is part of our targeted strategy to create the healthcare industry''s first integrated diagnostics company by combining the entire imaging diagnostics, laboratory diagnostics and clinical IT value chain under one roof."