Medical diagnostic merger
The recently announced acquisition of US-based Biosite, a maker of blood test devices, by larger diagnostics maker US-based Beckman Coulter is one in a series of consolidating moves in that industry. The Biosite deal is for over $1.5 billion. The two companies have worked cooperatively over the past four years to develop a device for diagnosing congestive heart failure.
Of course, every acquisition announcement now seems to trigger a counterbid. This bid is from Inverness Medical Innovations, A US-based company that develops pregnancy and fertility tests. They have bid a little more than Beckman Coulter. While analysts generally (as always) think that Beckman was paying too much for Biosite, they think that the far weaker Inverness is compounding the mistake.
Other recent deals in this area include:
- The 2006 purchase of Germany-based Bayer's diagnostic equipment division by Germany's Siemens for $5.3 billion
- The 2006 acquisition of US-based Diagnostic Products for $1.8 billion.
- The 2007 acquisition of Abbott Laboratories' diagnostic division by
General Electric ($8.13 billion).
- Beckman Coulter's purchase of immunoassay maker Lumigen in 2006 for $185 million
These moves are all part of a larger set of roll-up in the healthcare industry, including such areas as health insurance, hospital chains, orthopedics, prosthetics, medical imaging, surgical instruments, and, of course, pharmaceuticals. It's not only the mergers and acquisitions of immediate rivals, but the deals going on throughout the industry that put pressure on current players to buy now before it's too late. Health acre is still growing in profitability, and the big players are flush with cash.
