Pharma BD Deal Intelligence

Siemens AG / Diagnostic Products Corporation

2006 · Acquisition/Merger · $1.9B · Complete

WRONG BY 32 POINTS

DPC gave Siemens immunodiagnostics scale, but the diagnostics roll-up it anchored took a €1.4B impairment and never became the growth engine promised.

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The coverage arc

Apr 27, 2006 BioSpace Neutral

BioSpace highlighted DPC's IMMULITE franchise and 100-country footprint as the platform foundation Siemens needed to enter immunodiagnostics against Roche and…

Apr 27, 2006 Siemens / DPC Joint Press Release (SEC filed) Bullish

Siemens agreed to acquire DPC at $58.50/share cash (~$1.86B) to enter in vitro diagnostics with the IMMULITE immunoassay platform.

Apr 30, 2006 Los Angeles Business Journal Neutral

Siemens offered $58.50 per share, a 21% premium over the previous trading day; Diagnostic Products shares jumped 19% to $57.81. The purchase gives Siemens an…

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Siemens acquired Diagnostic Products Corporation for $58.50 per share in cash, approximately $1.86 billion (a roughly 21% premium), to enter the in vitro diagnostics market via DPC's IMMULITE immunoassay platform and 100-country commercial footprint. The deal gave Siemens an immediate foothold in immunodiagnostics against incumbents Roche and Abbott and was paired months later with Siemens' acquisition of Bayer Diagnostics to build an integrated diagnostics business.

Did it work? Outcome assessment

DPC gave Siemens immunodiagnostics scale, but the diagnostics roll-up it anchored took a €1.4B impairment and never became the growth engine promised.

Strategic verdict
Partially Achieved

Key facts

Related deals — scored

DealYearValueOutcome
Siemens AG / Diagnostic Products Corporation (this deal)2006$1.9B48
Siemens AG / Bayer Diagnostics2006$5.4B38
Eli Lilly and Company / ICOS Corporation2006$2.3B87
Crucell N.V. / Berna Biotech AG2006$450M85
Lonza Group AG / Cambrex Bioproducts and Biopharma businesses2006$460M83
Reckitt Benckiser plc / Boots Healthcare International2006$3.4B82
Genentech, Inc. (Roche Group) / Tanox Inc.2006$919M80

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