Basel, 2 July 2013
Roche Diagnostics has acquired Constitution Medical Inc.
Strengthening Roche's commitment to hematology testing
Roche (SIX: RO, ROG; OTCQX: RHHBY) announced today that it has acquired Constitution Medical Investors, Inc. (CMI), based in Boston Massachusetts (USA). CMI is the developer of a highly innovative hematology testing system, which is designed to provide faster and more accurate diagnosis of blood-related diseases, thereby improving patient care. CMI was created and funded by the private equity firm Warburg Pincus and members of CMI’s management team. Under the terms of the agreement, Roche will pay CMI shareholders USD 220 million upfront, as well as further contingent payments depending on the achievement of certain milestones. CMI will serve as a center of excellence in the field of hematology within Roche Diagnostics.
“With this acquisition, we will further strengthen our commitment to hematology and drive towards integrated laboratory solutions with innovative products which deliver medical value to our customers and patients. Patients will benefit from faster and more accurate diagnosis of blood diseases such as anemia and leukemia”, says Roland Diggelmann, COO of Roche’s Diagnostics. “We are happy to welcome CMI’s employees, a very talented group of people with strong expertise and domain knowledge in the field of hematology, to the Roche Group”, he adds.
The BloodhoundTM technology is the core of a fully-automated system in development with the capability to increase efficiency and save laboratory space by replacing several workstations with a single, compact unit.
“We are very excited about the prospect of continuing our successful development as part of the Roche Group and bringing our technology to medical laboratories in the service of patients on a global scale”, said Patrick Sullivan, Chairman and CEO of CMI.
The new hematology capabilities will support Roche’s growth and strengthen its competitive position in the laboratory hematology testing business, which has an estimated global market size of more than USD 2.0 billion (2011).
Constitution Medical Investors, Inc. (CMI), founded by former Cytyc Corporation executives Patrick Sullivan and Daniel Levangie, s a Boston, Massachusetts (USA)-based developer of innovative laboratory products. The senior management team of CMI brings with them a wealth of experience in the development of innovative new technologies. CMI is funded by Warburg Pincus and members of management.
Headquartered in Basel, Switzerland, Roche is a leader in research-focused healthcare with combined strengths in pharmaceuticals and diagnostics. Roche is the world’s largest biotech company, with truly differentiated medicines in oncology, infectious diseases, inflammation, metabolism and neuroscience. Roche is also the world leader in in vitro diagnostics and tissue-based cancer diagnostics, and a frontrunner in diabetes management. Roche’s personalized healthcare strategy aims at providing medicines and diagnostic tools that enable tangible improvements in the health, quality of life and survival of patients. In 2012 Roche had over 82,000 employees worldwide and invested over 8 billion Swiss francs in R&D. The Group posted sales of 45.5 billion Swiss francs. Genentech, in the United States, is a wholly owned member of the Roche Group. Roche is the majority shareholder in Chugai Pharmaceutical, Japan. For more information, please visit www.roche.com.
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1) The system based on the BloodhoundTM technology is currently in development and not yet available in the market.