Isabella Carter
In July 2013, Roche Diagnostics acquired the Boston-based blood diagnostics company Constitution Medical Inc. for $220 million. Roche announced that it would pay shareholders of CMI, a hematology testing firm, $220 million, with additional payments subject to various milestones. The acquisition aimed to enhance Roche Diagnostics with CMI's technology, specifically its Bloodhound diagnostic device, which can identify blood diseases with a single system.
| Characteristics | Values |
|---|---|
| Date of acquisition | July 2013 |
| Acquirer | Roche Diagnostics |
| Acquired company | Constitution Medical Inc. |
| Type of acquired company | Blood diagnostics company |
| Location of acquired company | Boston, Massachusetts |
| Deal value | $220 million |
| Additional payments | Possible milestone payments |
| Acquired technology | "The Bloodhound" |
| Purpose of acquisition | Beef up diagnostics arm |
Explore related products
What You'll Learn
Roche acquired Constitution Medical Inc. for $220 million
Roche has a long history of acquiring companies, including Biomedical Reference Laboratories in 1982, BioImagene, Inc. in 2010, and Constitution Medical Inc. in 2012 or 2013. Roche Diagnostics, a division of the company, acquired the Boston-based blood diagnostics company Constitution Medical Inc. (CMI) for $220 million.
CMI is a medical device company that developed "The Bloodhound," a diagnostic device that can identify blood diseases—from anemia to leukemia—with a single system that replaces the multiple diagnostic tools currently used in hospitals. The acquisition of CMI allowed Roche to strengthen its diagnostics arm, Roche Diagnostics, and further its reach in the medical technology space.
The deal included a payment of $220 million to shareholders of CMI, with additional payments subject to various milestones. At the time of the acquisition, CMI had 39 employees, and its CEO, Patrick Sullivan, expressed excitement about the prospect of continuing their successful development as part of the Roche Group.
This acquisition aligns with Roche's strategy to enhance its capabilities in the healthcare industry and expand its global presence. With a presence in pharmaceuticals and diagnostics, Roche continues to seek opportunities to innovate and grow through strategic acquisitions.
Supreme Court: Non-Citizens' Constitutional Rights
You may want to see also
The acquisition included payments subject to milestones
In July 2013, Roche Diagnostics, a Swiss company, acquired blood diagnostics company Constitution Medical Inc. for $220 million, with additional payments subject to milestones. Roche intended to enhance its diagnostics arm, Roche Diagnostics, with CMI's technology and announced plans to open a Center of Excellence in Hematology at CMI's Boston location. CMI's Bloodhound diagnostic device can identify blood diseases, from anaemia to leukaemia, with a single system that replaces the multiple diagnostic tools currently used in hospitals. The acquisition of CMI, a hematology testing firm, was a deal worth at least $220 million, with Roche agreeing to pay shareholders of CMI $220 million, plus possible milestones. The technology acquired in this deal, called "The Bloodhound", provides faster and more accurate diagnoses of blood-related diseases, replacing several pieces of traditional laboratory equipment with a single, smaller unit.
The Constitution: Amendments and Their Impact
You may want to see also
The deal was intended to strengthen Roche Diagnostics
Roche is a Swiss company with two major divisions: Pharmaceuticals and Diagnostics. Roche Diagnostics, a division of the company, manufactures diagnostic equipment and reagents for research and medical diagnostic applications. In July 2013, Roche Diagnostics acquired the Boston-based blood diagnostics company, Constitution Medical Inc. (CMI), for $220 million.
The acquisition of CMI was intended to strengthen Roche Diagnostics by adding CMI's technology to its diagnostics arm. CMI's Bloodhound diagnostic device can identify blood diseases, from anemia to leukemia, with a single system that replaces the multiple diagnostic tools currently used in hospitals. This technology was expected to provide faster and more accurate diagnoses of blood-related diseases. The deal also included plans to open a Center for Excellence in Hematology at CMI's Boston location, which would further enhance Roche Diagnostics' capabilities.
The acquisition of CMI was part of Roche's strategy to expand its presence in the United States, a crucial market for the company, generating nearly 48% of its sales in 2024. In recent years, Roche has made significant investments in the United States, including expanding its manufacturing and distribution centers and acquiring multiple companies based in the country.
Roche's focus on strengthening its diagnostics division through acquisitions and investments aligns with its goal to improve the efficacy and safety of medicines. By combining its strengths with innovative technologies, such as CMI's Bloodhound device, Roche can enhance its diagnostic capabilities and maintain its competitiveness in the dynamic market environment.
The deal with CMI also demonstrated Roche's commitment to its employees and the medical community. The company assured that there were no plans to decrease the headcount in Boston, indicating its recognition of the talent and expertise within CMI's team. This approach aligns with Roche's overall strategy of investing in its employees and infrastructure to drive innovation and growth.
Congress's Impeachment Powers: Exploring Constitutional Roots
You may want to see also
Explore related products
Constitution Medical Inc. was a blood diagnostics company
In July 2013, Roche Diagnostics, a Swiss company, acquired blood diagnostics company Constitution Medical Inc. for $220 million. Roche paid $220 million to the shareholders of CMI, a Boston-based hematology testing firm, with additional payments subject to various milestones.
Roche Diagnostics intended to strengthen its diagnostics arm with the acquisition of CMI's technology. The company announced plans to open a Center for Excellence in Hematology at CMI's Boston location. Patrick Sullivan, CEO of CMI, expressed excitement about the prospect of continuing their successful development as part of the Roche Group and bringing their technology to medical laboratories worldwide.
Roche Diagnostics is one of the two major divisions of Roche, the other being Pharmaceuticals. Roche Diagnostics manufactures diagnostic equipment and reagents for research and medical diagnostic applications. It is internally organized into five major business areas: Roche Applied Science, Roche Professional Diagnostics, Roche Diabetes Care, Roche Molecular Diagnostics, and Roche Tissue Diagnostics (Ventana). The main location for Roche Professional Diagnostics is in Rotkreuz, Switzerland.
America's Pre-Constitution War Declarations
You may want to see also
The company was based in Boston, Massachusetts
In July 2013, Roche Diagnostics, a Swiss company, acquired the Boston, Massachusetts-based medical device company, Constitution Medical Inc. (CMI), for $220 million plus possible milestones. CMI was founded in 2008 based on a partnership with the investment firm Warburg Pincus.
CMI is a hematology testing firm that developed "The Bloodhound," a diagnostic device that can identify blood diseases—from anemia to leukemia—with a single system that replaces the multiple diagnostic tools currently used in hospitals. The company is also developing a permanent birth control system.
Roche Diagnostics intended to beef up its diagnostics arm with CMI's technology and announced plans to open a Center for Excellence in Hematology at CMI's Boston location. A Roche representative stated that there were "no plans to decrease the headcount in Boston," referring to CMI's 39 employees at the time of the acquisition.
Patrick Sullivan, CEO of CMI, expressed excitement about the prospect of continuing their successful development as part of the Roche Group and bringing their technology to medical laboratories globally. This acquisition by Roche demonstrates its interest in expanding its presence and capabilities in the United States, particularly in the field of diagnostics.
Interpreting Liberty and Freedom in the Constitution
You may want to see also
Frequently asked questions
Roche paid $220 million for Constitution Medical Investors Inc. in total. However, it is not clear how much was paid per share.
Constitution Medical Inc. is a Boston-based medical device company that was founded in 2008.
Roche acquired Constitution Medical to beef up its diagnostics arm, Roche Diagnostics, with CMI's technology.
