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Roche Diagnostics and Sysmex Sign Asset Purchase Agreement
Begins Transfer of Hematology Business back to Sysmex in
the United States
INDIANAPOLIS, Ind. and LONG GROVE, Ill. - Roche Diagnostics Corporation
of Indianapolis, Ind. and Sysmex Corporation of America, of Long
Grove, Ill., today jointly announced that both parties have signed
an Asset Purchase Agreement enumerating the key terms of a transfer
of Roche's U.S. Hematology Business Unit back to Sysmex.
This agreement accelerates the expiration of an original Distributorship,
Sales and Service (DSS) agreement that began in February, 1999,
and was due to expire in 2004. Agreements for Roche's distribution
of Sysmex hematology outside the United States remain unchanged.
Sysmex Corporation of America, will also continue its strong supply
and distribution relationship with Roche Diagnostics throughout
Latin America and Canada.
"Roche and Sysmex have enjoyed a good business relationship
and progress has been made to gain market share in the very competitive
hematology business. Although hematology is an element in the diagnostics
market, it was decided that both Roche and Sysmex would achieve
greater success and profitability by focusing on their respective
strengths. Therefore, both parties agree that for business reasons,
it is best that the business be transitioned back to Sysmex,"
said Martin Madaus, Roche Diagnostics President and CEO.
Kazuya Obe, Sysmex Chairman and CEO, added "This is a win
for all parties, especially our customers. After many successes,
including an increase in market share, we have mutually agreed to
focus on our respective core competencies. We will continue to pursue
the U.S. hematology market, bringing the unique advantages of Sysmex
instrumentation to the benefit of laboratories and patients throughout
the states.
"This pending move is in line with Roche's strategy to increase
our focus on the tremendous growth opportunities we have in diabetes,
molecular diagnostics, immunochemistry and chemistry. The high growth
rate we are experiencing in these core businesses will drive even
more sales growth and improve profitability." Madaus added.
"Sysmex is increasing our investments in the United States
which will result in profitable market share growth," Obe added.
"Sysmex's core competencies and investments in diagnostics,
including hematology, urinalysis and information solutions have
resulted in a product portfolio that uniquely addresses not only
clinical performance and efficiency, but integration of systems
as well."
Sysmex is currently expanding its operation by increasing hiring
and continuing its planned move to larger headquarters. Sysmex will
re-assume direct responsibility for customer sales, service, support,
contracts, and operational functions. Many current Roche employees
who are directly involved with the hematology business function,
including positions in sales, service, support, contracts, and operations,
will be considered for employment from Sysmex to provide a smooth
transition for their hematology customers. Representatives from
Roche and Sysmex agreed that the affected employees are a key priority
and both parties agreed to provide assistance during the planned
transition.
About Roche and the Roche Diagnostics Division
Headquartered in Basel, Switzerland, Roche is an innovation-driven
global healthcare leader focused on pharmaceuticals and diagnostics.
Roche is number one worldwide in diagnostics, oncology and transplantation
and has a leading position in virology. With products and services
that address the prevention, diagnosis and treatment of diseases,
the company contributes broadly to the enhancement of people's health
and quality of life. Roche employs approximately 62,000 people in
more than 150 countries around the world. The company has business
alliances and R&D relationships with numerous partners, including
majority ownership interests in Genentech and Chugai, which are
both members of the Roche Group. Roche's Diagnostics Division, the
world leader in in-vitro diagnostics with a uniquely broad product
portfolio, supplies a wide array of innovative testing products
and services to researchers, physicians, patients, hospitals and
laboratories worldwide. For further information, please visit our
websites www.roche.com
and www.roche-diagnostics.com.
About Sysmex Corporation
Headquartered in Kobe, Japan, Sysmex developed its first automated
hematology analyzer in 1963 when it was known as TOA Medical Electronics
CO., Ltd.. To reflect its commitment to the IVD market, Sysmex Corporation
was formed, and 2003 marks its 35th year. Since its inception, the
company has focused on developing, manufacturing and selling advanced,
state-of-the-art in vitro diagnostic instruments, reagents, laboratory
automation systems and information technology for the clinical laboratory.
Well-known for reliable products and services, it has produced dozens
of firsts in the field by continuously supporting many research
and development programs. For example, current research programs
have produced rapid, genomic-based diagnosis for metastatic cancer
of the lymph nodes.
Sysmex is one of the top global leaders in IVD, reporting a 22.5%
increase in sales from years 2001 to 2002. The company has 31 subsidiaries
plus 27 affiliate companies worldwide, providing products and services
in more than 150 countries. It has business alliances and R&D
relationships with numerous partners, including Roche's Diagnostics
Division, the world leader in in-vitro diagnostics. For further
information, please visit our websites www.sysmex.com
and www.sysmex.com/usa.
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