Bayer sells Diabetes Care business to Panasonic Healthcare

Pharmaceutical giant Bayer has struck a €1 billion deal to offload its Diabetes Care business to Panasonic Healthcare. The deal is expected to complete in early 2016.
“Bayer has entered into a definitive agreement to sell its Diabetes Care business to Panasonic Healthcare Holdings,” said a statement by Bayer.
Diabetes Care produces a range of diabetes products, including Contour blood glucose meters and test strips. Last year it recorded sales of €909 million.
Panasonic Healthcare, which also produces glucose meters and test strips through the In Vitro Diagnostics business, has stated its intention to use the newly purchased Diabetes Care to produce affordable blood glucose meters, in a market with declining prices.
“We are confident that the sale of our Diabetes Care business to our long-standing partner Panasonic Healthcare, […] will support the long-term sustainability of this portfolio,” said Werner Bauman, chief executive of Bayer HealthCare.
Michael Kloss, Global Head of Bayer Diabetes Care, added: “This ground-breaking agreement of two strong leaders in manufacturing and marketing diabetes care products […] will create a large global business fully committed to investing in innovative solutions that will help improve the lives of diabetes care patients.”
Kenji Yamane, president of Panasonic Healthcare, said: “For more than 20 years, our companies have shared complementary goals. We anticipate that this partnership will take our two great businesses to new heights, and we wholly welcome the BDC team as full partners to Panasonic Healthcare.”