New Directions

Originally Published MX July/August 2006

BUSINESS NEWS

Following its sixth successive quarterly loss, Eastman Kodak Co. (Rochester, NY) announced that it is exploring strategic alternatives for its $2.7 billion healthcare division, Kodak Health Group. Kodak chairman and CEO Antonio M. Perez acknowledged that sale of the health unit was an option, but also said that the company might pursue a partnership.

In May, the Advanced Laboratory Diagnostics Act of 2006 was introduced in the U.S. House of Representatives. Among other provisions, the legislation would establish a demonstration project to evaluate a new Medicare payment system for molecular diagnostic tests designed to more appropriately reflect the value of such technologies.

Siemens AG (Erlangen, Germany) has agreed to the $1.86 billion purchase of Diagnostic Products Corp. (DPC; Los Angeles). The purchase will broaden the portfolio of its medical unit, Siemens Medical Solutions (Malvern, PA), by adding DPC's diagnostic tests for such conditions as adrenal and pituitary dysfunction, allergies, anemia, bone metabolism disturbances, cancer, cardiovascular disease, diabetes, and reproductive and thyroid disorders.

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