Company Acquisitions
Mergers Strengthen the Strong
Since the beginning of March, three medical organizations have grown through acquisitions: Dynacare Inc. purchased LabSouth, Inc.; DuPont Pharmaceuticals Company formed an alliance with Aventis SA; and medibuy.com acquired the e-commerce company Premier Health Exchange (PHX).
Dynacare Inc.'s acquisition of Alabama's LabSouth, Inc. puts the Toronto-based company in the lead in the medical diagnostic laboratory service industry in the Southern United States. With operations in 17 states and two Canadian provinces, Dynacare Inc. now includes 15 laboratories conducting over 22 million tests a year.
The DuPont Pharmaceuticals alliance with Aventis SA gives DuPont a research center in Romainville, France, plus access to the approximately 1,000 scientists working on 30 developmental drugs in that facility. Executives claim the merger will increase drug sales by 15% and double their European market presence, something DuPont hopes to build upon. Chairman and chief executive officer of Dupont Pharmaceutical, Kurt Landgraf, commented the "alliance is the first step in Dupont Pharmaceuticals' progressive growth strategy."
As a result of the medibuy.com and PHX merger, medibuy.com gains access to Premier's 1,800-member hospitals for six years. Medibuy.com, a San Diego-based Internet host for the sale and purchase of medical products and services, becomes the exclusive e-commerce infrastructure provider for those hospitals' acute-care group purchasing programs.
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