GE reported close to buying Abbott unit |
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Thu, 18 Jan 2007 17:21
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FAIRFIELD, Conn. (AFX) - General Electric Co. was close to buying the diagnostics division of Abbott Laboratories, The Wall Street Journal reported Wednesday, citing people familiar with the matter.The deal would broaden GE's $16 billion health care business, which has moved into health care information technology and molecular diagnostics in the past few years.The report said details about GE's plans were unavailable and it was possible the conglomerate would purchase a large part of the Abbott unit rather than all of it.Gary Sheffer, a spokesman for Fairfield-based GE, declined to comment Wednesday evening. Melissa Brotz, a spokeswoman for Abbott, declined to comment Thursday.GE is selling off slower-growth businesses such as insurance and plastics and focusing on faster-growth areas such as energy, oil and gas equipment, rail engines, health care technology, finance and water processing technology.GE's primary health care business is manufacturing diagnostic equipment, including ultrasound and X-ray machines and screening equipment. The company entered the molecular diagnostic market when it paid more than $9 billion in 2004 for Britain's Amersham, a bioscience and medical diagnostic firm.GE is developing molecular agents that target specific diseases when they are injected into the blood stream. The agents show up during screenings indicating that a patient has a particular cancer or disease.Diagnostics related to breast cancer has been a key focus of GE.Within the past year, Chicago-based Abbott acquired Guidant's vascular wing for $4.1 billion and Kos Pharmaceuticals for $3.7 billion. It spun off low-growth hospital products unit Hospira in 2004.In the same year, it increased the glucose-monitoring side of the diagnostics business with a $1.2 billion deal for TheraSense.Copyright 2006 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
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GE nearing deal to buy diagnostics arm of Abbott Laboratories - report 