General Electric Co. completed its $9.5 billion acquisition of Amersham, marrying the biochemical expertise of Amersham with the engineering expertise of the former General Electric Medical Systems. The combined business, now known as GE Healthcare, is expected to ring up $14 billion in sales this year and $16 billion in 2005. Former Amersham Chief Executive Sir William Castell heads the new business as president and chief executive officer, headquartered in London. Joseph Hogan, who was president and CEO of GEMS, takes on the new title of president and CEO of GE Healthcare Technologies, an $11 billion division of GE Healthcare that includes GE's existing portfolio of medical imaging and information technologies. The new company employs 43,000 and has earmarked $1 billion for research and development, Hogan said. The deal is designed to give GE a strong position in the budding and promising arena of molecular imaging, a technology for peeking into cells for early traces of disease. Though GE Healthcare will remain firmly rooted in diagnostics, the acquisition of the life sciences and imaging agents company Amersham brings GE closer to pharmaceuticals "from a collaborative standpoint," Hogan told Modern Healthcare. "There's a lot of opportunity for creative, early diagnostics around molecular imaging," he said. -- by Cinda Becker
GE acquires biochemical company for $9.5 billion
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