Panasonic Healthcare Holdings of Japan said that it had agreed to acquire the German drug maker Bayer's diabetes care business.
Bayer Diabetes Care (BDC), has marketed and sold products manufactured by Panasonic Healthcare for decades and is the exclusive sales and distribution partner for Panasonic's Contour Next line of products.
Panasonic Healthcare, which was spun off from the Panasonic Corporation in 2014 and is based in Toyko, is 80 percent owned by the private equity firm Kohlberg Kravis Roberts and 20 percent owned by Panasonic.
"Since first taking steps to becoming an independent health care company from Panasonic Corporation through KKR's investment, it has been our key management objective to form strong partnerships with strategically pivotal companies," said Kenji Yamane, President of Panasonic Healthcare. "For more than 20 years, BDC has been our flagship partnership with whom we share complementary goals," he said.
To accommodate the increasing incidence of diabetes, many country healthcare providers have instituted price reduction programs for diabetes care products. This has contributed to an increase in the volume of diabetes care products in the market at lower prices. BDC and PHCHD together look forward to scaling their capabilities to continue providing top-quality and cost-competitive products to patients in need