Samsung Electronics is selling its medical equipment company to Japan. Jun Dong-soo, head of Samsung Electronics’ medical device unit and CEO of Samsung Medison, reportedly told his employees at a briefing on Wednesday on the sales of in vitro diagnostics (IVD) business.
“We’re in the process of reviewing transferring our IVD business to a Japanese company specializing in IVD devices,” Samsung Electronics said. “We’re planning to focus on diagnostic medical imaging as the synergistic effect between IVD devices and our business is limited.” The IVD are medical devices that help diagnose diseases using blood samples. Samsung’s IVD business accounts for 15 percent of the total revenue of its medical device unit. The South Korean tech giant manufactures diagnostic medical imaging devices, such as X-rays, CT scans, and MRIs, as well as IVD device.
“There is a difference in characteristics between diagnostic medical imaging devices and IVD devices in that the former such as ultrasound and X-ray is more like electronic devices and has great synergy with electronic business while IVD the latter is more like medical devices,” an industry official said.
The two companies have already agreed on the retention of 100 employees of the IVD department, and currently there are about 800 employees at Samsung’s medical device unit. Samsung Electronics is likely to separate the medical device unit from the company first and then sell it to the Japanese company just like it did with its printer business to Hewlett-Packard last year.
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