Varian, Inc. Acquires Product Line for Drugs of Abuse Testing from Roche Diagnostics Corporation


Varian, Inc. announced that it has acquired the non-clinical drugs of abuse testing (DAT) business of Roche Diagnostics Corporation for approximately $22 million in cash. The DAT business specializes in on-site, single-use, products for rapidly detecting drugs of abuse in human bodily fluids. Primary applications for the DAT products are in the workplace setting for pre-employment screening and "fitness for duty" tests, and in the criminal justice arena for compliance monitoring programs. Roche is a leader in the non-clinical DAT product sales. It is retaining one strip-based DAT product, the TesTcard(TM) 9, sold to clinical laboratories, as well as its line of reagents designed for rapid instrument-based drug testing.

Varian, Inc., through its 2002 acquisition of ANSYS Technologies, Inc., has been the contract manufacturer of the two primary Roche DAT product lines, the OnTrak(TM) TesTcup(TM) and OnTrak TesTstik(TM), and the companies also collaborated on product design and development since the inception of the product line in the early 1990's.

"The Roche DAT acquisition furthers Varian, Inc.'s strategic goal of expanding our line of consumable products," says Garry W. Rogerson, President and Chief Operating Officer. "Varian, Inc. has been a leader in both instrumentation and consumables for drugs of abuse confirmatory testing, and this acquisition enhances our ability to serve customers worldwide with a more complete solution to their drug testing needs. This purchase positions Varian, Inc. as an industry leader in providing both rapid screening and equipment and consumables for confirmatory tests to the large drug testing laboratories."

Organizationally, Varian, Inc. will manage the business within the consumables portion of its Scientific Instruments segment, with the DAT business retaining its own separate sales, marketing, and R&D functions. "We are committed to a seamless transition for our DAT customers," said Rogerson. "They should experience little, if any, change in the products or in the people that they are used to working with, since Varian, Inc. (through ANSYS Technologies, Inc.) has been involved in the product line since its beginnings."

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