Although much smaller in scale, General Electric Co. 's $9.4 billion acquisition of Amersham PLC [See Deal] early last year is every bit as radical in its space as Johnson & Johnson 's $25.4 billion acquisition of Guidant Corp. is in the cardiovascular world. [See Deal] And while J&J's move highlights the decades-long consolidation movement in major medical device sectors, GE's actions illustrate another key trend: convergence. The Amersham purchase--now GE Healthcare 's division GE Healthcare Bio-Sciences Inc. --puts the imaging giant for first time in the life sciences industry and has a systems-oriented, engineering company talking about intangible, biology-focused strategies like personalized medicine.
Many analysts dismiss GE's emphasis on personalized medicine, noting that it is a concept, not a business. (See "GE's Personalized...