Roche dishes out $220M for Constitution Medical Investors

July 8, 2013 by Sony Salzman

Roche buys Boston-based medical device company Constitution Medical Investors for $220M plus milestones.

Roche dishes out $220M for Constitution Medical Investors

Biotech titan Roche acquired Boston, Mass.-based medical device company Constitutional Medical Investors for a reported $220 million plus possible milestones.

The Swiss company intends to beef up its diagnostics arm, Roche Diagnostics (PINK:RHHBY), with CMI's technology and announced plans to open a Center for Excellence in Hematology at CMI's Boston location.

CMI's Bloodhound diagnostic device can identify blood diseases – from anemia to leukemia – with a single system that replaces the multiple diagnostic tools currently used in hospitals. The company is also developing a permanent birth control system.

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A Roche representative told Mass High Tech that there are "no plans to decrease head count in Boston," referring to CMI's current 39 employees.

"We are very excited about the prospect of continuing our successful development as part of the Roche Group and bringing our technology to medical laboratories in the service of patients on a global scale," Patrick Sullivan, CEO of CMI, said in prepared remarks.

The company was founded in 2008 based on a partnership with investment firm Warburg Pincus. Roche did not reveal how current executive roles will be reassigned under the new ownership structure.