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Inverness Strengthens Its Hand; Cygnus Plays a Card

Executive Summary

Inverness Medical Technology's purchase of struggling diabetes testing start-up LXN fits well with the larger company'stwo-pronged strategy of cementing its relationship with J&J's LifeScan Inc. business unit and diversifying into emerging areas of diabetes testing. Inverness also announced that the partners have amended their distribution and marketing agreement to give LifeScan bigger discounts on meters in return for bigger purchase orders.
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