Sony is reported to be on the verge of a deal with US-based human genome equipment maker Illumina Inc. The joint operation will conduct genome information analysis aimed at drug companies in Japan. The move marks Sony’s latest initiative to find new growth and achieve fiscal targets as the company looks to diversify its portfolio beyond the highly competitive electronics market.Illumina Inc. is a US-based firm operating in life science tools, specialising in analysis of genetic variation and function. Stock prices have risen since the reports first came out.

The move seems likely to go ahead given Sony identified medical as a new key area at a corporate strategy meeting in May.

New growth in medical

This is the second initiative by Sony this year to expand into healthcare. In April Sony and Olympus completed their proposed medical venture, designed to merge design and manufacturing of medical equipment for hospitals. Sony Olympus Medical Solutions was initially announced back in October 2012 but was held up by regulatory approval.

The 67-year-old Japanese company has been undertaking aggressive moves under CEO Kaz Hirai’s leadership to rejuvenate the company after some troubling fiscal years. The TV-producing unit has suffered losses for eight consecutive years and the PC business is slowing in line with the market adoption of tablets.

Sony is not the corporation that it was ten years ago, then overly reliant on highly successful electronics products such as the PlayStation and Bravia television lines. More recently it has seen significant growth after buying out Ericsson in its mobile communications joint venture and it would come as a surprise to some that its most profitable area of business today is financial services.

Discuss:

Should Sony corp focus on electronics instead or is their diversification a necessary one?