Will All the Abbott-Alere Fuss Be Worth It?

For better or for worse, Abbott and Alere are expected to officially tie the knot today. Alere tied up several loose ends late last week to close the $5.3 billion deal that once seemed doomed. The company settled a Department of Justice investigation related to its triage cardiac and toxicology products, and the FTC said it would OK the transaction, provided that Alere sells its blood gas and cardiac marker testing systems, along with related facility divestitures. Earlier this year the companies were going toe-to-toe over the initial $5.8 billion merger agreement. Abbott got cold feet after a series of revelations that included the DOJ investigation and the delayed filing of Alere’s annual financial statements. Alere said the total combined payment to the DOJ and the participating states will be within the $35 million loss contingency reserve previously taken by the company. Despite their rocky relationship, there are still upsides to the acquisition for Abbott. The company will now have a leading position in point-of-care testing, a fast-growing $7 billion segment of the $50 billion in vitro diagnostics market. Brian Blaser, executive vice president of diagnostics products at Abbott, said the combination gives the company the broadest point-of-care testing portfolio and will help Abbott meet the growing demand for fast, accurate, and actionable information. The company noted that many healthcare systems are upping their reliance on these technologies to inform patient car...
Source: MDDI - Category: Medical Devices Authors: Tags: Medical Device Business Source Type: news