Renewed Alere Acquisition Sends 455 Million Test Procedures to Abbott: Kalorama Report

ROCKVILLE, Md., May 8, 2017 /PRNewswire/ -- Abbott and Alere announcement last month that they had agreed to amend  terms and continue with their acquisition plan will increase Abbott's entrée in POC and emerging markets, but it will also add to the sheer number of tests run using Abbott-owned IVD equipment, according to Kalorama Information.  Kalorama Information, a New York City-based healthcare market research firm estimates that Alere's equipment was used in 455 million test procedures last year, adding to Abbot's own total of 3.1 billion test procedures in which its equipment was used.   By comparison, Kalorama said, 21 billion test procedures were completed globally in 2016.   Though the firm said most common global procedures are clinical chemistry procedures, and the types of procedures Alere brings tend to be of higher margin.  Test volume shares of  each major IVD is broken out in Kalorama report Worldwide Market for In Vitro Diagnostics 2017: IVD Test Volumes and Pricing Analysis.

"One way to look at this is buying volume," said Bruce Carlson, Publisher of Kalorama Information.   "Alere is present already in markets and clinical procedures where Abbott would otherwise have to fight its way in.  They are going to boost their point-of-care procedure count by more than sixty-percent, for instance."

Alere specializes in the development and manufacture of IVD products for professional point-of-care (POC) markets.  The company also supplies home pregnancy and fertility/ovulation tests through Swiss Precision Diagnostics, a joint venture with Procter & Gamble.  Manufacturing and/or marketing operations for Alere are conducted in North and South America, Europe, the Africa/Mideast region, and the Asia/Pacific region.  In 2016, the company generated global IVD product sales of $2.35 billion, about half of which were recorded in the US.  The company employs approximately 9,000 workers.   All of Alere's procedure volume is in the point-of-care diagnostics market, according to Kalorama Information, which will add to POC procedures using Abbott equipment, which Kalorama Information  currently estimates at 733 million procedures (post merger, Abbott's POC procedures will exceed one billion).   

 In October 2016, Alere announced that its shareholders had approved the merger.   However, following the February 2016 announcement of the acquisition agreement, Alere experienced several major setbacks. In addition, Alere filed its Form 10-K for 2015 late and in March 2017, Alere received a notice from the New York Stock Exchange (the "NYSE") that the Company is not in compliance with the NYSE's continued listing requirements under the timely filing criteria. In August 2016, Alere filed a complaint against Abbott, seeking to compel Abbott to fulfill its obligations under the terms of the merger agreement.  Later in the year, Abbott announced that it had filed a complaint to terminate its proposed acquisition of Alere based on the substantial loss in Alere's value following the merger agreement.   With the April 2017 announcement that the companies had agreed to amend the terms of the acquisition, Abbott and Alere are again moving forward. Their press release reported that the transaction is expected to close by the end of the third quarter of 2017, subject to the approval of Alere shareholders and the satisfaction of customary closing conditions, including applicable regulatory approvals. Abbott and Alere also agreed to dismiss their respective lawsuits. 

While well short of IVD leader Roche, Kalorama the renewed merger creates space between Abbott and its two rivals Danaher and Siemens Healthineers in the IVD market.     

Kalorama Information's Worldwide Market for In Vitro Diagnostics 2017: IVD Test Volumes and Pricing Analysis has projected test volumes, including share of volumes for all major companies. The report can be found at: https://www.kaloramainformation.com/Worldwide-IVD-Procedure-10743219/.

About Kalorama Information

Kalorama Information, a division of MarketResearch.com, supplies the latest in independent medical market research in diagnostics, biotech, pharmaceuticals, medical devices and healthcare; as well as a full range of custom research services. Reports can be purchased through Kalorama's website and are also available on www.marketresearch.com and www.profound.com.

We routinely assist the media with healthcare topics. Follow us on Twitter, LinkedIn and our blog on our company website.  

Please link any media or news references to our reports or data to http://www.kaloramainformation.com/.

Press Contact:                                                         
Bruce Carlson
212 807 2262                                                           
[email protected]

SOURCE Kalorama Information

Related Links

http://www.kaloramainformation.com

WANT YOUR COMPANY'S NEWS FEATURED ON PRNEWSWIRE.COM?

440k+
Newsrooms &
Influencers

9k+
Digital Media
Outlets

270k+
Journalists
Opted In

GET STARTED