Sector News

Abbott plunges deeper into diagnostics with $5.8bn Alere buy

February 2, 2016
Life sciences

Abbott is delving deeper into diagnostics with a definitive deal to buy test-maker Alere for around $5.8 billion.

Alere’s portfolio of products provides Abbott with access to new channels and geographies, including entry into fast-growing outlets, such as doctors’ offices, clinics, pharmacies and at-home testing, the firm noted.

The US drug giant said the move will see it become the leading diagnostics provider of point of care testing, with total diagnostics sales overshooting $7 billion after the transaction closes.

The move is expected to be immediately accretive to Abbott’s ongoing earnings per share upon close and significantly accretive thereafter, with around 12-13 cents added in 2017 and more than 20 cents in 2018. The combination is also expected to generate annual pre-tax synergies near $500 million by 2019 and increasing thereafter.

“The combination of Alere and Abbott will create the world’s premier point of care testing business and significantly strengthen and grow Abbott’s diagnostics presence,” said Miles White, Abott’s chairman and chief executive. “We want to offer our customers the best and broadest diagnostics solutions. Alere helps us do that.”

News of the deal comes shortly after Abbott posted a 15% drop in profit for the fourth quarter of the year, largely because of exchange rate effects.

By Selina McKee

Source: Pharma Times

Related News

March 6, 2021

Roche is gearing up to knock down an Irish plant—and it’s complicated

Life sciences

Unable to sell its plant in Clarecastle, Ireland, Roche will take a wrecking ball to the facility in June. It won’t be a simple process. In fact, a timeline of June 2021 to May 2028 has been listed for the project.

February 28, 2021

UCB taps Microsoft to accelerate drug discovery, clinical trials

Life sciences

The deal will see Microsoft use its capabilities in computational services, cloud computing and artificial intelligence to support drug discovery and development at UCB.

February 28, 2021

GSK to close two UK antibiotics manufacturing sites

Life sciences

The planned closures come as GSK has agreed to sell its cephalosporins antibiotics business to Sandoz, a division of Swiss pharma firm Novartis, for as much as US$500m.

Send this to a friend