Alere Spins Off Assets to Aid Abbott Merger

Alere Spins Off Assets to Aid Abbott Merger

Since February 2016, we’ve followed the testy merger between Abbott (NYSE: ABT) and Alere’s (NYSE: ALR) agreement to merge, followed by the respective lawsuits, and then the price renegotiation. Half way through 2017, the $5.3 billion deal is getting closer to completion, as Alere spins off some assets to comply with antitrust regulations. The first to go is Alere’s Triage® MeterPro cardiovascular (CV) and toxicology assets (“Triage business”), together with the B-type Naturietic Peptide (BNP) assay business run on Beckman Coulter analyzers (“BNP business”). The buyer is  Quidel Corporation (NASDAQ: QDEL), which will acquire the Triage business, including real estate for the San... Read More »

Abbott and Alere: The Wedding Is Back On!

It seems so long ago. Back in February 2016,  Abbott (NYSE: ABT) and Alere Inc. (NYSE: ALR) announced their $5.8 billion deal. Abbott’s board okay’ed paying $56 per common share of Alere, representing a 51% premium to the company’s close on January 28, 2016. Abbott also assumed $2.6 billion of debt. The combination was expected to create a premier point-of-care testing business and to strengthen Abbott’s diagnostics presence. Alere’s main business is its point-of-care diagnostics and services, which are focused on the areas of infectious disease, cardio-metabolic disease, and toxicology. Point of care testing is a $5.5 billion segment, and one of the fastest... Read More »

Abbott to Alere: It’s You, Not Me

The party’s about over for the $5.8 billion Abbott (NYSE: ABT) acquisition of Alere Inc. (NYSE: ALR). Everything was bright and rosy when Abbott agreed to pay $56.00 per share for the point-of-care diagnostics and services company. Now, the $177 million termination fee Abbott faces to get out of the deal looks pretty cheap. In April, Abbott reportedly offered Alere $50 million to terminate the deal, but got no takers. The trouble began almost immediately. The day of the announcement, February 1, Alere’s stock price shot up nearly 46%, to $54.11. But later that month,  it announced would delay filing its 2015 financial results with securities regulators due to revenue recognition... Read More »

The Biggest Deals of 2016

It’s been a busy year for healthcare deal making. As of December 2, the combined total spending was $239.1 billion, going to finance 1,419 transactions. That’s 40% behind the $400 billion spent in all of 2015, but just 7% behind last year’s deal volume of 1,520 deals. Thirty-six deals of $1.0 billion or higher have been announced to date in 2016, with a current total of $184.2 billion. These deals comprise 77% of spending so far, and no doubt there will be a few more before New Year’s Eve. By comparison, 2015 ended with a combined total spending of $400.6 billion on 1,520 transactions. Fifty-two of those transactions reported spending of $1.0 billion or higher, for... Read More »

Teleflex Keeps Cardio Deals Pumping

It’s been a busy year for mergers and acquisitions in the Medical Device sector. Through December 2, 108 transactions have been announced in 2016, compared with 113 in all of 2015. Target companies specializing in cardiovascular devices make up a small percentage of those deals, but tend to post large prices. So far, $32.8 billion has been committed to three of the four transactions targeting cardiovascular products. The vast majority of that amount is the result of the $30.7 billion acquisition of St. Jude Medical (NYSE: STJ) by Abbott (NYSE: ABT), announced in April. As a result of that deal, Abbott and St. Jude agreed to sell certain vascular closure and electrophysiology assets... Read More »