Abbott Diagnostics Acquired: A Milestone in the Point-of-Care Diagnostic Space

In October 2017, Abbott Laboratories closed its acquisition of Alere Inc at a reduced price of $5.3 billion, solidifying its position as the market leader in the point-of-care diagnostic space within the broader in-vitro diagnostics market. This takeover marked a significant milestone for both companies, with Alere becoming a vital part of Abbott's portfolio.

The story began in February 2016 when Abbott announced its intention to acquire Alere Inc for $5.8 billion. However, just months later, in April 2017, Abbott requested that the deal be terminated, but this proposal was rejected by Alere's board of directors.

Alere had a rich history before its acquisition by Abbott. Founded in 1991 as SelfCare, the company went public in 1996 and changed its name to Inverness Medical Technology (IMT) in 2000. Over the years, IMT expanded its business through strategic acquisitions, including Unipath, Clondiag, Ionian Technologies, TwistDx, Wampole Laboratories, Ostex International, Binax, Biosite, HemoSense, Cholestech, Redwood Toxicology, Concateno, BBI Holdings, eScreen, Standard Diagnostics, and Axis-Shield.

In 2007, IMT entered into a joint venture with Procter & Gamble for the sales and marketing of its consumer diagnostics products. The company also won two awards in the 16th Annual National Health Information program in 2009, recognizing its excellence in consumer health information programs and materials.

Unfortunately, Alere faced challenges in the years leading up to its acquisition by Abbott. In July 2014, CEO Ron Zwanziger resigned, and COO Namal Nawana took over as interim CEO. The company's board of directors subsequently voted to take the company private for $3.82 billion in September 2014.

Despite these challenges, Alere continued to grow and expand its business. In October 2014, the company instated Namal Nawana as its permanent CEO. One year later, in February 2016, Abbott announced its intention to acquire Alere Inc for $5.8 billion.

The acquisition by Abbott was completed on October 3, 2017, at a reduced price of $5.3 billion. With this takeover, Abbott became the market leader in the point-of-care diagnostic space within the broader in-vitro diagnostics market. As of January 2017, Alere had a market capitalization of $3.47 billion and an enterprise value of $5.9 billion.

In conclusion, the acquisition of Alere Inc by Abbott Laboratories marked a significant milestone for both companies. With its expanded portfolio of point-of-care diagnostic tests, Abbott is well-positioned to continue its leadership in the industry.

Abbott diagnostics acquired