Abbott is on an acquisition spree, shelling out $5.8 billion for Alere and an undisclosed amount of money for Kalila Medical last week.
By purchasing Alere, Abbott says it will become the leading diagnostics provider of point-of-care testing. Abbott’s total diagnostics sales will exceed $7 billion after the close.
“Alere’s complementary portfolio of products will provide Abbott access to new channels and geographies, including entry into fast-growing outlets, such as doctors’ offices, clinics, pharmacies and at-home testing,” says Abbott.
Abbott expects the transaction to be completed by the end of 2016, company spokeswoman Darcy Ross tells IDDM.
Overall, Abbott appears attracted by Alere’s potential with its expansive product offering and strong presence in both hospital and retail markets, says Lawrence Biegelsen, a senior analyst with Wells Fargo Securities. Abbott plans to leverage its own operating platform to streamline processes and costs to improve profitability, he adds.
Meanwhile, with the acquisition of Kalila, Abbott gains technology to expand its portfolio of tools to treat atrial fibrillation and other heart rhythm disorders, the company says.
Kalila, headquartered in Campbell, Calif., has developed a novel steerable sheath that helps physicians access and perform catheter-based electrophysiology procedures. Kalila obtained 510(k) clearance from the FDA for its steerable introducer sheath in 2014 and received the CE Mark in December 2013. — Jonathon Shacat