Mike Barbella12.20.11
Alere Inc. is shaking things up again. The Waltham, Mass.-based developer of home healthcare diagnostic tools is reshuffling its product portfolio with the $65 million acquisition of Arriva Medical.
Besides the cash payment, Alere offered 806,452 restricted shares of its stock for Arriva, a privately held provider of home diabetes testing supplies. The Coral Springs, Fla.-based firm reported about $21.5 million in revenue during the six months ended Oct. 31.
Neither company released a statement about the deal.
With diabetes—both Type 1 and Type 2—expected to grow at a rapid pace over the next several decades, the disease most likely will drive a lucrative market for companies that manufacture drugs, diagnostic tests and treatment devices. Centers for Disease Control and Prevention data indicate that 105 million Americans are living with diabetes or pre-diabetes, and as many as one in three adults could have the disease by 2050 if current trends persist.
Alere develops products in various markets, including cardiology and infectious diseases. Over the last few years, the company has focused on diversifying its product portfolio by acquiring new businesses and unloading others. Formerly known as Inverness Medical Innovations Inc., Alere is an amalgamation of several diagnostic and health management companies with expertise in more than 100 different disease categories. Its product and service offerings range from lab-based diagnostics to in-home monitoring solutions.
In October, Alere reported its third-quarter profit surged compared with the same period in 2010 due to a sizable gain related to the formation of a joint venture with Procter & Gamble Co.
Besides the cash payment, Alere offered 806,452 restricted shares of its stock for Arriva, a privately held provider of home diabetes testing supplies. The Coral Springs, Fla.-based firm reported about $21.5 million in revenue during the six months ended Oct. 31.
Neither company released a statement about the deal.
With diabetes—both Type 1 and Type 2—expected to grow at a rapid pace over the next several decades, the disease most likely will drive a lucrative market for companies that manufacture drugs, diagnostic tests and treatment devices. Centers for Disease Control and Prevention data indicate that 105 million Americans are living with diabetes or pre-diabetes, and as many as one in three adults could have the disease by 2050 if current trends persist.
Alere develops products in various markets, including cardiology and infectious diseases. Over the last few years, the company has focused on diversifying its product portfolio by acquiring new businesses and unloading others. Formerly known as Inverness Medical Innovations Inc., Alere is an amalgamation of several diagnostic and health management companies with expertise in more than 100 different disease categories. Its product and service offerings range from lab-based diagnostics to in-home monitoring solutions.
In October, Alere reported its third-quarter profit surged compared with the same period in 2010 due to a sizable gain related to the formation of a joint venture with Procter & Gamble Co.