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Terms of Abbott acquisition of Alere changed, lawsuits dropped
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Abbott and Alere announced that the terms for Abbott’s pending acquisition of Alere have been amended and the companies have ceased litigation against each other.
Abbott had announced in December that it was seeking to terminate the agreement to acquire Alere, which makes point-of-care testing devices, because Alere lost value due to product recalls, billing issues, government investigations and financial issues.
Instead, the companies reached an amended agreement. According to a press release from both companies, Abbott will pay $51 per common share to buy Alere, for an expected equity value of $5.3 billion, down from the expected equity value of $5.8 billion in the original agreement, reached in February 2016.
The date by which necessary regulatory approvals must be received has been extended from April 30 to Sept. 30, and the companies have agreed to dismiss their lawsuits against each other, according to the release.
After consultation with the FDA, Alere withdrew two point-of-care INR tests for anticoagulation monitoring from the U.S. market in July 2016 because of faulty INR readings in patients with characteristics such as abnormal hematocrit levels, raised fibrinogen levels and related conditions, and bleeding or bruising.