Inverness Medical Innovations Inc. put some black ink on its balance sheet during the third quarter, logging a 22.1 percent increase in revenues compared with Q3 2008, largely on a jump in sales of its influenza diagnostic tests and contributions from acquisitions.
The Waltham, Mass.-based diagnostics giant posted net income of $14.3 million on net sales of $535.8 million for the three months ended Sept. 30, compared with a net loss of $9.1 million on sales of $438.8 million during the same period last year.
Inverness cashed in on the Swine Flu, as North American influenza sales soared to $40.4 million, up 494 percent compared with $6.38 million during the third quarter of 2008. That’s in line with a prediction from Barclays that Inverness stock would earn a boost from the H1N1 influenza virus pandemic. The British bank pegged the company for increased sales of its BinaxNOW rapid influenza test, despite reports of the ineffectiveness of rapid flu tests.
Acquisitions contributed another $37.4 million toward the top line; the company made a few acquisitions during the quarter, snapping up Seattle’s Free & Clear, which provides programs aimed at improving health, for $100 million in cash and up to $30 million in revenue-pegged contingencies. Inverness funded that buy with a $100 million offering of senior notes.
In a conference call with analysts, company executives said similar financing arrangements could be in store in the future, as they don’t feel the company is especially over-leveraged.
Inverness also launched an unsolicited $79.9 million bid to acquire a 40 percent stake in South Korean diagnostics provider Standard Diagnostics Inc.