Report: Abbott audits Alere’s books ahead of $6B merger

June 2, 2016 By Brad Perriello Leave a Comment

Abbott (NYSE:ABT) reportedly triggered its right to audit Alere‘s (NYSE:ALR) books before consummating their $5.8 billion merger.

“Abbott is abiding by the terms of the contract with Alere and has exercised its contractual rights to audit Alere’s books and records,” spokeswoman Darcy Ross told Bloomberg. “To date, we have had a partial response from the company.”

Alere said it still expects the deal to close as planned, the news service reported; Alere has said it expects to complete the deal by the end of this year.

“Alere is in full compliance with its merger agreement with Abbott and we are confident that the transaction will be completed in accordance with its terms,” the company told Bloomberg in an e-mailed statement.

The month after the $56-per-share deal with Abbott was announced in February, Alere revealed a U.S. Justice Dept. subpoena over its dealings with 3rd-party distributors and healthcare officials in Africa, Asia and Latin America and said it would miss the deadline for its annual earnings report; Waltham, Mass.-based Alere has yet to file the report.

By April the deal was in trouble, with Alere rejecting a $50 million breakup offer from Abbott as that company’s CEO, Miles White, appeared to throw some shade. Shareholders have sued to block the deal.

Gabelli analyst Jeff Jonas said Alere isn’t likely to share any of that information with Abbott until its own review is done.

“I don’t think Alere will give them that full access until the restatement is complete and everything is pristine,” Jonas told Bloomberg. “Alere still insists it’s not material and only related to the timing of revenue, but the longer this drags on the less credibility they have.”

The Science of Multi-Layer Extruded Tubing and Medical Devices Incorporating Such Tubing
By Steve Maxson, VP of Sales, Spectrum Plastics Group Multi-layer extrusion technology is a process in which two or more polymers are extruded and simultaneously joined in a co-extrusion die head to form tubing with multiple layers. Running two or three extruders into a co-extrusion die head produces a single, multi-layered, extruded tube from a… […]
Tolomatic names new CEO
Paul Carlson has been named president and CEO of Tolomatic (Hamel, Minn.), a longtime supplier of electric linear actuators, pneumatic actuators and power transmission products for factory automation. Carlson has more than 30 years of manufacturing experience serving a broad spectrum of industrial, commercial, food and beverage markets globally. Most recently, Carlson was VP of… […]
IDS touts AI-based cameras and image processing system
IDS Imaging Development Systems is touting its IDS NXT, which it describes as an all-in-one solution for AI-based image processing. IDS NXT includes camera hardware with a self-developed AI core and training software for creating individual artificial neural networks and support. Users only need their application expertise and sample images to create a neural network,… […]
Pavmed gains FDA breakthrough nod for esophageal pre-cancer test
Pavmed (NSDQ:PAVM) recently announced that its Lucid Diagnostics subsidiary has received FDA breakthrough device designation for its EsoGuard esophageal DNA test. The test uses esophageal samples collected using Lucid’s 510(k)-cleared EsoCheck cell collection device from certain patients at elevated risk for esophageal dysplasia due to chronic gastroesophageal reflux disease (GERD). EsoGuard and EsoCheck are designed to… […]
FDA launches pilot to streamline 510(k) process
The FDA has begun a pilot program to make its medical device clearance process less cumbersome for applicants. With the electronic Submission Template And Resource (eSTAR) program, the application’s content is embedded within a PDF document so applicants can more easily develop, view and edit a 510(k). The agency said it will select up to… […]
Health Canada implements electronic medical device clinical trial data submission
By Stewart Eisenhart, Emergo Group Health Canada, Canada’s medical device market regulator, has begun accepting some clinical trial-related information from sponsors via electronic submissions. Get the full story here at the Emergo Group’s blog. The opinions expressed in this blog post are the author’s only and do not necessarily reflect those of MedicalDesignandOutsourcing.com or its… […]
This company’s medical containment system played a role in a coronavirus evacuation
The Containerized Bio-Containment System (CBCS), developed by Kansas City-based MRIGlobal, is a first-of-its-kind, flyable medical transport unit and features full biocontainment. This past week, the CBCS was brought into the ongoing worldwide coronavirus outbreak. Get the full story on our WTWH Media sister site R&D World. The post This company’s medical containment system played a […]
Zeiss expands its portfolio of microscope cameras
Zeiss recently announced that it has added four new CMOS cameras for digital imaging in light microscopy. These cameras are part of the Oberkochen, Germany-based company’s Axiocam series. The Axiocam 705 color and 712 color are designed to deliver the best possible image quality for histology, pathology or material research and analysis, thanks to excellent… […]
FDA recommends limiting use of power morcellators
The FDA today recommended that laparoscopic power morcellators, which have been implicated in the spread of cancer, be limited to use with certain tissue containment systems and only in premenopausal women who have suspected fibroid tumors and are under 50 years of age. Power morcellators were used for 20 years to laparoscopically remove benign tumors… […]
Abilitech aims to arm people with independence
Some have dubbed Abilitech’s device “a wheelchair for the arms.” Its machined aluminum exoskeletal arm and breathable cloth vest use a spring counterbalance system and a “living hinge” that spreads the load, making it — and the arm — feel weightless. Nancy Crotti, Managing Editor Rob Wudlick brushed his teeth on his own recently for… […]
RJG Germany opens injection molding training facility
RJG Germany (Karlstein) recently opened a new training lab for injection molding. The facility consists of a classroom that seats up to 20 students and a fully equipped lab for hands-on experience. The technical center currently consists of a 60-ton injection molding machine from Yizumi Germany, temperature control units and a material drying system from… […]