Alere Alere: The Legend of M&A and Mergers

Recently, the in vitro diagnostic industry (commonly known as IVD) has a big news that has touched the hearts of the industry: IVD predator Abbott announced that it will acquire the POCT overlord Alere for $5.8 billion, which will not only make Abbott one step after another. Roche's second-largest global IVD industry, POCT's market structure has changed. Looking at the reports of major media, the basics are mainly based on the transmission of news, and there is little in-depth exploration of the insider. Combining my own experience in the IVD industry, the author combines Maggie LUO, a senior accountant from the United States, to present a fine meal for everyone.

Alere Alere: The Legend of M&A and Mergers

First, a brief history of the United States

The United States Ellier, POCT hegemony also. The global professional POCT (point-of-care testing) market size is about 6 billion US dollars, accounting for 10-11% of the entire IVD market of 60 billion US dollars. Alere's 2015 sales of about 2.5 billion US dollars, accounting for more than 40% of the entire POCT market share, is the well-deserved boss.

Since 2001, INVERNESS MEDICAL INNOVATIONS, INC has been established independently from INVERNESS MEDICAL TECHNOLOGY., INC., and is listed on the American Stock Exchange (ASE) under the symbol IMA. In 2007, after ASE was acquired by the New York Stock Exchange (NYSE), it was transferred to NYSE to continue trading.

The company has achieved leapfrog growth through a strong acquisition. In 2010, on the occasion of the company's 10th anniversary, with a bigger dream, and to tell investors more great stories, renamed Alere, known as the development of the concept of "connecting patients' health management."

In 2014, because the company has been unprofitable, investors can no longer endure the company's founder and CEO Ron Zwanziger's flicker, ask him to take the class; at the same time, the former Johnson & Johnson orthopedics director Namal Nawana dug to replace Ron for deep surgery. However, at this time, Alere has been rushing through the rush of acquisitions, and the debt has been high; coupled with the economic downturn, the appreciation of the US dollar and internal integration and operational difficulties, the new CEO is also unable to return. At the beginning of 2016, Abbott announced the acquisition of Alere in a global medical mergers and acquisitions frenzy. At this point, Alere officially withdrew from the historical stage.

Second, the United States Elil merger and acquisition growth logic

Before 2001, the owner of the US Airil, Ron Zwanziger, a Jewish businessman, did two major things: selling part of the blood sugar to Johnson, which is LIFESCAN; selling another part of the blood sugar to Abbott, Mediens. Because of the prohibition agreement, Alere did not return to the field of blood glucose testing through mergers and acquisitions until 2011.

1. Establish a product portfolio business map through mergers and acquisitions

After 2001, the development has been tepid, with operating income of around 3-5 billion US dollars (before 2006), not prominent in the IVD industry.

In 2006, through the two-step merger and acquisition of Hangzhou Aikang's rapid diagnosis business, and making it a base for the transfer of production in developed countries, this move is quite eye-catching.

A bigger opportunity emerged in 2007, and by taking Biosite from the Beckman tiger mouth, it became the cornerstone of its rapid cardiovascular diagnostic business, and it has been out of control in the field of POCT.

In 2007, Alere Medical was also acquired, a health management company and other health management related companies such as ParadigmHealth, which laid the foundation for the subsequent renaming and expansion of the company's vision.

In 2010, the company acquired Standard Diagnostics, a company that conducts infectious disease testing, and expanded its territory in the field of infectious diseases.

In 2011, through the hostile takeover of stocks on the open market, it was similar to the battle between Baoneng and Vanke. It took control of Axis-Shield, a blood sugar testing company, and joined the previously acquired Arriva company to fully enter the field of blood glucose testing and seize the market. .

In 2013, after successfully representing the blood and electrolyte business of Canadian company Epocal for many years, it successfully acquired a wholly-owned acquisition to His Majesty. However, at this time, the US Airil has been the end of the acquisition of the battlefield.

In 2014 and 2015, the overwhelmed Alere gradually slimmed down and sold non-professional POCT businesses such as health management business.

2. Entering the developing country market through M&A channels

In addition to the M&A business and product portfolio, Amelair also gains access to markets and customers through a number of M&A channels. For example, Aikang in China and its channels, Jinsung Meditech, Inc. in Korea, Prodimol Biotecnologia SA in Brazil, and Bioeasy Diagnostica Ltda., Spectral Diagnostics Private Limited in India, PT Mega Medika Mandiri in Indonesia, in Colombia Biosystems SA, as well as Biolinker SA in Argentina and more.

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