), a medical products company focused on integrating rapid
diagnostics with health management, recently revealed that it has
taken over Epocal, Inc., which is a seller of know-how that
facilitates testing for electrolytes and blood gas from a point
near the patient.
Following adjustments, Alere paid about $166 million to take
over Epocal, including a payment of $15 million for
accomplishment of two milestones. If certain products are
delivered using the Epocal setup, then further payments of $75.5
million may take place.
Alere set up a definitive agreement with Epocal in 2009 to
purchase its equity in entirety, contingent upon the completion
of fiscal milestones such as gross margin on or before October
Diagnostic tests are shifting closer to consumers and into the
home testing market, as more diagnostic tests are being developed
to monitor patients rather than only diagnose. Alere's strategy
of combining disease management with point-of-care testing
(POCT), in a manner that encourages patients to take
responsibility over their overall health care, is viewed as a
prudent approach while at the same time ensuring
In addition to growing its revenues through a combined
strategy of continued acquisitions and measured organic growth,
the company is committed to improving its operating margin.
Further, its product pipeline is strong, which has been developed
through a combination of internal R&D as well as serial
acquisitions. One of the company's competitors is
We currently have a Zacks Rank #4 (Sell) on Alere. We are more
), which carry a Zacks Rank #1 (Strong Buy) and Zacks Rank #2
(Buy), respectively, and are expected to do well.
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