Alere (ALR), a medical products company focused on integrating rapid diagnostics with health management, recently revealed that it has taken over Arriva Medical, a prominent vendor of diabetes testing supplies for patients residing at home.
Florida-based Arriva had sales of about $21.5 million for the half year ending October 31, 2011. The company delivers diabetes supplies right to the patient’s home. It completes claim forms and bills Medicare as well as the supplemental insurance company for the patient.
Alere paid about $65 million in cash to acquire Arriva, besides 806,452 restricted shares of its common stock. The deal is subject to working capital and various closing adjustments.
By acquiring Arriva, Waltham-based Alere acquires fresh abilities to handle near-patient treatment. Alere’s expertise and product development efforts center around women’s health, infectious disease, cardiology, toxicology and oncology.
Diagnostic tests are shifting closer to the consumers and into the home testing market, as more diagnostic tests are being developed to monitor patients rather than simply diagnose them. 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 affordability.
In addition to growing its revenues through a combination 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 Abaxis (ABAX).
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