Alere Inc. (ALR), a medical products company focused on integrating rapid diagnostics with health management, reported that its Board has authorized share repurchases worth up to $50 million. This is in addition to $50 million worth of stock bought back by the Massachusetts-based company during the first quarter of 2011.
The repurchase will be executed from time to time in the open market or in privately negotiated transactions based on market conditions, stock price and other factors. After taking into account the repurchases completed till date, Alere’s senior secured credit agreement (as amended) authorizes a total additional share buyback of up to $150 million.
Alere helps people take responsibility of their health and quality of life at home by developing near-patient diagnosis (point-of-care), monitoring and health management products. Its products and services focus on cardiology, infectious disease, oncology, drugs of abuse and women’s health. The company competes with Becton, Dickinson (BDX) and Abaxis (ABAX), among others.
Alere reported better-than-expected fourth-quarter fiscal 2010 results with adjusted earnings and revenues topping the Zacks Consensus Estimates, boosted by double-digit growth in its Professional Diagnostics segment.
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.
Alere, in November 2010, launched the world’s first fingerstick BNP (b-type natriuretic peptide) test designed for use to diagnose and assess the severity of heart failure in patients. The new test (“Alere Heart Check System”), which offers lab accurate results within 15 minutes of drawing blood samples, allow medical practitioners obtain point-of-care BNP results that aid in their decision-making.
Diagnostic tests are shifting closer to the consumers and into the home testing market, as more tests are being developed to monitor patients rather than simply diagnose them. Alere’s strategy of combining disease management with point-of-care testing, in a manner that encourages patients to take responsibility for their overall health care, is viewed as a prudent approach while at the same time ensuring affordability.
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