Abbott Labs (ABT) recently completed the acquisition of Starlims Technologies Ltd. for $123 million.
Starlims is a leading provider of laboratory information management systems. It improves the reliability of laboratory sampling processes, supports compliance with domestic and international regulations and industry standards, and provides comprehensive reporting, monitoring and analysis capabilities. The software is used to manage laboratory testing.
We believe this acquisition will help Abbott strengthen its position in the global diagnostic testing market. The company should be able to build its position in laboratory informatics, which is an emerging and fast growing market that focuses on managing the data generated by laboratories.
Abbott has been in acquisition mode over the past few quarters in a bid to strengthen its pipeline. Earlier this month, the company announced its intention to acquire Facet Biotech Corporation (FACT).
Besides this, the company signed an exclusive worldwide licensing agreement with Pierre Fabre SA for the development and commercialization of a cancer compound, h224G11. The company also completed its acquisition of the pharmaceuticals business of Belgian company Solvay Group in February.
Last year, Abbott acquired Advanced Medical Optics. Besides this, the company also acquired eye care companies Visiogen and Evalve Inc., which focus on the development of devices for minimally invasive repair of cardiac mitral valves. Abbott also acquired global rights to a pain drug in 2009.
With these deals, we believe Abbott is looking to diversify its product portfolio so that it can reduce its dependence on Humira, which contributed $5.5 billion to sales in 2009. We currently have a Neutral recommendation on Abbott.
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