In the midst of a management transition, diagnostic company Alere missed its quarterly numbers. The company acknowledged its recent problems and missteps as well as started to outline a new strategic vision for Alere that will become clearer to investors around the end of this year, when a comprehensive review will be finished.
So much for those IPO plans. Alere last week decided against taking its BBI Diagnostics businesses public on the London Stock Exchange, citing equity market conditions in the U.K.
Alere's i Influenza A & B test, which the company says is the first and only molecular test to detect and differentiate beween the two types, received FDA clearance on June 16.
BBI Diagnostics Group provided details off its plans to be traded on the London Stock Exchange in June 2014 in a May 19 statement. The IPO will consist of the sale of the 25% indirect ownership interest in BBI held by parent company Alere.
In reaction to three patient deaths associated with its INRatio2 PT/INR Professional Test Strips, Alere initiated a voluntary Class I recall of the products.
Still finding its footing after irked investors mounted a proxy challenge last year, Alere is shuffling its top ranks and setting out on a review of its operations, a move that could spell more divestitures.
In the wake of bitter proxy fight, diagnostics leader Alere revealed plans to trim off some its noncore businesses, planning an IPO in an effort to keep its promise to investors worried about the company's mounting debts.
Alere's 2013 fourth quarter reflected a healthy boost in revenue and a drastic reduction in net losses over a year ago. The gains came, in part, from organic growth and cutting costs in areas including research and development and administration.
If timing is everything, then Alere stands to gain plenty, thanks to the Affordable Care Act. The new law mandates reimbursement for HIV testing from both public and private insurers, and Alere recently rolled out a new, first-of-its-kind combo HIV diagnostic in the U.S.
Alere is trying to get back to business as usual now that it has shaken off a proxy challenge, winning the FDA's blessing for a combo HIV diagnostic as it works to convince investors it has a plan for the future.