Inverness Acquires Abbotts' Rapid Diagnostics

In a transaction that will enhance the company's product line, Inverness Medical Innovations (Waltham, MA, USA) will acquire the Determine/DainaScreen assets of the rapid diagnostics business of Abbott Laboratories (Abbott Park, IL, USA) for U.S.$56.5 million.

The assets include diagnostics for hepatitis, HIV, and syphilis, as well as manufacturing equipment and certain licensed intellectual property related to the products. In 2004, the business represented by Determine/DainaScreen generated revenues of about $23 million.

Abbott will continue to distribute the Determine products, which are marketed outside the United States, for up to three months and will receive a sales commission on net sales. Under a long term-supply arrangement, Inverness will sell products to Abbott that will allow Abbott to continue to distribute the Determine HIV ½ rapid test at no profit to Abbott through the Abbott Access to HIV Care programs in 69 countries, including all of Africa and the least-developed countries. Abbott also will continue to donate Determine HIV tests purchased from Inverness to programs that address mother-to-child transmission of HIV in the same countries.

"This acquisition allows Inverness to enhance its professional diagnostics product line with the addition of the premiere rapid HIV test worldwide,” remarked Ron Zwanziger, chairman, president, and CEO, Inverness Medical.



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