The American owner of Dundee diagnostic firm Axis-Shield has revealed how taking on the Technology Park-based concern in a quarter of a billion pound deal helped it narrow losses last year.
Healthcare technology giant Alere Inc, which paid a total of £248 million to snap up the entire issued stock of the former plc during 2011, saw gross profits climb 15% to $1.4 billion in 2012, with an 18% rise in annual revenues to £2.8bn.
However, that could not wipe out increasing costs, as the group posted pre-tax losses of $121m down from $166m the year before.
Documents posted at Companies House yesterday reveal the Massachusetts-headquartered firm has grown its diabetes testing business since taking on Axis and also detail how the Dundee University spin-out made a major contribution to its income.
“Following our November 2011 acquisitions of Axis Shield and Arriva Medical, which effectively established our diabetes business, we acquired several mail-order, diabetes home-testing product supply businesses,” revealed management in Alere’s annual accounting return.
“Our diabetes revenues have grown to over $144m in 2012 and including the effect of acquisitions completed in early 2013, we now service more than 250,000 active diabetes customers.”
The company, which employs 17,400 people worldwide, said the Dundee acquisition had helped provide a “strong foundation” in the diabetes sector giving it a competitive advantage as changes to the Medicare and Medicaid systems are introduced in the United States.
While Alere did not reveal Axis’ contribution to revenues in its diabetes business, it did spell out how the Dundee firm’s products enhanced earnings throughout the rest of its professional diagnosis unit.
In cardiology testing, Axis, which also has manufacturing facilities in Norwegian capital Oslo, contributed some $19.3m in sales as the business segment saw net revenues slip 3% to $503m.
Its infectious diseases division saw Axis account for $27.4m of sales or more than half the 9% increase bringing total income to $616m. Axis also benefited Alere to the tune of $3.7m in licence and royalty-related income.
However, the year-end figures also revealed how Alere’s total debt increased to $3.7bn at the end of December, up from $3.3bn the year before.
Alere completed its hostile takeover of Axis-Shield in November 2011, despite directors at the in-vitro diagnostic company spending more than £7m trying to stave it off.
They initially railed against Alere’s “unsolicited and highly-preliminary” bid, saying it grossly undervalued the company but later relented in the face of a marginally-improved bid.