This point from Abbott’s CEO was all we were looking to hear in Q2 Conference Call
We are referring to news about Abbott’s acquisition of St Jude Medical and Alere hitting a rough patch.
While the company had shelled out humongous ~31 billion dollars on combined deal, the deal had witnessed a hiccup when FTC asked company for more documents in case of St Jude, and for Alere, it was the subpoena from DOJ that made us feel about the deals falling apart.
In the recent Q2 conference call Miles White, CEO and chairman of Abbott assured that everything in terms of these two deals is on right track, and there is nothing to worry about.
Medtech players are known for their big cash shell out when it comes to acquisitions, Medtronic acquisition of Covidien, BD’s acquisition of Care Fusion and Pfizer acquisition of Hospira, just goes about showing how big of a cheque medtech behemoths sign-off during acquisitions.
But the story does not end there for medtech OEMs, they have to go through numerous regulatory checks & approvals before acquiring companies. Abbott though had signed of a massive ~31 billion dollar cheque for St Jude and Alere, it still had to go through challenging tasks lined next.
Miles White assurance on the deals was all the medtech fraternity was awaiting for. With closure of these deals,medtech consolidates further, which sure will entail more dynamics change for medtech industry.
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