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Alere Reports 6 Percent Dip in Q1 Revenues Despite Strong Rapid Influenza MDx Sales

NEW YORK (GenomeWeb) – Alere today filed its financial results for the first quarter of 2016, reporting a 6 percent decrease in revenues year-over-year.

For the three months ended March 31, Alere reported revenues of $578.0 million, down from $613.0 million in Q1 2015. The firm said that the revenue decrease was primarily due to the negative impact of $17.0 million in foreign currency exchange, a $6.0 million decrease in revenues from its pain management segment, and a $14.0 million decrease in revenues related to Alere's divestiture of its BBI business.

Each of the company's business units reported a year-over-year revenue loss in Q1. The firm reported a 3 percent dip in cardiometabolic disease revenues to $195.0 million from $201 million; a 1 percent dip in infectious disease revenues to $183.0 million from $185.0 million; a 1 percent fall in toxicology revenues to $147.0 million from $149.0 million; a 21 percent fall in consumer diagnostics revenues to $17.0 million from $22.0 million; a 42 percent fall in license and royalty revenues to $3.0 million from $5.0 million; and a 35 percent decrease in other revenues to $33.0 million from $51.0 million.

Revenue decreases were partly offset by an increase in sales to $12.0 million of Alere i — a rapid molecular diagnostic test that uses isothermal nucleic acid amplification technology for influenza testing — and activities related to the acquisition of US Diagnostics, a provider of drug testing services that Alere purchased in 2015.

In Q1, Alere's global influenza sales were $27.0 million, including $20.0 million in the US. On an organic basis, sales fell 1 percent, the firm said. Excluding US influenza and pain management, organic growth was almost flat at 0.2 percent.

Net loss from continuing operations for Q1 2016 widened to $10.0 million, or $0.18 per share, from $6.0 million, or $0.14 per share in the prior-year period.

Earlier this month, Alere reported a 7 percent year-over-year dip in Q4 2015 revenues to $623.0 million from $667.0 million. The firm also said that it has finished analyzing certain aspects of revenue recognition for 2015, 2014, and 2013, and each of the quarters during those years. Alere revised its financial statements for the interim periods of 2015 and the years ended Dec. 31, 2014 and 2013. 

Alere is in the process of being acquired by Abbott, which agreed earlier this year to pay $5.8 billion to buy the company. Uncertainty emerged around the acquisition when Alere delayed filing its 10-K report with US securities regulators. Abbott then requested termination of the deal, which Alere refused. Alere has also received a grand jury subpoena from the US Department of Justice over sales practices and dealings in Africa, Asia, and Latin America.

Abbott, responding to Alere's Q4 filing, said it was still concerned that a number of issues needed to be resolved. In response to an inquiry from GenomeWeb earlier this month, however, Alere said Abbott has no basis to avoid closing the pending acquisition.

Alere said it is seeking an extension to file its second quarter 2016 financial statements, and plans to file its Q2 Form 10-Q by Sept. 13. The firm also expects to pay approximately $3 million in fees related to the extension.

Shares of Alere were up nearly one percent at $40.76 in morning trading on the New York Stock Exchange. Shares of Abbott were down a fraction of one percent at $44.71.