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Alere Q2 Revenues Drop 9 Percent as Cardiometabolic, Infectious Disease Sales Decline

NEW YORK (GenomeWeb) – Alere on Thursday reported that its second quarter revenues fell 9 percent year over year, driven primarily by sinking sales in its cardiometabolic disease and infectious disease test segments.

For the three months ended June 30, the firm reported revenues of $557.7 million compared to restated revenues of $610.3 million in Q2 2016. The firm said that its financial results for Q2 reflect a $6 million negative impact of foreign currency exchange.

Sales for its cardiometabolic disease tests declined 16 percent year over year to $140 million from $167 million, while infectious disease test sales dropped 12 percent to $167 million from $189 million, toxicology test revenues rose 1 percent to $160 million from $158 million, and consumer diagnostics sales were down 17 percent to $17 million from $20 million. Sales declined 4 percent for its "other" tests to $35 million from $36 million, and were flat for its "other non-reportable" segment at $37 million and for license and royalty revenues at $3 million.

Alere reported a net loss of $92.7 million, or $1.13 per share, compared to a net loss of $32.8 million, or $.44 per share, for Q2 2016.

Alere is in the process of being acquired by Abbott for $5.3 billion. The transaction is expected to close by the end of the third quarter.

Alere said its R&D spending for the quarter rose 4 percent to $29.4 million from $28.4 million, while its SG&A expenses jumped 5 percent to $252.2 million from $239.3 million.

The firm finished the quarter with $491.7 million in cash and cash equivalents, $52.5 million in restricted cash, and $150,000 in marketable securities.

Alere's financial results for Q2 2016 reflected restatements of revenues stemming from incorrectly recorded revenue transactions by its Standard Diagnostics subsidiary in South Korea.

On Friday, Alere's shares were down less than 1 percent at $49.38 in morning trading on the Nasdaq.