Alere Inc. (NYSE:ALR) The U.S. Justice Departments criminal-fraud section sent diagnostic-testing company Alere Inc a subpoena last month seeking patient-billing records, the WSJ reported, citing people familiar with the matter.
Aleres shares plunged 28.6 percent to close at $31.47 on Wednesday.
The subpoena asked for information about Aleres efforts to collect co-payments from patients, as well as forms submitted on their behalf to government programs such as Medicare, the WSJ said.
Alere said in April its board rejected a recent request by Abbott Laboratories Inc to terminate the $5.8 billion deal to buy Alere.
Alere said in March it had received a grand jury subpoena from the U.S. Department of Justice seeking documents relating to its sales practices. Alere could not be immediately reached for comment. A DOJ spokesman declined to comment.
Alere Equity Analysis
Alere Inc. (NYSE:ALR) opened trading today as $36.56 and is trading in the range of 31.47-55.99 today. Alere’s current market cap stands at $3.16 billion.
Alere is currently covered by 7 Wall Street analysts. The mean target price is $53.25 according to First Call. This presents a solid upside to the current price of the equity. The Mean Recommendation sits at 2.5 which is based on 1 Strong Buy, 1 Buy and 5 Hold ratings.
The most recent analyst actions consisted of Craig Hallum upgrading the stock on April 29th
The current quarter EPS consensus estimate is .58 with revenue estimates of 628.53M. Sales are expected to drop at a 5.80% rate. Alere reported actual earnings last quarter of 0.54 which fails to beat the .61 consensus estimate, a -11.50% surprise.
Alere Inc. provides point-of-care diagnostics and services for infectious disease, cardiometabolic disease, and toxicology in the United States and internationally. The company operates through Professional Diagnostics and Consumer Diagnostics segments. Its cardiometabolic products and services include tests to assist in the diagnosis and management of various cardiometabolic factors and conditions, including cardiac markers, glucose and HbA1C, cholesterol levels, blood gases, and home monitoring for VAD and oral anticoagulation. These meters and tests are used in hospital urgent care, laboratory, doctors office, or at home. The companys infectious disease products and services comprise tests to assist in the diagnosis and management of infectious diseases, such as HIV, malaria, syphilis, E. coli, and influenza. The infectious disease diagnostic tests and monitoring devices provide results for approximately 75 types of infectious diseases, including those caused by bacteria, viruses, fungi, or parasites. Its drug and alcohol testing portfolio includes rapid analyzer-based tests, visual-read screening devices, laboratory tests, and immunoassay reagents. The companys toxicology products are used in hospitals, clinics, physician offices, criminal justice systems, workplace, rehabilitation, occupational health clinics, home testing, and other. Alere Inc. also delivers services and solutions across various environments, including clinical immunology, womens health, and oncology. It markets its professional diagnostic products through its sales force and distribution networks; and First Check consumer drug testing products through retail drug stores, drug wholesalers, groceries, and mass merchandisers. The company was formerly known as Inverness Medical Innovations, Inc. and changed its name to Alere Inc. in July 2010. Alere Inc. was founded in 1981 and is headquartered in Waltham, Massachusetts.