Abbott Labs splurges for Therasense
January 19, 2004
NORTH CHICAGO, Ill. - Â Abbott Laboratories made headlines across the country last week when the giant pharmaceutical company paid $1.2 billion in cash for Therasense, an innovative diabetes testing manufacturer based in Alameda, Calif.
Therasense makes the Freestyle blood glucose monitoring system that uses a minute blood sample drawn from the forearm rather than from the fingertip
"This transaction will allow us to better serve the needs of people with diabetes through advanced technology, a promising pipeline, a broader product line, and critical mass in research, development, sales and marketing," said Ed Fiorentino, president of Abbott's MediSense Products division.
Under the terms of the agreement, Abbott will acquire all of the outstanding stock of TheraSense for $1.2 billion, net of cash currently held by TheraSense. Closing is expected during the second quarter of 2004.
Abbott entered the blood glucose monitoring field with the acquisition of MediSense in 1996. MediSense was the first company to commercialize biosensor technology and grew rapidly with its product, Precision QID.
TheraSense's entry into the field of diabetes testing began in mid-2000 with the launch of its FreeStyle blood glucose monitoring system. The company's FreeStyle system has a very small sample size requirement (0.3 microliter), which is 50-90 percent less than most conventional testing systems. This permits finger testing or less painful alternate site testing on the forearm, upper arm, thigh, calf and base of the hand.