Print
Email
Print Edition StoriesMonday, June 2, 2008
Inverness may spin out health-management in a $1.2B joint venture
By Mass High Tech Staff
Diagnostic test maker Inverness Medical Innovations Inc. is in talks with private equity groups to form a $1.8 billion joint venture of its health-management business, the company said in a regulatory filing last week.
Waltham-based Inverness (AMEX:IMA) said it would receive about $1.2 billion in cash from the joint venture, which as planned would have a separate board of directors but would get administrative support from Inverness, according to a U.S. Securities and Exchange Commission filing. The joint venture would involve Inverness’ disease-management businesses Matria Healthcare, Alere Medical and Paradigm Health — all of which have been acquired since 2007.
Inverness CEO Ron Zwanziger has previously discussed the possibility of forming a joint venture for the company’s health-management business, which provides nursing and other care support to chronically ill patients. Some investors have questioned the diagnostic firm’s move into the health-management field, which analysts identified as a leading reason for a steep drop in the company’s stock price in 2008.
The company said in its SEC filing that the joint-venture deal has not closed and is subject to internal approvals and customary closing requirements.
With more than 5,000 workers worldwide, Inverness reported a 2007 net loss of $244.8 million on revenue of $839.5 million.
RSS Feeds
Comments
Please Login/Register to post comments.
No comments have been added or approved.