Alere Inc. Earnings Call Nuggets: New Product Result, In-Sourcing

On Monday, Alere Inc. (NYSE:ALR) reported its first quarter earnings and discussed the following topics in its earnings conference call. Take a look.

New Product Result

Daniel Leonard – Leerink Swann: On the new product result in the quarter, is it fair to assume that the mix of revenue in new products was more skewed towards consumables in this quarter as comparison to the fourth quarter, and also was there any impact form the funding environment for HIV programs worldwide?

Ron Zwanziger – Chairman, CEO and President: It’s partially to make that statement. We did actually get some additional instruments placements that we had those as well and we’re continuing to see consumables continuing to increase. We haven’t detected any changes around payments from the various agencies for the products.

Daniel Leonard – Leerink Swann: This is my follow-up question, have you offered an expected accretion number for each eScreen for 2012 and if not could you?

Ron Zwanziger – Chairman, CEO and President: No, I don’t think we have. I mean all we’ve really said is that we paid about roughly speaking 10 times forward EBITDA roughly speaking and expected I should say and we have a fair amount of consolidation uncertainty around a number of areas in that space.


John Putnam – Capstone Investments: Ron, in your press release you talk about the capture I guess of some of the Health Management business by other insurance companies. Can you kind of elaborate on that is that what that’s doing to the business and how you can kind of overcome that?

Ron Zwanziger – Chairman, CEO and President: Well we saw a lot of that last year in sourcing and that was thus been factored in all our comments so far. If anything we’ve seen little bit of an evading of that, we’ve also seen an increase in demand in general. In-sourcing is a tide that comes and goes and I think how we deal with it is by having increasing differentiation in our products where we can have better outcomes in the programs that we offer and as you know, we are very focused on the specialist side of Health Management using diagnostics which yields better outcomes and that remains our focus.

John Putnam – Capstone Investments: Your guidance on the business going forward, do you think it’s flat on a sequential basis?

Ron Zwanziger – Chairman, CEO and President: You are talking about the overall business or the Health Management?

John Putnam – Capstone Investments: Just the Health Management.

Ron Zwanziger – Chairman, CEO and President: What we indicated, Dave indicated in the prepared remarks that while we are little bit optimistic and perhaps hopefully this year it’ll be flat over their balance.