Pharma BD Deal Intelligence

Abbott Laboratories / TheraSense Inc.

2004 · Acquisition/Merger · $1.2B · Complete

CALLED IT — OFF BY 7

A $1.2B glucose-monitoring bolt-on that, through a discontinued first-gen CGM and a two-decade R&D detour at the same Alameda site, became the foundation of Abbott's $6.8B/year FreeStyle Libre franchise — one of medtech's great long-tail payoffs, though not a clean or fast one.

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The coverage arc

Jan 13, 2004 NBC News / AP Neutral

Abbott agrees to acquire TheraSense, taking advantage of a growing US diabetes market; deal expected to close Q2 2004.

Jun 15, 2024 Crain's Chicago Business Bullish

FreeStyle Libre, the long-tail product of Abbott's TheraSense buy, has become Abbott's flagship diabetes franchise but now faces rising CGM competition from…

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Diabetes blood glucose monitoring; $27/share cash; merged into Abbott Diabetes Care; closed Q2 2004

Did it work? Outcome assessment

A $1.2B glucose-monitoring bolt-on that, through a discontinued first-gen CGM and a two-decade R&D detour at the same Alameda site, became the foundation of Abbott's $6.8B/year FreeStyle Libre franchise — one of medtech's great long-tail payoffs, though not a clean or fast one.

Strategic verdict
Achieved Stated Rationale

Key facts

Related deals — scored

DealYearValueOutcome
Abbott Laboratories / TheraSense Inc. (this deal)2004$1.2B81
Abbott Laboratories / Knoll Pharmaceutical Company (BASF Pharma)2001$6.9B100
Abbott Laboratories / Knoll Pharmaceuticals (BASF Pharma)2000$6.9B95
Abbott Laboratories / Alere Inc.2016$5.8B95
Abbott Laboratories / St. Jude Medical2016$30.5B82
Abbott Laboratories / Vysis Inc.2001$355M79
Abbott Laboratories / Genentech, Inc. (Roche Group)200779

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