(Reuters) - Diagnostic test maker Alere Inc said it had received a grand jury subpoena from the U.S. Department of Justice seeking documents relating to its sales practices and that it would delay filing its annual report.
The company, which agreed to be bought by Abbott Laboratories for $5.8 billion last month, said the subpoena was related to sales and practices in Africa, Asia and Latin America, and matters associated with the U.S. Foreign Corrupt Practices Act.
Through the Alere deal, Abbott aims to become the leader in point-of-care diagnostic testing, a growing market as physicians increasingly adopt rapid tests that speed up treatment.
Point-of-care tests provide results to doctors within minutes and can be conducted in the physician’s office, an ambulance or even at home.
Alere also said on Tuesday it would be unable to file its annual report for 2015 within the 15-day extended period and that it still expected the Abbott deal to close by the end of the year.
The company said the delay in filing the annual report was because it was analyzing certain aspects of the timing of revenue recognition, more specifically, revenue cutoff, in Africa and China for 2013, 2014 and 2015.
Alere did not specify when it would file the 2015 report.
The company, which makes tests for infections such as HIV, tuberculosis, malaria and dengue, said it was in the process of responding to the grand jury subpoena.
The Waltham, Massachusetts-based Alere had received a subpoena in January from the U.S. Securities and Exchange Commission related to its revenue recognition practices in Africa. (1.usa.gov/1MkacJz)
Alere’s shares were down nearly 8 percent at $49.40 in early trading, their biggest percentage loss in one month.
Reporting by Rosmi Shaji in Bengaluru; Editing by Sriraj Kalluvila and Anupama Dwivedi