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Abbott Acquisition of STARLIMS Expected to Grow Informatics Capabilities in the Diagnostics Marketplace

The recent news that Abbott, a global health care company, will acquire STARLIMS Technologies Ltd., a market leader in LIMS, for $123 million should stimulate growth in diagnostics informatics capabilities. Abbott believes that the acquisition will strengthen their competitive position in the global diagnostics market. STARLIMS, perhaps more than any other LIMS vendor, has extensive expertise in not only LIMS but also the LIS marketplace that targets clinical and hospital data management requirements. This article explores the acquisition through an interview with Jeff Ferguson, STARLIMS Chief Operating Officer.

Q: Explain the big picture behind the acquisition

A: “For Abbott, the acquisition of STARLIMS provides access to advanced technologies and technical expertise in laboratory information management systems, enabling the company to accelerate its global strategy in informatics. The configurability and flexibility of the STARLIMS solution was highly desirable based on Abbott’s desire to serve the core, molecular and point of care diagnostic segments. This strength becomes increasingly important as physicians expand their use of translational research techniques such as genomics and genetic testing in the clinical setting.”

Q: What’s the strategic importance of this acquisition by Abbott?

A: “Diagnostics companies like Abbott are targeting informatics to gain a strategic advantage in offering lab customers solutions to optimize workflow, support clinical and operational decision-making and improve internal operations. STARLIMS was identified as the optimal partner in this field based on its use of web-based technologies, technical and management leadership, and the technology’s flexibility for future feature expansion (enabling tailored solutions). Additionally, Abbott was impressed with STARLIMS proven track-record of entering new [vertical] markets and configuring their product based on a deep understanding of customer needs.

As Abbott expands and integrates the STARLIMS technology into the clinical laboratory setting, it will be able to offer its customers a common informatics framework across all of its diagnostics businesses, including core laboratory, molecular and point-of-care diagnostics.

As the needs of Abbott’s customers are unique and specific, it is important to note that Abbott and its existing OEM partners intend to fully support IT solutions, such as laboratory middleware, interface engines, regional laboratory information systems, reagent management, and quality control solutions, currently provided to laboratories.”

Q: How will it further Abbott’s corporate objectives?

A: “STARLIMS will strengthen Abbott’s competitive position in the global diagnostics market by enhancing its capabilities and expertise in informatics, an emerging and rapidly growing field focused on managing and expediting the ever-increasing amount of laboratory, medical and administrative data via electronic and web-based information systems.

In addition, the acquisition also offers Abbott growth opportunities in non-clinical market segments, such as forensics, microbiology and public health, where STARLIMS currently has a strong presence. These market segments are complementary to Abbott’s existing diagnostics businesses.”

Q: How do you envision STARLIMS changing as they become part of the Abbott infrastructure?

A: “After the close of the transaction, STARLIMS will become a separate business unit within Abbott, supporting Abbott’s three global diagnostics businesses: core laboratory, molecular and point-of-care. STARLIMS CEO Itschak Friedman will continue to lead the STARLIMS organization, as Abbott focuses on seamlessly integrating the STARLIMS technology into the clinical laboratory. At the same time, Abbott intends to grow the non-clinical lab segments through STARLIMS’ existing commercial organization.”

Q: Will this change the focus of STARLIMS to more of a pharma-centric approach?

A: “As the STARLIMS technology is integrated into the clinical laboratory segment, the focus will continue to be on growing markets, such as government, manufacturing and life sciences, where STARLIMS has a strong presence. These important customers will continue to be served by STARLIMS’ existing commercial organization.”

Q: How will the acquisition affect existing STARLIMS customers?

A: “Abbott is committed to supporting STARLIMS’ existing customers and intends to invest and grow in those market segments that STARLIMS currently serves.”

Q: How do you envision the change in ownership affecting STARLIMS in the future?

A: “Abbott has a strong and successful track record of acquiring small- to mid-size companies and technologies with the potential for long-term growth and leadership in markets that complement its existing businesses. We look forward to becoming a part of Abbott and working together to serve our current customers and expand the availability of our technologies to address unmet needs in laboratories around the world.”