Coppersmith Presentation to Alere Inc Stockholders
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SCOPPERSMITH
THE FACTS: HM has had disastrous financial results, destroyed massive amounts of value and in our view continues to be
a major overhang on stockholder value
ALERE'S PLAN: We believe management's current strategy for HM has two principal components
Health Management and Alere: Don't Get Fooled Again
1.
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Joint Venture 40% of HM
2.
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Rebrand as "Health Information Solutions" with a focus on health information exchanges (HIE)
HIE sales are de minimis and Alere is poorly positioned against the well capitalized HIE market leaders
COPPERSMITH'S PLAN: Divest HM and form a services partnership for monitoring
$270-$400mm of potential proceeds
▪ Boosts operating margins by 380bps and revenue growth by 90bps7
▪ HM dominates management's time as well as dialogue with investors, and harms overall valuation
▪ Record in HM is very poor and provides no reason to have confidence in any projections of future success
▪ Creates a $1.4B+ tax asset
Principally a cosmetic change to reporting, ownership remains 80% and Alere becomes more entrenched in the
strategy
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We believe HM is a millstone around Alere's neck as a public company and effectively acts
as a poison pill for a takeoverView entire presentation