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i-Stat's New Mainstream Partner: Abbott

i-Stat Corp., a leader in the point of care diagnostics business, is teaming up with Abbott Diagnostics to sell its hand-held POC devices to hospitals and clinics. The deal signals a change of heart on the part of both companies: Abbott has been sitting on the sidelines of the non-blood glucose POC market, watching it evolve, while i-Stat early on gained a reputation for trying to bypass laboratories in favor of selling directly to other hospital departments. Now, Abbott, which has a strong hold on clinical labs, will be taking over responsibility for all i-Stat sales, with the exception of territories carved out by another i-Stat partner, Hewlett-Packard.

The new strategic alliance between i-Stat Corp. and Abbott Laboratories Inc. signals something of an about-face for both companies [See Deal]. i-Stat initially steered clear of hospital central laboratories, pitching its innovative hand-held point-of-care (POC) blood analyzer to other hospital departments like critical care unit coordinators and hospital financial administrators, an approach that aroused considerable controversy. While the company has softened its stance in recent years, its deal with Abbott signifies a major effort on i-Stat's part to work through the central laboratory-where Abbott, after all, has a stronghold.

For Abbott, too, the relationship is a change in direction. While Abbott has been involved for several years in POC blood-glucose testing in hospitals, it has shied away from other...

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