Ortho Clinical Diagnostics

History

2021: Quidel bought Ortho Clinical Diagnostics for $6 billion

On December 23, 2021, it became known that the manufacturer of tests for COVID-19 Quidel agreed to buy Ortho Clinical Diagnostics for about $6 billion. The transaction value per share of the sold company is $24.68 per share, which is a surcharge of 24.7% to the quotation rate at the end of exchange trading on December 22. The price of the transaction included $2 billion in debts of Ortho Clinical.

Ortho Clinical Diagnostics Holdings operates as a holding company that, through its subsidiaries, provides laboratory diagnostic products and services to the global communities of clinical laboratories and immunogematologists. Ortho Clinical Diagnostics Holdings serves customers worldwide.

Quidel acquired Ortho Clinical Diagnostics for $6 billion

Ortho Clinical also manufactures disease diagnostic products and other equipment used for in vitro diagnostics on the nearly $80 billion market that serves hospitals and clinics.

The deal will add clinical tests for COVID-19 antigen and Ortho Clinical Diagnostics antibodies to Quidel's own set of tests, including antigen and PCR for coronavirus. Quidel, which has been in great demand for these tests since 2020 is in high demand for these tests, also sells tests for molecular diagnostics and cell culture.

The deal looks even more favorable to Quidel amid a rapidly spreading Omicron option in the US, when pharmacy chains including Walgreens Boots Alliance and CVS Health, as well as the Walmart chain of stores, have limited sales of virus tests.

Omicron became the dominant strain in the country, accounting for 73% of infections in a week, from December 11 to 18.

Quidel, in a call with analysts, said it expects its Savanna PCR test platform to benefit from Ortho Clinical's global presence. Quidel has already launched tests that can detect two types of influenza and COVID-19.

The transaction is expected to be completed in the first half of 2022, will provide an estimated savings of $90 million by the end of 2023, the companies said.^[1]

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