Diagnostics Firm QuidelOrtho Contemplates Selling Transfusion Medicine Arm Valued Up To $2B: Report
Portfolio Pulse from Vandana Singh
QuidelOrtho Corp (NASDAQ:QDEL) is considering selling its transfusion medicine division, which could be valued between $1.5 billion and $2 billion. The company is working with advisors to gauge interest from potential buyers. The unit, acquired through the purchase of Ortho Clinical Diagnostics Holdings Plc in 2022, reported a Q3 revenue of $164 million, a 0.5% increase year-over-year. The sale discussions are preliminary, and there is no certainty of a transaction. QDEL's stock price rose 0.99% to $64.10.
November 16, 2023 | 3:16 pm
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QuidelOrtho is exploring the sale of its transfusion medicine arm, which could be valued up to $2 billion. The unit's Q3 revenue was $164 million, showing slight growth. The stock rose 0.99% to $64.10.
The potential sale of a significant division like the transfusion medicine arm could lead to a positive short-term impact on QDEL's stock price due to the influx of capital and the strategic refocusing it implies. However, the impact is not guaranteed as the discussions are still in the early stages and may not lead to a sale. The slight increase in the unit's revenue indicates stable performance, which could be attractive to buyers. The recent stock price increase reflects a positive market reaction to the news.
CONFIDENCE 75
IMPORTANCE 80
RELEVANCE 100