- Quidel Corporation slips 15% on acquisition of Ortho Clinical Diagnostic Holdings
- The aggregate cost of the transaction stands at $6B
- Selling momentum remains strong moving into Thursday's open
Stock in Quidel Corporation slipped 14% in Thursday premarket trading, following a negative market reaction to the company’s intended acquisition of Ortho Clinical Diagnostic Holdings – one of the world’s largest in-vitro diagnostics companies. The acquisition was priced at $24.68 per share; involving a mixture of cash and listed shares for the newly combined company. The price represents a 25% premium over Ortho’s closing price on Wednesday – yet it’s Quidel investors that are were displeased this morning; as the stock continues to push below the $140 level.
At a total cost of $6B to the company, it seems Quidel buyers haven’t been too hasty this morning. Despite the merger facilitating the growth of world-class technologies by bringing together key industry players, Quidel stock is dominated by sellers in today’s premarket trading – perhaps bulls aren’t particularly keen on the costly merger; it might require some clear-cut results to welcome buyers back to the market.
Douglas Bryant, President, and CEO of Quidel, expresses his long-term vision:
“The combination with Ortho will help solidify Quidel as a leader in the diagnostics industry, bringing together innovative, complementary products, solutions, and services that enhance the health and well-being of patients across the globe”
In the last 6 months, Quidel stock has gained roughly 26% – accounting for a period of losses throughout early 2021. With the acquisition gearing the company towards global scalability; Quidel is angled to make the most out of the coming fiscal year. QDEL stock is down 15% in today’s premarket trading, trading at a price of $140.59.
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