QuidelOrtho Earns $3.3 Billion in First Year as Combined Firm

Company is now on the list of 12 largest IVD firms after acquiring Ortho Clinical Diagnostics in 2022

IN OUR FEBRUARY 13, 2023, ISSUE OF THE DARK REPORT, we analyzed the 2022 full-year and Q4 earnings of major IVD companies. At the time our prior issue went to press, QuidelOrtho had not yet reported its year-end results. 

This is the first time that San Diego-based QuidelOrtho released full-year financial results as an integrated organization. It reported revenue (excluding COVID-19 testing) of $3.3 billion. 

Formerly known as Quidel, the diagnostics manufacturer used its windfall revenue from sales of COVID-19 test products to acquire the similarly sized Ortho Clinical Diagnostics for $6 billion in 2022. Both were in vitro diagnostics (IVD) companies. (See TDR, “Ortho Clinical Diagnostics to Be Acquired by Quidel,” Jan. 10, 2022.) 

Among 12 Biggest IVD Firms 

The combined 2022 revenue total for QuidelOrtho lifts its ranking in The Dark Report’s “Top 12 IVD Companies by Global Revenue” compared to the two former companies’ individual placements. Most recently, Ortho Clinical Diagnostics—with $2 billion in 2021 revenue—was ranked 12th, the last spot on our list, and Quidel did not rank. 

When the new rankings are calculated later this year, QuidelOrtho may reach the seventh or eighth position. That significant jump represents an increased share of the global IVD market and illustrates what motivates IVD manufacturers to either acquire or merge with similar companies. Also, such consolidations are intended to bolster the competitive market position of the companies involved in such mergers. 

Pre-merger, Quidel was a developer of point-of-care diagnostics and rapid tests, while Ortho Clinical manufactured chemistry, immunoassay, immunohematology technology and tests. The acquisition brought together complementary services on which the new company hopes to capitalize. 

‘Tremendous Opportunities’ 

“With our combined portfolio, we see tremendous opportunities to cross-sell our products in new markets,” said CEO Douglas Bryant in a statement. 

Comparing year-over-year results for QuidelOrtho compared to Quidel and Ortho Clinical as separate entities is tricky. 

In its 2022 report, the merged company in some cases used “supplemental combined revenue” to compare prior financial performance, but it is not clear how this estimate was generated based on financial statements. 

For this reason, though The Dark Report used past earnings in our comparisons, we acknowledge this is an imperfect comparison. (For example, certain costs in separate companies, such as human resources, could be less in a merged organization.) Here are full year and Q4 details for QuidelOrtho: 

  • 2022 total revenue was $3.7 billion. Ortho Clinical reported $2 billion in revenue in 2021, while Quidel reported $1.7 billion, so in a simple year-over-year comparison, growth appeared flat. 
  • 2022 labs business unit revenue was $1.3 billion. 
  • 2022 point-of-care revenue was $2 billion. 
  • 2022 molecular diagnostics revenue was $96.7 million. 
  • Q4 total revenue was $866.5 million. Quidel reported $636.9 million in Q4 2021, while Ortho Clinical reported $518.9 million, which is a noticeable difference compared to 2022. The company attributed the Q4 drop to foreign currency being weaker compared to the U.S. dollar. 
  • Q4 labs business unit revenue was $314.7 million. 
  • Q4 point-of-care revenue was $374.7 million. 
  • Q4 molecular diagnostics revenue was $14.6 million. 

Analyzer Growth Predicted 

During an earnings call, Bryant told investors that QuidelOrtho sees growth potential in 2023 for Sofia, a benchtop fluorescent immunoassay analyzer; Savanna, a multiplex, real-time PCR testing platform; and VITROS, an integrated chemistry and immunoassay system. 

There are currently more than 85,000 Sofia instruments installed worldwide, Bryant noted. He further broke down the percentage of Sofia instruments in different settings: physician office laboratories (POLs) (50%); hospitals (23%); urgent care centers (17%); and corporate accounts (10%). 

“The Sofia franchise, with its huge installed base, is clearly a valuable asset— one that can and should be leveraged by us to the greatest extent possible,” Bryant told investors. “This is why the R&D team is so focused on developing additional tests to be added to the menu for our Sofia customers. 

“The number of Sofia customers in the United States is up 6% year-over-year to around 21,400,” he added. “The number of POL customers is up 8%; hospital customers are up 2%; and urgent care customers are up 9%.” 

Bio-Rad, PerkinElmer Sales Down in 2022 

TWO OTHER PROMINENT IN VITRO DIAGNOSTICS COMPANIES reported end-of-year and Q4 financial results recently. 

Bio-Rad Laboratories in Hercules, California, shared these numbers: 

    • 2022 sales decreased 4.1% to $2.8 billion year over year. 
    • 2022 COVID-19 test-related revenue dropped 59% to $109 million. 
    • 2022 clinical diagnostics sales were flat at $1.4 billion. 
    • 2022 life sciences revenue increased 2.7% to $1.3 billion. 
    • Q4 2022 sales were flat at $730.3 million compared to Q4 2021. 
    • Q4 2022 COVID-19 revenue plummeted 71.7% to $13 million. 
    • Q4 clinical diagnostics sales were down 8.7% to $369.6 million. 
    • Q4 life science sales increased 10.1% to $359.7 million. 

During an earnings call, Andrew Last, PhD, Chief Operating Officer at Bio-Rad, said reducing clinical diagnostics order backlogs is a priority in 2023. 

Meanwhile, PerkinElmer in Waltham, Massachusetts, reported these financial results for 2022 and Q4: 

    • 2022 revenue was down 13.5% to $3.3 billion. 
    • 2022 diagnostics revenue fell 31% to $2 billion. 
    • Q4 revenue dropped 28% to $741 million. 
    • Q4 diagnostics revenue plunged 44% to $394 million.



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