Ortho Clinical Diagnostics Holdings plc (OCDX) stock surged 6.32% in the current-market trading session at the price of $21.04 after it signed a definitive agreement with Quidel Corporation. OCDX is one of the largest pure-play in vitro diagnostics companies committed to reforming patient care.
Definitive Agreement with QDEL
On 23rd December 2021, Ortho Clinical Diagnostics Holdings plc (OCDX) announced entering into a definitive agreement with Quidel Corporation (QDEL). Under the agreement, QDEL will acquire Ortho for $24.68 per share of common stock. It represents a 25% premium over OCDX’s closing price and is an equity value of roughly $6.0 billion.
The transaction will close on the first half of fiscal 2022 and is subject to customary closing conditions. The combined company will connect world-class technologies to benefit consumers with greater access to immunoassay, molecular diagnostics, clinical chemistry, donor screening, immunohematology, and point-of-care diagnostics offerings.
Chief executive officer of OCDX, Chris Smith, remarked that QDEL shares their dedication to clients and passion for the patients they serve. By combining Quidel’s point-of-care diagnostics with Ortho’s global reach, there is a great opportunity to advance into attractive adjacent markets, capitalize on the cross-selling opportunities, and accelerate product development of molecular technologies. Jointly, they will drive towards life-changing diagnostic solutions to enhance patient health and deliver financial benefits to the healthcare system.
OCDX Third Quarter 2021 Results
On 3rd November 2021, OCDX reported its financial results for the third quarter ended 3rd October 2021 and presented its corporate updates. Adjusted net income was $50.9 million, or per share of $0.21, for the third quarter of 2021. For the third quarter of 2020, adjusted net income was $21.0 million, or per share of $0.14.
Core revenue raised to $508.9 million during the third quarter of 2021. It represents a 13.2% increase from $443.3 million in the same quarter of last year. As of 3rd October 2021, OCDX had cash and cash equivalents of $255.9 million. Cash and cash equivalents were $132.8 million on 3rd January 2021. Total debt was $2.3 billion on 3rd October 2021, a 39% decline year-over-year.