Quidel Confident in Legal Strength and Validity of Supply Agreement with Beckman Coulter to Sell BNP Assay Assets
November 27 2017 - 12:40PM
Business Wire
The company plans to vigorously defend its
position
Quidel Corporation (NASDAQ: QDEL) (“Quidel”), a provider
of rapid diagnostic testing solutions, cellular-based virology
assays and molecular diagnostic systems, acknowledged Beckman
Coulter (“Beckman”) plans to pursue commercial litigation to allow
it to sell BNP directly to customers, contrary to its agreement
with Quidel for the development, manufacture, and supply of a
B-type Naturietic Peptide (BNP) assay for the diagnosis of cardiac
disease (heart failure) (the “Supply Agreement”).
Quidel views Beckman’s claims as meritless, and in opposition to
Beckman’s long-standing strategy of honoring the Supply Agreement
with its previous partners – Alere and Biosite – over the last 14
years, and merely a tool in an effort to purchase the BNP assay
business from Quidel. Quidel plans to vigorously defend the
validity of the Supply Agreement and is confident in its legal
position.
In recent weeks, the Board of Directors of Quidel unanimously
rejected offers by Beckman’s parent company, Danaher Corporation
(“Danaher”), to acquire the BNP assay business. The Board found
that Danaher’s proposal was inadequate for the BNP assay business,
and believes the execution of Quidel’s long-term strategy,
including the integration of its recently acquired assets, will
create substantial long-term value for Quidel’s shareholders.
On October 6, 2017, Quidel acquired certain assets and rights
from Alere, which were divested as part of Abbott Laboratories’
acquisition of Alere. Under the Supply Agreement, which Alere
acquired from Biosite and Quidel acquired from Alere, Quidel
provides to Beckman certain proprietary antibodies (developed under
a license with Scios), Beckman manufactures assays (compatible with
Beckman analyzers), Beckman sells the assays to Quidel, which in
turn sells the assays to customers for use on Beckman analyzers.
Pursuant to the terms of the Supply Agreement, the Supply
Agreement, including its non-compete provision, remains in effect
so long as the Scios license remains in effect.
About Quidel Corporation
Quidel Corporation serves to enhance the health and well-being
of people around the globe through the development of diagnostic
solutions that can lead to improved patient outcomes and provide
economic benefits to the healthcare system. Marketed under the
Sofia®, QuickVue®, D3® Direct Detection, Thyretain®, Triage® and
InflammaDry® leading brand names, as well as under the new Solana®,
AmpliVue® and Lyra® molecular diagnostic brands, Quidel’s products
aid in the detection and diagnosis of many critical diseases and
conditions, including, among others, influenza, respiratory
syncytial virus, Strep A, herpes, pregnancy, thyroid disease and
fecal occult blood. Quidel's recently acquired Triage® system of
tests comprises a comprehensive test menu that provides rapid,
cost-effective treatment decisions at the point-of-care (POC),
offering a diverse immunoassay menu in a variety of tests to
provide you with diagnostic answers for quantitative BNP, CK-MB,
d-dimer, myoglobin, troponin I and qualitative TOX Drug Screen.
Quidel’s research and development engine is also developing a
continuum of diagnostic solutions from advanced immunoassay to
molecular diagnostic tests to further improve the quality of
healthcare in physicians’ offices and hospital and reference
laboratories. For more information about Quidel’s comprehensive
product portfolio, visit quidel.com.
Forward-Looking Statements
This press release contains certain forward-looking statements.
These matters are subject to risks and uncertainties that could
cause actual results to differ materially from those projected,
anticipated or implied. These risks and uncertainties include: the
outcome of the Beckman litigation; the risk that disruptions will
occur from the litigation that will harm the Company’s business or
its reputation; the cost of defending the litigation, and any
potential monetary exposure arising from the litigation, to the
extent that the Company is not indemnified under the amended and
restated BNP Purchase Agreement with Abbott and Alere; and the
impact of the litigation and its outcome on the Company’s revenue
and other financial results, including those expected from the
Supply Agreement. Defending litigation can be costly and
time-consuming and divert the attention of management from the
Company’s business. In addition, the outcome of litigation is
inherently uncertain, and an adverse outcome could result in
material damages or equitable remedies that result in a significant
reduction in revenues from those the Company currently expects
under the Supply Agreement, which could materially and adversely
affect the Company’s financial condition and results of operations.
Forward-looking statements are based on management’s expectations
as well as estimates and assumptions prepared by management that,
although they believe to be reasonable, are inherently uncertain.
The Company is subject to additional risks and uncertainties
described in the Company’s annual report on Form 10-K and
subsequent quarterly reports on Form 10-Q. You are cautioned not to
place undue reliance on these forward-looking statements, which
reflect management’s analysis and expectations only as of the date
of this press release. We undertake no obligation to publicly
release the results of any revision or update of the
forward-looking statements, except as required by law.
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version on businesswire.com: http://www.businesswire.com/news/home/20171127005768/en/
Quidel CorporationRandy StewardChief Financial Officer(858)
552-7931orRuben Argueta(858) 646-8023rargueta@quidel.com
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