QuidelOrtho Plans to Sell Testing Unit for $1.5 Billion

Key Facts

1QuidelOrtho plans to sell its testing unit for about $1.5 billion to private equity firms.

2The company's shares have fallen 90% since its rapid antigen tests were approved for Covid-19.

After a steep decline in market value, QuidelOrtho is planning to sell its diagnostic testing unit for about $1.5 billion to private equity firms, according to a Financial Times report. The move comes as part of a strategic review following a 90% plunge in the company's shares since the approval of its rapid antigen tests for Covid-19.

The potential sale reflects a broader restructuring in the diagnostics industry as demand for Covid-19 tests wanes, pushing companies to refocus on traditional product lines. QuidelOrtho has not commented on the report, but sources indicate the talks are still in early stages.

Investors are watching for further details on the deal, which could provide much-needed liquidity for the company. The market will also be looking for signs of operational turnaround after the divestiture of its pandemic-era assets.