QuidelOrtho (US:QDEL) GlobeNewswire News Room·2024-06-25 02:00Core Viewpoint - QuidelOrtho has faced significant challenges in its respiratory business, particularly related to COVID-19 test sales, leading to a decline in stock value and a class action lawsuit from investors [4][10]. Group 1: Business Overview - QuidelOrtho specializes in tests for respiratory diseases and other medical conditions, with a strong focus on seasonal flu and COVID-19 detection tests [1]. - The company has historically generated substantial revenue from high-margin COVID-19 tests sold to government entities, healthcare providers, and retail pharmacy chains [1]. Group 2: Recent Developments - On April 2, 2024, QuidelOrtho withdrew its FDA 510(k) submission for the Savanna RVP4 Test due to disappointing data [2]. - The company reported underwhelming fourth-quarter results for the period ending December 31, 2023, with Adjusted Earnings Per Share falling 46% below Wall Street expectations, primarily due to lower COVID-19 revenues from distributor destocking [6]. Group 3: Legal Issues - A class action complaint was filed against QuidelOrtho on April 12, 2024, alleging that the company misled investors about its business operations and prospects during the Class Period from February 18, 2022, to April 1, 2024 [4][10]. - The complaint highlighted that QuidelOrtho sold more COVID-19 tests than could be resold, leading to excess inventory and reduced orders from distributors and pharmacy chains [4]. Group 4: Stock Performance - Following the announcement of the FDA submission withdrawal, QuidelOrtho's stock price dropped by $4.85, or over 10%, closing at $42.15 on April 2, 2024 [8]. - On February 14, 2024, the stock price fell by $21.50, or more than 32%, closing at $45.27 after the company reported disappointing earnings [11].