Why One Value Fund Just Bought $30 Million of a Diagnostics Stock Down 90% From Pandemic-Era Highs

Company Overview - QuidelOrtho Corporation is a leading provider of diagnostic testing solutions with a global footprint and a diversified product portfolio [5] - The company focuses on innovation in diagnostic technologies and expanding access to rapid and accurate testing for both professional and consumer markets [6] - QuidelOrtho generates revenue through direct sales and distribution of diagnostic equipment and consumables to various healthcare providers and laboratories [9] Financial Performance - As of September 30, QuidelOrtho reported a revenue of $2.7 billion and a net income of -$1.2 billion [4] - The company's shares were priced at $27.76, reflecting a 26% decline over the past year, underperforming the S&P 500, which increased by 13% during the same period [3] - The latest quarter showed signs of stabilization in core business, with non-respiratory revenue and lab revenue both growing by 5% [10] Investment Insights - Newtyn Management increased its stake in QuidelOrtho by purchasing 994,332 shares for approximately $30.4 million, raising its total position to 2.7 million shares valued at $79.5 million [2][3] - QuidelOrtho's adjusted EBITDA margin expanded to 25%, up 180 basis points from the previous year, indicating improved cost efficiencies [10] - The company has seen nearly a 90% decline in share value since 2020, but recent operational improvements may suggest a more durable growth trajectory [10][11]