Bragar Eagel & Squire, PC is

NEW YORK, June 24, 2024 (GLOBE NEWSWIRE) — Bragar Eagel & Squire, PC, a nationally recognized shareholder rights law firm, is investigating on behalf of long-term shareholders potential claims against QuidelOrtho Corporation (NASDAQ: QDEL) following a class action lawsuit filed against QuidelOrtho on April 12, 2024, which is effective from February 18, 2022, through April 1, 2024. Our investigation concerns whether QuidelOrtho’s board of directors breached its fiduciary duty to the company.

QuidelOrtho offers tests to detect and diagnose various respiratory diseases and other medical conditions. The Company’s respiratory business has historically been associated with the sale of seasonal flu tests and, more recently, COVID-19 detection tests. Since the beginning of the COVID-19 pandemic, the Company has derived a significant portion of its revenue from the sale of high-margin COVID-19 tests to government customers, healthcare providers (through its authorized distributors) and large pharmacy chains. QuidelOrtho manufactures respiratory tests under several brands, including QuickVue, Sofia and Savanna.

In December 2022, the Company announced that it had agreed to merge with Ortho Clinical Diagnostics Holdings plc (“Ortho”). The merger was completed in May 2022, shortly after the Class Period began. In the meantime, COVID-19 transitioned from pandemic to “endemic” status (i.e., COVID-19 infections were no longer increasing exponentially). Although COVID-19 became endemic, Defendants assured investors that they were well positioned to maintain a stable, high-margin revenue stream from their respiratory business. Among other strategies, the Company aimed to launch its “next flagship product,” a new test called Savanna Respiratory Viral Panel-4 (the “Savanna RVP4 Test,” which tests for COVID-19 and other respiratory diseases), leveraging Ortho’s commercial distribution network. During the Class Period, the Savanna RVP4 Test was not approved by the U.S. Food and Drug Administration (“FDA”) for marketing or sale in the United States. Therefore, investors closely followed the Company’s progress in obtaining approval for the Savanna RVP4 Test.

According to the complaint filed, throughout the Class Period, Defendants misled investors by making statements that were false and misleading at the time they were made because they knew or willfully ignored and failed to disclose the following adverse facts about QuidelOrtho’s business, operations and prospects: (a) that QuidelOrtho sold more COVID-19 tests to its distributors and pharmacy chain customers than it could resell to healthcare providers and end users; (b) that excess inventory of COVID-19 tests existed throughout the supply chain; (c) that as a result of (a)-(b), QuidelOrtho’s distributors and pharmacy chain customers tended to significantly reduce their COVID-19 test orders; (d) that due to undisclosed issues, there was an increased risk that there would be a delay in the launch of the Savanna RVP4 test in the United States; and (e) that as a result of (a) through (d), Defendants lacked a reasonable basis for their positive statements about QuidelOrtho’s business, finances and growth performance.

The filed lawsuit further alleges that the truth came to light on February 13, 2024, when QuidelOrtho reported disappointing results for the fourth quarter ended December 31, 2023. Among other things, the company’s adjusted earnings per share were 46% below the midpoint of Wall Street analysts’ expectations. This miss was largely attributed to lower COVID-19 sales during the quarter due to inventory reductions by distributors. QuidelOrtho also lowered its annual revenue forecast for the endemic COVID-19 pandemic to $200 million from $200 million to $400 million.

On this news, QuidelOrtho’s share price fell $21.50, or more than 32 percent, to close at $45.27 on February 14, 2024.

Then, on April 2, 2024, QuidelOrtho announced that it had withdrawn its FDA 510(k) application for authorization to sell the Savanna RVP4 test in the United States after recent data did not meet expectations.

On this news, QuidelOrtho’s share price fell $4.85, or more than 10 percent, to close at $42.15 on April 2, 2024.

If you are a long-term QuidelOrtho shareholder, have information, would like to learn more about these claims, or have any questions about this announcement or your rights or interests with respect to these matters, please contact Brandon Walker or Marion Passmore by email at [email protected]by phone at (212) 355-4648 or by Fill out this contact formThere are no costs or obligations to you.

About Bragar Eagel & Squire, PC:

Bragar Eagel & Squire, PC is a nationally recognized law firm with offices in New York, California and South Carolina. The firm represents individual and institutional investors in commercial, securities, derivatives and other complex litigation in state and federal courts across the country. For more information about the firm, visit www.bespc.com. Attorney advertising. Past results do not guarantee similar results.

Contact information:

Bragar Eagle & Squire, PC
Brandon Walker, Esq.
Marion Passmore, Esq.
(212) 355-4648
[email protected]
www.bespc.com