Quidel Corporation, a leading provider of rapid diagnostic tests, acquired Diagnostic Hybrids, Inc. for approximately $130 million in cash.
Diagnostic Hybrids, based in Athens, Ohio, is a market leader in manufacturing and commercializing direct fluorescent in vitro diagnostic assays used in hospital and reference laboratories for a variety of diseases, including viral respiratory infections, herpes, Chlamydia and other viral infections, and thyroid diseases. Diagnostic Hybrids' strategy is to leverage its antibody development and cell culture expertise to develop new products that address significant market opportunities.
Diagnostic Hybrids reported $51 million in revenues in 2009, an increase of 34% over 2008. An estimated $5 to $7 million of 2009 revenue is attributable to demand for the company's market-leading direct fluorescent antibody kits for the detection of Influenza A and B viruses. In 2009, Diagnostic Hybrids' operating income was $9.3 million or 18% of revenues. Excluding the impact of the Influenza A (H1N1) pandemic on the business in 2009, the company's three-year organic compounded annual growth rate has been 20%.
"We are pleased to complete the acquisition of Diagnostic Hybrids and extend a warm welcome to its employees," said Douglas Bryant, president and CEO of Quidel. "Our combined company offers the marketplace a continuum of diagnostic tests for triaging patients, confirming diagnoses and providing actionable results to improve patient care. We have begun an integration that is focused on maximizing Diagnostic Hybrids' growth opportunities and expect a smooth transition," Bryant continued.
About Quidel Corporation
Quidel Corporation serves to enhance the health and well being of people around the globe through the development of rapid diagnostic solutions that can lead to improved patient outcomes and provide economic benefits to healthcare providers. Marketed under the leading brand names QuickVue(R), D3 Direct Detection(TM) and Thyretain(TM), Quidel's products aid in the detection and diagnosis of many critical diseases and conditions, including influenza, respiratory syncytial virus, Strep A, herpes, pregnancy, thyroid disease and fecal occult blood. Quidel's research and development engine, including its Specialty Products Group, is also developing a continuum of diagnostic solutions from advanced lateral-flow and direct fluorescent antibody to molecular diagnostic tests to further improve the quality of healthcare in physicians' offices and hospital and reference laboratories.