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Biotech / Medical : QDEL - Quidel more quick diagnosis

QDEL 24.35

+14.3%

Nov 21 9:30 AM EST

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To: Randy Atkins who wrote (632)	4/16/1997 3:41:00 PM
From: Robert Busse	of 1693

Randy, I don't know if you are correct about Quidel "losing". I certainly hope not. I have an idea that BD was motivated by something other than concern about their patent- I suspect they would love to acquire Quidel -they know Quidel makes good products since Qdel made products for them for many years- they also know Qdel has a potential gold mine in its CLIA waived products. I have reason to believe that an analyst who formerly followed Qdel and did a favorable report on them for his old employer has now issued a new report for his new employer (a few days before the filing of the BD suit!!!) with some very favorable stuff in it for Qdel- I haven't seen it yet but I hope to get it in the next day or so- supposedly it puts Qdel's earnings growth at 40% annually. I also understand there have been some revisions to Qdel's earnings estimates-one source told me "Quotrak" had them at 30 cents per share for next year and another source told me the new consensus for next year was 26 cents. I can't verify any of these figures as of yet but I hope to shortly. I find it surprising that BD chose just after "good news" on Qdel (if the above info is correct) and just before more good news (hopefully) in the year end earnings to file suit against Quidel. Doesn't anyone else find this a bit peculiar, especially since BD and Qdel have had such a close association over so many years, sharing products and even key personnel (MR. Frankel himself). It's not like BD just "discovered" this alleged "infringement" on April 1. I also find it surprising to see where BD filed an S-3 Form w/ the SEC on 3-18-97 to issue $300 million in debt securities and warrants (for possible acquisitions???). They just bought Pharmingen in San Diego but it didn't cost them anywhere near $300 million. Where is the rest of the money going?? I suspect BD is trying to beat down the price of Qdel with their lawsuit to a point where they can gain control of Qdel for a mere pittance of Qdel's true worth. The lawsuit, as I see it , is BD's way of gaining "leverage" over Qdel during the negotiations. If you don't think this type of "hardball" happens, check out the history of Monsanto and Calgene. I expect to see Qdel fight hard to stay out of BD's clutches and I sincerely hope they prevail. BOB

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