Keiko,
I agree with you completely that there will be some consolidations in the POC testing field.
I listened to Quidel's recent conference call that discussed Mr. Frankel's resignation and Quidel's strategy. (Bob, thanks for posting the phone number.)
In the conference call Mr. de Bruin commented that Mr. Frankel did a great job taking Quidel to its present level, but that Quidel's BOD felt Quidel need a new CEO to take the company to the next level - acquisitions.
Mr. de Bruin commented that Quidel's got some very strong alliances with major distributors, and some have acquired other companies, indirectly benefiting Quidel. It's a huge asset that I think provides an advantage for Quidel to get to the next level. Big distributors may not want to mess with companies that have few products. Where could they go to sell their products? Quidel! Gives their products almost instant access to the POC and OTC market.
Quidel seems to me to be in somewhat similar position today as Dell was in 1994. Dell made a negative press release that it would stop development of an "un-competitive" laptop. Dell's stock dropped about 50%. Well, Quidel just issued a negative press release, and soon after, just like Dell did, de Bruin touted its "distribution base." I remember an article in some money magazine in which it was explained that Dell's distribution network took a lot of work to develop and, although not impossible, would be difficult for the competition to copy and put in place. Well, Dell's stock's increased about 35 times since 1994.
Here are some interesting tidbits for thought:
- Roche's got a flu treatment drug in Phase III (http://www.roche.com/roche/news/mrel97/e970929a.htm ).
- Roche recently acquired Boehringer Mannheim, and in its October 27, 1997 press release said: ". . . . . The proposed integration is expected to make Roche a leading diagnostics company and to significantly increase its potential for value creation. . . . ."(http://www.roche.com/roche/news/mrel97/e971027a.htm )
- Prior to joining Quidel, Mr. de Bruin was Chairman, President and Chief Executive Officer of Boehringer Mannheim (http://www.quidel.com/newsrels/06x25x97.htm ).
- I think I remember reading somewhere that Quidel will retain distribution rights to its flu test. Could Glaxo or Roche be interested?
- Quidel's stock didn't tank on March 11th, the day Quidel reported its fourth quarter revenue and operating income will be lower than anticipated.
- Then just two days later on Friday the 13th 850,200 Quidel shares traded in one day. There are many reasons to sell: divorce, college for the kids, home, another investment, etc., but an institution, mutual fund, or some other big player had to buy on the 13th for 850,200 shares to trade, and big players don't invest their dough unless they think it'll rise.
- To: Keiko (4572 ), From: Robert Busse, Tuesday, Feb 18 1997 9:23PM EST, Reply #4578: "Keiko, Did you say San Diego-that is the home of my other favorite rapid diagnostic company - Quidel Corp - coincidence?? BOB"
- The infamous Dr. Pronovost.
- Trinity directors exercise options (http://biz.yahoo.com/bw/980319/trinity_bi_1.html )
- On March 19th 872,000 Trinity shares trade and Trinity closes up 5/8, 32%
Mike |
