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Biotech / Medical : QDEL - Quidel more quick diagnosis -- Ignore unavailable to you. Want to Upgrade?

To: steve dietrich who wrote (1657)	3/20/2000 10:53:00 AM
From: jad	Read Replies (1) \| Respond to of 1693

Quidel : Diagnostic Medical Test Kits from Wall ST City Quidel {QDEL} makes diagnostic kits for medical conditions and illnesses for use in physician's offices and clinical labs in addition to privately branded products available to consumers. Since the introduction of its initial pregnancy test product in 1984, Quidel's product line has grown such that it is distributed worldwide and includes tests for allergies, infectious diseases, and fertility. QDEL markets to both home use and professional use markets. Both markets are expected to grow with the consumer market - which is forecast to increase to $3.5 billion in five years. The professional market, defined as the point of care market (POC), is forecast to grow 27 percent annually over the next five years - up from $900 million in 1998. As technology improves and costs decline, these tests are increasingly used in hospital labs, emergency rooms and patients' hospital bedsides along with alternate care settings such as physicians offices and nursing homes. QDEL expects demographics, improvements in technology and healthcare reimbursement policies to contribute to the future growth of the POC market, and plans to focus further efforts on developing additional products for this sector. In 1999, Quidel took a number of steps to improve its financial performance. First, it established a strategic plan for 2000 and beyond which involved a number of changes. It added a new management team, eliminated three unprofitable international subsidiaries, eliminated low-volume, unprofitable product lines and revamped its computer system to automate many tasks that were previously accomplished manually. Future efforts will be focused on increasing market share in its core business of women's health and infectious diseases and to establish a stronger product pipeline through internal research and development. Finally, the company plans to pursue licensing and acquisition opportunities as well as potential partnerships with other health care companies. In a program referred to as the Test and Treat strategy, Quidel hopes to expand the use of its rapid diagnostics tests in conjunction with partnered companies' treatments to lower the cost of and improve the quality of patient care. It already has a multi-year, multi-billion dollar agreement with Glaxo Wellcome whereby its influenza test is used in conjunction with Glaxo's therapeutics. In addition, Quidel plans to file for FDA clearance of a herpes simplex virus test which, once approved, will be used in its existing partnership with Glaxo. These markets are significant due to the number of persons affected by these diseases each year. Influenza affects approximately 20 million annually with up to 300,000 hospitalizations while herpes infects at an estimated 500,000 individuals annually. Other partnerships established over the last year include an agreement with Merck-Medco to market its QuickVue H. Pylori test for diagnosis of peptic ulcers. H. Pylori is a bacteria found to play a principal role in ulcers. It also joined forces with Bristol-Myers {BMY} to co-promote Quidel's Strep A QuickVue test in conjunction with BMY's strep throat antibiotic. In the consumer over-the-counter market, sales of pregnancy tests more than doubled in 1999 due to its partnership (established in 1998) with Perrigo, a major producer of private-label healthcare products. QDEL also plans to expand to the veterinary market through a partnership with Heska Corporation to develop a rapid, easy-to-use diagnostic test for canine heartworm disease. Lastly, in a further effort to expand its profitable product line, the company purchased Metra Biosystems in June 1999 for $22.9 million. Metra is a leading maker of diagnostic tests for osteoporosis and other bone diseases. Net revenues have increased sequentially over the last three years, with total revenues of $47.1 million - up from $45.7 million in 1998. Net income grew to $7.66 million from $1.11 million the prior year while EPS increased to $0.32 from $0.05. Stay tuned for developments concerning this small-cap company, valued at $247.5 million, as it follows through on an aggressive plan to improve performance.