Quidel Corp. (Nasdaq: QDEL), a provider of rapid diagnostic tests, has completed its previously announced acquisition of 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 percent over 2008. An estimated $5 million 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 percent of revenues. Excluding the affect of the Influenza A (H1N1) pandemic on the business in 2009, the company’s three-year organic compounded annual growth rate has been 20 percent.