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Quidel Q4 Revenues Increase Sharply on COVID-19 Sales, Beat EPS Estimates

NEW YORK (GenomeWeb) – Diagnostics manufacturer Quidel reported after the close of the market on Thursday that its fourth quarter revenues increased more than fivefold year over year due primarily to COVID-19 product sales.

For the three months ended Dec. 31, 2020 Quidel reported revenues of $809.2 million, up from $152.2 million in Q4 2019. The revenues were slightly above the analysts' consensus estimate of $809.1 million and consistent with the firm's preliminary earnings estimates.

Revenues for COVID-19 products were $678.7 million in the quarter.

During the quarter, revenues from rapid immunoassays spiked to $631.3 million from $64.9 million, due primarily to $587.6 million in Sofia SARS Antigen and Sofia 2 Flu + SARS Antigen test sales, the firm said.

Cardiac immunoassay revenue increased 6 percent year over year to $70.0 million from $65.8 million, while specialized diagnostic solutions revenue decreased 20 percent to $11.5 million from $14.3.

Molecular diagnostics revenue, meanwhile, increased twelvefold to $89.4 million from $7.1 million, which the firm attributed to Lyra SARS-CoV-2 assay revenue of $87.2 million.

In the quarter, Quidel received three Emergency Use Authorizations from the US Food and Drug Administration. The EUAs were for the Sofia 2 Flu + SARS Antigen FIA rapid test; the QuickVue SARS Antigen test for the professional point-of-care segment; and the Solana SARS-CoV-2 Assay for use with the Solana molecular diagnostic system.

Quidel's Q4 net income was $470.1 million, or $10.78 per share, up from a net income of $30.6 million, or $.71 per share, in Q4 2019. On an adjusted basis, Quidel's Q4 2020 EPS was $11.07, beating the consensus Wall Street estimate of $10.14 per share.

Quidel's Q4 R&D expenses rose approximately 71 percent to $25.5 million from $14.9 million in the year-ago period. Its SG&A costs were up 38 percent year over year to $58.4 million from $42.3 million.

For full-year 2020, Quidel total revenues tripled to $1.67 billion from $534.9 million, just above the analysts' consensus estimate of $1.66 billion. The increase was due to COVID-19 product sales.

Rapid immunoassay revenues jumped to $1.14 billion for the year from $191.7 million in 2019, led by a more-than-eightfold growth in Sofia revenue.

Cardiometabolic immunoassay revenues in 2020 decreased 9 percent to $242.9 million from $266.5 million, while specialized diagnostics dipped 7 percent to $50.9 million from $54.9 million.

Molecular diagnostics revenue increased tenfold to $223.0 million from $21.7 million, led by $203.2 million in revenue growth from Lyra.

In 2020, Quidel obtained EUA for a total of six COVID-19 diagnostics products.

Quidel's net income in 2020 was $810.3 million, or $18.60 per share, compared to a net income of $72.9 million, or $1.73 per share, in 2019. On an adjusted basis, Quidel reported EPS of $19.92, beating analysts' average estimate of $19.01.

In 2020, Quidel's R&D expenses rose 60 percent year over year to $84.3 million from $52.6 million. Meanwhile, its SG&A expenses rose 22 percent to $200.5 million from $163.9 million.  

In a statement, Quidel's CEO Douglas Bryant said the firm will soon be launching its Savanna multiplex molecular analyzer and the Sofia Q analyzer, the latter of which he called "a tiny product with the potential to eventually serve several 'new markets,' including the telemedicine and OTC markets."

Quidel ended the year with $489.9 million in cash and cash equivalents.