NEW YORK – Quidel reported after the close of the market on Thursday that its third quarter revenues rose 276 percent year over year, beating the consensus Wall Street estimates on the top and bottom lines.
For the three months ended Sept. 30, the San Diego-based firm's revenues increased to $476.1 million from $126.5 million in Q3 2019, beating the average analyst estimate of $450.4 million. Quidel had previously issued preliminary revenues in the range of $475 million to $477 million.
The increase was driven primarily by growth in the rapid immunoassay and the molecular diagnostic solutions product categories related to strong demand for its Sofia SARS Antigen and Lyra SARS-CoV-2 tests.
"Our strong third quarter results serve as preamble for what will be a truly remarkable finish to 2020," Quidel President and CEO Douglas Bryant said in a statement.
Quidel's molecular diagnostic solutions business revenue skyrocketed to $63.0 million from $4.7 million, attributed primarily to Lyra SARS-CoV-2 assay revenue of $57.8 million.
Rapid immunoassay product revenue — which includes revenue from the QuickVue, Sofia, and Eye Health products — increased nearly sevenfold in the quarter to $337.0 million from $42.5 million in Q3 of 2019, primarily due to $317.9 million in revenue for the Sofia SARS Antigen test.
Revenue from the cardiac immunoassay business segment, which includes Triage, Triage Toxicology, and the Beckman BNP products, declined 3 percent to $64.8 million from $66.8 million attributed to reduced hospital visits, due to the COVID-19 pandemic, by patients who may have experienced chest pains. Specialized diagnostics solutions revenues dropped 10 percent to $11.2 million from $12.5 million.
In the quarter, Quidel received Emergency Use Authorization from the US Food and Drug Administration for a rapid antigen test to detect and distinguish influenza A, influenza B, and SARS-CoV-2 viruses from a single nasal swab in 15 minutes.
"This real-time diagnostic tool will significantly enhance medical effectiveness in treating and containing the dangerous twin pandemic of COVID-19 and virulent flu," Bryant said.
Quidel's Q3 net income was $232.3 million, or $5.33 per share, compared to a net income of $16.2 million, or $.38 per share in the prior-year quarter. On an adjusted basis, the company reported EPS of $5.78, beating the consensus Wall Street estimate of $4.75.
The company's R&D costs increased 78 percent to $21.4 million from $12.0 million in Q3 of 2019, attributed to increased spending on Savanna, a Sofia instrument upgrade, and next-generation instrument development projects, as well as incremental labor and material costs associated with COVID-19 product development. The firm's SG&A costs rose 39 percent to $53.8 million from $38.7 million, due in part to higher compensation costs driven by increased headcount and improved performance in the quarter, offset by reduced travel, meeting, and trade show costs due to COVID-19 travel restrictions.
Quidel finished the third quarter with $77.5 million in cash and cash equivalents.